Street Signs: IPO pulse weakens, TBO Tek's lock-up expiry, and more

IPO pulse weakens: New listings struggle for breath in mkt vacuum

 

It is not just the secondary market navigating a turbulent phase; the primary market is also facing challenges, as indicated by grey market premiums (GMPs). This week’s pipeline includes three launches — Swiggy, Sagility India, and Acme Solar Holdings — and one listing, Afcons Infrastructure. The GMP for these four transactions ranges from minus 5 per cent to 5 per cent. Shares of food delivery giant Swiggy are commanding a premium of 5 per cent, while Afcons Infrastructure, part of the Shapoorji Pallonji group, is expected to list at a discount. “While the selloff in the secondary market has not halted initial public offering (IPO) launches, it has impacted sentiment. There is also a sense of IPO fatigue after a record number of launches over the past few months,” said an investment banker.

 

TBO Tek’s lock-up expiry: Countdown clock winds down to zero hour

 

TBO (Travel Boutique Online) Tek, a global travel distribution platform, could be in focus in the coming weeks as the six-month lock-up period on its shares expires on November 9. Some of these shares are held by General Atlantic, Augusta TBO, and TBO Korea Holdings. Private equity firm General Atlantic, which has a 14.73 per cent stake in the company, is sitting on over 2x gains in less than two years. TBO Tek was listed on May 15 following a Rs 1,551 crore initial public offering that was oversubscribed more than 85 times. Shares of TBO Tek currently trade 75 per cent above their issue price. “General Atlantic, having performed well in a short period, may come to the market to unlock some gains as well,” said equity research analyst Clarence Chu of Aequitas Research, who publishes on Smartkarma.

 

Amfi turns off the tap: SIP insights enter data drought

 

The Association of Mutual Funds in India (Amfi), a non-profit industry body for asset managers, has stopped releasing monthly net systematic investment plan (SIP) inflow data, which provided valuable insights into retail investor behaviour and redemption patterns from SIP accounts. This data was previously shared exclusively with Amfi members. The move follows Amfi’s concerns over media comparisons between net and gross SIP numbers, highlighting that gross SIP numbers reflect a specific month, while net data accounts for redemptions accumulated over months or years. The last released net SIP data for July stood at Rs 8,964 crore, with gross inflows reaching Rs 23,332 crore.