Street signs: 10 IPOs raised Rs 17,110 cr, bullfight of exchanges, and more

IPO Express: Chugging full steam ahead with record-breaking August

In August, 10 initial public offerings (IPOs) raised Rs 17,110 crore, marking the highest monthly total since May 2022. Despite this impressive fundraise, the momentum remains vigorous, with Rs 8,390 crore worth of IPOs lined up for this week alone. These include Bajaj Housing Finance (Rs 6,560 crore), PN Gadgil Jewellers (Rs 1,100 crore), Kross (Rs 500 crore), and Tolins Tyres (Rs 23 crore). Additionally, Western Carriers (India), Arkade Developers, and Northern Arc are preparing to launch their issues soon. This surge is driven by remarkable gains for new listings, with Premier Energies and ECOS (India) Mobility & Hospitality trading at 143 per cent and 31 per cent above their issue prices, respectively. Bajaj Housing’s grey market premium also exceeds 70 per cent. Amidst this excitement, experts advise investors to be discerning and selective, focusing on high-quality issuances rather than getting swept up in the market frenzy.

The bullfight of exchanges: NSE and BSE vie for the top spot

As the National Stock Exchange (NSE) celebrates 30 years of operations, it recently unveiled sculptures of a bull and human figures on its campus. This gesture has amused some market players, who question whether it is an attempt to reclaim dominance in the derivatives space. While the NSE remains the preferred exchange for futures and options (F&O) traders, rival BSE has been steadily gaining ground over the past 18 months. In January 2023, the NSE’s average daily trading volume (ADTV) for the F&O segment was Rs 202 trillion, compared to BSE’s Rs 9,500 crore. Now, BSE’s ADTV has surged to Rs 110.7 trillion, nearly a fourth of NSE’s Rs 391 trillion. Although the NSE still maintains a considerable lead, the gap is narrowing. Will the bulls switch allegiance, or will the Securities and Exchange Board of India’s upcoming rule tightening further balance the scales? Only time will tell.

Market comeback kid: Hexaware’s bold return to the stock stage

Hexaware Technologies, which was delisted from Indian stock exchanges in November 2020, is making a return to the market. The Carlyle Group-owned company has filed for a Rs 9,950 crore initial public offering, potentially the largest of the year. This move has sparked debate about whether Hexaware is capitalising on the market boom. However, it’s important to note that the company has undergone substantial changes since going private. Baring Private Equity Asia, the controlling stakeholder at the time of delisting, sold Hexaware to CA Magnum Holdings, a Carlyle affiliate, for around $3 billion in 2021. As Hexaware seeks to relist, all eyes are on the valuation it will achieve and the potential gains for Carlyle within a short span of three years.