Primary mkt roars back as 3 of 4 IPOs sold out on Day One

Dalal Street is on fire. Three out of four share sales that opened on Wednesday were oversubscribed on the first day itself, a feat last seen 27 months ago, with high net-worth individuals (HNIs) and small retail investors leading the charge.

- Mayur Bhalerao

The initial public offering (IPO) of Tata Technologies Ltd, the first Tata group company to list after 19 years, attracted maximum investor interest, witnessing a subscription of 6.5 times. Gandhar Oil Refinery (5.66 times) and Flair Writing Industries (2.3 times) also attracted substantial interest, while Fedbank Financial Services, a unit of Federal Bank, saw a relatively tepid response, with only 0.39 subscription on Day One.

On 4 August 2021, Devyani International, Windlas Biotech, Exxaro Tiles and Krsnaa Diagnostics were subscribed 1.93 times, 2.52 times, 4.1 times and 1.55 times, respectively.

Demand for the shares currently on offer is likely to remain elevated, given the grey market premium of 77% in Tata Tech, 38% in Gandhar, 23% in Flair, 4% in FedFina and 30% in Indian Renewable Energy Development Agency (Ireda). The Ireda share sale opened on Tuesday.

Moderate pricing of these issues attracted HNI and retail interest, analysts said.