It was an action-packed morning for Dalal Street investors on Monday as three initial public offerings (IPOs) - Bajaj Housing Finance, Kross, and Tolins Tyres - hit stock exchanges. The highly-anticipated IPO of Bajaj Housing Finance made a blockbuster debut on the domestic bourses, in line with Street expectations, while shares of Kross and Tolins Tyres kicked-off trading on a flat note.
After shattering the IPO subscription record for its ₹6,560-crore issue, shares of Bajaj Housing Finance listed at ₹150 on the BSE and NSE, a premium of 114% over the issue price of ₹70 per share.
In sharp contrast, Kross shares opened flat at ₹240, at par with the IPO price on the BSE and NSE, while Tolins Tyres listed at ₹227 against the issue price of ₹226.
Post listing, shares of Kross gained as much as 10.7% to ₹265.65 on the BSE, while it hit a low of ₹231.80 in the first hour of trade so far. At the time of reporting, the stock was trading at ₹256.55, up 6.9% with a m-cap of ₹1,655 crore.
Meanwhile, Tolins Tyres shares hit 5% upper circuit limit of ₹238.30, with a m-cap of ₹941.50 crore.
On the other hand, the BSE benchmark Sensex and Nifty were trading marginally higher by 0.1% each.
The listing of Kross and Tolins Tyres shares were below Street expectations as they were commanding a grey market premium (GMP) of 10.2% and 13.27%, respectively, in the unlisted market ahead of listing.
On listing of Tolins Tyres, Shivani Nyati, Head of Wealth, Swastika Investmart, says the flat performance contrasts with the strong listing of Bajaj Housing Finance, which likely diverted investor attention and impacted the stock’s debut.
“Despite the muted listing, Tolins Tyres' IPO received a decent subscription of 25 times, indicating a degree of investor interest. The company's product diversity, widespread customer base, and consistent financial performance offer a positive outlook for the long term,” she says.
She suggests investors to remain cautious about the competitive landscape within the tyre industry and the potential challenges associated with being a smaller player. “Those who want to hold it long-term may keep a stop-loss issue price.”
Tolins Tyres raised ₹230 crore via IPO, which was a combination of fresh issue of ₹200 crore and offer for sale of ₹30 crore. The IPO, which started between September 9-11, was subscribed 25.03 times. The public issue subscribed 22.45 times in the retail category, 26.72 times in QIB, and 28.80 times in the NII segment.
On Kross’ listing, Nyati says, “This flat performance is likely influenced by other IPO listings and potential concerns specific to Kross Limited.”
“Despite a decent subscription of 17 times, the listing's lack of premium indicates a cautious approach from investors. While the company boasts strong fundamentals like backward integration, long-term client relationships, and consistent financial growth, the industry's relatively high valuation and potential challenges might have tempered investor enthusiasm,” she says.
“Investors who participated in the IPO may consider holding their shares while closely monitoring the company's performance and market conditions and keeping a stop loss at the issue price,” Nyati adds.
Kross garnered ₹500.00 crore via the IPO route, which comprised fresh issue and OFS of ₹250 crore each, was subscribed 17.66 times. The quota reserved for retail investors was booked 11.26 times, while QIB and NII categories were subscribed 24.55 times and 23.40 times, respectively, for which three-day bidding started on September 9.
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