Ami Organics, Vijaya Diagnostic make strong stock market debuts

Shares of Ami Organics and Vijaya Diagnostic rallied 53 per cent and 17 per cent over their issue price during their stock market debut on Tuesday.

Ami Organics’ stock closed at Rs 935, with a gain of Rs 325, while Vijaya Diagnostic finished at Rs 619, with a gain of Rs 88.

Ami Organics’ initial public offering (IPO) was subscribed 65 times. Its IPO consisted of Rs 200-crore fresh fund raise and Rs 370-crore secondary share sale.

Vijaya Diagnostic, one of the largest diagnostic chains in southern India, garnered 4.5 times subscription for its IPO. The IPO was entirely a secondary share sale worth Rs 1,894 crore.

The listing gains made by Ami Organics and Vijaya Diagnostic end the succession of tepid listings in the recent past. Shares of the previous four companies to make their stock market debut had dropped below their IPO price on listing day.

So far, till August 2021, companies have raised Rs 60,288 crore through IPOs, the highest since 2017.

Sansera Engineering IPO subscribed 53% on day1

Sansera Engineering’s IPO was subscribed 53 per cent on Tuesday, the first day of the issue. A day earlier, the auto component maker had allotted shares worth Rs 382 crore to anchor investors at Rs 744 per share. Sansera has priced its issue between Rs 734 and Rs 744 per share. Sansera’s IPO is entirely an offer for sale worth Rs 1,283 crore. At the top-end of the price band, the company’s market cap translates to Rs 3,823 crore. “At Rs 744, FY21 P/E of 35 times appears reasonable given the expected improvement in earnings CAGR over FY21-23 and hence we recommend subscribe,” AngelOne said in a note.