IPO frenzy intensifies in September: 41 cos file papers with SEBI; listing gain soars to 114% with 239 issues YTD
IPO frenzy intensifies in September: 41 cos file papers with SEBI; listing gain soars to 114% with 239 issues YTD
Out of the 239 IPOs listed during this period, 175 opened above their issue price, 10 debuted at their issue price, and 33 listed below their issue price initially but later recovered to close above the issue price by September 30, 2024.
As of this date, 183 IPOs continue to trade above their issue price, underscoring the bullish sentiment prevailing in the market.
In FY2024 alone, 40 IPOs were listed, and 35 of them are currently trading above their issue price. This demonstrates a strong performance trend, indicating sustained investor interest and confidence in new market offerings.
Retail investors have significantly benefited from this IPO wave. Out of the 236 IPOs analyzed, the average listing gain for retail investors stood at 27 per cent. By September 30, 2024, these gains have expanded to a substantial 114 per cent, reflecting the lucrative opportunities that retail investors have capitalized on through IPO participation.
SEBI found that 50 per cent of the shares allotted to individual investors by value were sold within the first week of listing, and 70 per cent of the shares were sold within a year.
Investors were more inclined to sell shares that showed positive listing gains while holding onto those that listed at a loss. Interestingly, when IPO returns exceeded 20 per cent, investors sold 67.6 per cent of shares by value within a week, compared to just 23.3 per cent for IPOs that had negative returns.
SEBI's policy interventions in April 2022, particularly those concerning Non-Institutional Investor (NII) share allotment processes and the Reserve Bank of India's (RBI) guidelines on IPO financing by Non-Banking Financial Companies (NBFCs), have had a significant impact.
Oversubscription rates in the NII category have halved, dropping from 38 times to 17 times. Additionally, applications from "big ticket" NII investors, applying for more than Rs1 crore in IPOs, have seen a sharp decline, falling from an average of 626 per IPO before the policy changes to just 20 per IPO after the new rules were implemented.
Oversubscription rates in the NII category have halved, dropping from 38 times to 17 times. Additionally, applications from "big ticket" NII investors, applying for more than Rs1 crore in IPOs, have seen a sharp decline, falling from an average of 626 per IPO before the policy changes to just 20 per IPO after the new rules were implemented.
Oil soars 10% in five days, logs biggest weekly gain in one year over Israel-Iran war; Brent sits at $78/bbl
Oil prices rose on Friday and settled with their biggest weekly gains in over a year on the mounting threat of a region-wide war in the Middle East, although gains were limited as U.S. President Joe Biden discouraged Israel from targeting Iranian oil facilities.
Brent crude futures rose 43 cents, or 0.6%, to settle at $78.05 per barrel, while U.S. West Texas Intermediate crude futures gained 67 cents, or 0.9%, to close at $74.38 per barrel.
Israel-Iran war: Experts recommend these five oil stocks to buy on Monday
Stocks to buy on Monday
Regarding oil stocks to buy on Monday, VLA Ambala recommended buying these five shares: Gandhar Oil Refinery, Oil India Ltd, Petronet LNG, BPCL, and ONGC.
1] Gandhar Oil Refinery: "Its current movement suggests it is due for a breakout. GANDHAR's current PE of 16.04 is lower than the sectoral PE of 18.32, suggesting undervaluation. While it's currently trading at ₹216, investors can explore the buying range of ₹210 to ₹215 for a target price of ₹228, ₹235, and ₹250. They may hold it for 1–8 weeks while chasing a stop loss of ₹200," said VLa Ambala.
2] Oil India Limited: Speaking on OIL shares, Sugandha Sachdeva, Founder of SS WealthStreet, said, "Shares of Oil India have gained around 135% year to date even as they witnessed a sharp correction from their peak of Rs.767.90 in August, driven by a sharp decline in crude oil prices during Q3 CY24, leading to a pullback in this upstream company's stock. However, the stock is now showing signs of stabilization, with renewed upward momentum following a surge in crude oil prices due to escalating geopolitical tensions in the Middle East."
Penny stock under Re 1: Small-cap stock in focus as board sets date to consider fundraise
Srestha Finvest news
The Non-Banking Financial Company (NBFC) informed the BSE on Friday about the board meeting date, saying, "Pursuant to Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the board meeting is scheduled to be held on October 09, 2024, to consider and approve fundraising, in one or more tranches, in compliance with the applicable provisions of law."
The small-cap NBFC stock is available for trade on BSE only. It ended Friday with a market cap of ₹145 crore and a trade volume of 2,16,96,699. After price adjustment post-stock split in a 1:2 ratio, its 52-week high is ₹1.28 apiece. Likewise, its 52-week low is ₹0.49 per share.
The small-cap penny stock under Re 1 has been on an uptrend for the last one week. The NBFC stock hit 55 upper circuits on all four sessions last week, logging around an 18.50% rise in the last five sessions. Considering the price adjustment post-stock split on 24th September 2024, this penny stock has delivered a 40% return to its positional investors in YTD time. In one year, this small-cap penny stock has given a 45% return to its shareholders.
Comments
Post a Comment