Five companies to launch IPOs worth over 7,000 crore this week
primary market will be abuzz with activity in the week ahead with five companies scheduled to launch IPOs (Initial Public Offerings) worth over ₹7,000 crore.
Analysts said the strong sentiment in the secondary market could help these IPOs and advise investors to subscribe to these issues at least for listing gains.
Bankers said retail investors may consider issues like Tata Technologies and IREDA over others because of the limited money available for investments.
The flood of IPOs in this short period is unlikely to hurt liquidity in the main markets, said bankers.
«The money from one issue may not be available for the other; but except for that, the broader market may not see any effect,» said Satyen Shah, president, Nuvama Investment Banking and Fixed Income.
«The inflows from an institutional and HNI level may not be a worry since they have enough capital, but at retail level due to a limited corpus, we may see some discretion from investors based on the valuation and sectors of the companies.» ET spoke to analysts for views.
Tata Technologies
IPO Size: ₹3,042 crore
Price Band: ₹475-500
Open-Close Date: November 22 — 24
Analysts are recommending subscribing to the first IPO from the Tata Group in over two decades citing its growth prospects and cheap valuations compared to peers. IDBI Capital, which recommends 'subscribe' to the Tata Technologies IPO, said the issue values the company at 33 times FY23 earnings as against 63 times of peers.
Market experts said the issue will be in high demand. «Tata Tech is the most hyped issue from the lot and will get the highest subscription, but it will be difficult for small retail investors to get any allotment,» said Arun Kejriwal, founder, KRIS, an investment consultancy
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