Tezzbuzz Desk– Most of the 16 IPOs listed so far in September have given positive returns to investors. According to Ace Equity data, there were only five issues which were listed below their fixed issue price, while the rest of the companies gave profits to investors on the day of listing. Among these, the performance of ESDS software solution was special. The issue price of the company was Rs 429 and its listing was at Rs 746, i.e. a listing gain of about 74 percent. Later the shares rose by about 297 per cent above the issue price. Apart from this, Glass Wall Systems gave a listing gain of about 70 per cent and Karamtara Engineering gave a listing gain of about 44 per cent. However, the momentum was not sustained in all IPOs. Some companies recovered after a weak start, while some shares lost initial gains and fell below the issue price.
Prasol Chemicals was listed at about 10 per cent discount, but later it rose above the issue price. Symbiotic Pharma Lab also had a weak start, but later its shares started trading above the issue price. On the other hand, Pranav Constructions was listed at a premium of about 31 per cent, but later went down below the issue price. This indicates that the stock's performance may vary after listing gains. The case of the NSE IPO is different because its size is much larger than the other September IPOs. The issue size of NSE is more than Rs 22,561 crore. Such a big issue brings a huge supply of shares in the market and adequate demand from institutional investors is necessary for a strong listing. NSE's IPO is completely an offer for sale i.e. OFS. This means that the company will not get new funds from this issue. Despite this, the IPO received a good response from investors and was subscribed 5.71 times in total.
Now the biggest discussion is about GMP of NSE. At the time of announcement of the price band, the premium in the gray market was quite high, but later it declined. At present GMP is said to be around 2 percent. This premium is not very big compared to the upper price band of Rs 1,785. Experts have also advised investors not to have too many expectations from the NSE listing. According to Avinash Gorakshkar, a huge surge in the initial phase may be difficult due to the large issue size. Whereas Dr. Ravi Singh has described the valuation and source of income of NSE as important. According to him, NSE is coming at a valuation of about 43 times its earnings and fees from options trading play a big role in the company's income. In such a situation, investors definitely have an eye on the listing of NSE, but the performance of the second IPO in September cannot be considered as a direct indication of listing gain for NSE.