The primary markets gathered steam in the month of May despite heightened volatility and uncertainty in the secondary markets. A total of eight companies raised more than Rs 30,000 crore by launching initial public offerings (IPO) in May. These companies spanned across industries, from insurance to specialty chemicals and from financial services to new-age tech companies.
In May, a total of eight companies launched their IPOs, with six among these also getting listed during the month. Two IPOs from the month of April also got listed in May.
Meanwhile, Indian markets saw only 16 IPOs during January 2022 – March 2022 period as compared to 23 IPOs in the corresponding period of last year. Hence, the proceeds raised through IPOs also declined 60% YoY during this period.
Let’s take a look at the companies that made Dalal Street debut in May 2022.
|Company||Listing Date||Issue Price
|Listing Day Close (Rs)||Listing Day Gain/Loss||Performance as of May 30|
|Campus Activewear||May 9||292||355||378.6||29.66%||22.87%|
|Rainbow Children’s Medicare||May 10||542||506||450.1||-16.96%||-8.815|
|Life Insurance Corporation of India||May 17||949||867.20||875.45||-7.75%||-11.79|
|Prudent Corporate Advisory Services||May 20||630||660||562.7||-10.68%||-5.61%|
|Venus Pipes & Tubes||May 24||326||335||351.75||7.9%||1.11%|
|Paradeep Phosphates||May 27||42||43.55||43.90||4.52%||0.23%|
Out of these eight listings, five companies got listed at a premium, while the other three got listed at a discount.
The shares of footwear manufacturer Campus Activewear made a decent debut on Dalal Street on May 9, listing at a premium of over 21% to the issue price. The shares saw a rise of 29.66% on the first day of trading.
The Rs 1,333 crore worth Campus Activewear IPO was opened between April 26 to 28 at a price band of Rs 278 – 292. On May 30, the stock closed more than 22% higher than the IPO price at around Rs 359 apiece on the BSE.
Rainbow Children’s Medicare
Rainbow Children’s Medicare shares were listed at a discount of over 6% to the issue price at Rs 506 apiece. The stock closed nearly 17% lower than the issue price on the first trading day.
The shares of Rainbow Children’s Medicare IPO are around 9% lower than the issue price at around Rs 497 on the BSE.
Life Insurance Corporation of India
Life Insurance Corporation of India (LIC) came the largest ever IPO in the Indian markets in May 2022. The Rs 21,000-crore IPO of the state-run insurance behemoth made a weak listing on bourses on May 17. LIC shares were listed at Rs 867.20 apiece on the BSE, a discount of more than 8% to the issue price of Rs 949.
LIC IPO was opened from May 4 to May 9 at a price band of Rs 902 – 949. The shares of LIC are still 11.8% below their issue price at around Rs 837 on the BSE.
Prudent Corporate Advisory Services
Prudent Corporate Advisory Services IPO shares made a debut with over 4% on May 20. However, the shares declined after listing and closed more than 10% lower than the issue price for the day. The stock is now down over 5.61% from its issue price at around Rs 601 apiece on the BSE.
Venus Pipes & Tubes
The shares of Venus Pipes & Tubes were listed at Rs 335 apiece against the issue price of Rs 326 on May 24. The shares rose 7.9% to close at Rs 351.75 on its listing day.
The Rs 157-crore worth Venus Pipes & Tubes IPO was opened during May 11 – 13 at a price band of Rs 310 – 326. The stock price trades near its issue price at around Rs 330.
On May 24, Delhivery IPO shares made a debut at Rs 493 apiece against the issue price of Rs 487 and rose further to close more than 10% higher than the issue price. The stock gained value over the days and currently trades at around Rs 522, gaining over 7.2% from its issue price.
Paradeep Phosphates got listed at Rs 43.55 as compared to the IPO price of Rs 42. On its listing day, May 27, the stock rose further to close at Rs 43.90. The stock trades near its IPO price of Rs 42.
Paradeep Phosphates IPO raised Rs 1,394 crore which was opened during May 17-19. The company sold its shares at a price band of Rs 39 – 42 in the IPO.
Luxury and premium watch retailer Ethos Ltd made a weak debut on Dalal Street on May 30. The shares got listed at Rs 825.00 apiece on the National Stock Exchange, a discount of 6.04% to the issue price of Rs 878. The stock opened at a discount of 5.47% at Rs 830 on the BSE, making it the last listing for the month of May.
Ethos IPO raised Rs 468 crore through the public issue which was opened for subscription from May 18-20 at a price band of Rs 836 – 878.
Disclaimer: This article is for information purposes only and should not be considered as stock recommendation or advice to buy or sell shares of any company. Investing in the stock market can be risky. It is therefore advisable to research well or consult an investment advisor before investing in shares, derivatives or any other such financial instruments traded on the exchanges.