Market correction impacts IPO sentiment, only 2 launches next week
What's the story
The Indian equity market has experienced a significant correction since the beginning of October, impacting the primary market sentiment.
This shift is evident in the reduced number of initial public offerings (IPOs) scheduled for next week.
Only two companies are set to open their IPOs, a stark contrast to September's surge of 12 mainboard and 40 SME segment public issues.
Market fluctuations
Nifty 50 experiences nearly 5% drop amid global tensions
The Nifty 50 has seen a nearly 5% drop from its record high in the October series, due to escalating tensions in the Middle East, rising oil prices, and concerns over market overvaluation.
There is also apprehension about capital outflow from India to China following China's announcement of stimulus measures last month.
Despite these challenges, experts remain optimistic about India's long-term growth prospects and advise investors to buy during major dips for future gains.
Upcoming IPOs
A look at Garuda Construction and Engineering
The primary market will witness one IPO launch each from the mainboard and SME segments next week, with a total fundraising target of ₹365.5 crore.
Garuda Construction and Engineering is set to open its ₹264 crore IPO on October 8, with a price band at ₹92-95 per share.
The Mumbai-based company plans to raise ₹173.85 crore through a fresh issue, and ₹90.25 crore via an offer-for-sale at the upper price band, closing on October 10.
SME IPO
Shiv Texchem to launch IPO
Shiv Texchem, a supplier of hydrocarbon-based chemicals, is also set to launch its ₹101.35 crore maiden public issue on October 8, and close on October 10.
The price band for this book-built issue has been fixed at ₹158-166 per share.
The entire IPO from the SME segment next week will consist solely of a fresh issue of 61.05 lakh equity shares by the company.
Issue closure
Khyati Global Ventures to close public issue
Khyati Global Ventures, an exporter and re-packager of various FMCG products, will close its ₹18.3 crore SME public issue on October 8. The fixed price issue has an offer price of ₹99 per share and was subscribed 2.7 times on its debut on October 4.
Upcoming listings
Six SME segment companies to list next week
Next week will also see six companies from the SME segment listing.
HVAX Technologies and Saj Hotels are set to debut on the NSE Emerge effective October 7, while Subam Papers will list on the BSE SME and Paramount Dye Tec on the NSE Emerge on October 8.
Additionally, trading in NeoPolitan Pizza and Foods stocks will begin on the BSE SME starting October 9, followed by Khyati Global Ventures shares on October 11.