Bumper listing for Devyani; Other IPOs disappoint

Devyani International's stock ended 12% lower than the listing price but still remained higher than the issue price

Out of four IPOs that were listed in the equity markets on Monday, three listed above their issue prices while only Windlas Biotech listed below the issue price.

“We believe ongoing volatility in the market and persistent selling pressure in midcap and smallcap for the last couple of days weighed on listing gains of these stocks”, Binod Modi from Reliance Securities said.

Devyani International, franchisee for Pizza Hut, KFC and Costa Coffee listed at a 56 per cent premium to the issue price. The stocks were listed at Rs 141 apiece on BSE and 140.90 on NSE. However, the stock ended 12 per cent lower than the listing price but still remained higher than the issue price.

While Devyani had a bumper listing on the bourses, Krsnaa Diagnostics and Exxaro Tiles had subdued listings. While Krsnaa is listed at a premium of 7 per cent at Rs 1,025 against the issue price of Rs 954, but almost 20 per cent lower than the grey market premium which was around Rs 1,254-1,274 on the day before the listing of the IPO.

Exxaro was listed with a premium of 5 per cent of the issue price. It listed on both exchanges- BSE and NSE at Rs 126 a share against an issue price of Rs 120.

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Of the four companies that were listed on Monday, only Exxaro Tiles ended the day’s trading in the green, up 4.96 per cent from the opening price.

The disappointment was with Windlas Biotech. It listed at Rs 437 on NSE and Rs 405 on BSE, and further fell on both exchanges.

“The grey market premiums and listing day prices (premium or discount) were also in the same order, starting with Devyani International and ending with Windlas Biotech Ltd, clearly stating the demand and supply of the companies and number of times the IPOs were subscribed were the key reason why one company was listed at a 55 per cent premium and the other at a 5 per cent discount”, Gaurav Garg from CapitalVia Research Limited.

Meanwhile, both the exchanges ended in the green. While Sensex was up 0.26 per cent at 55,582.58, Nifty was up 0.21 per cent at 16,563.05 at the end of trading on Monday.

“Indian markets started mixed tracking Asian markets as China economic data disappointed with retail sales rising 8.5 per cent in July as compared with a year ago, far lower than the 11.5 per cent forecasted. Also, worries around geopolitical concerns in Afghanistan kept investors on the bay. During the afternoon session, markets turned positive as buying in Energy, Oil & Gas and Metal sectors lifted the indices”, Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said.