IPOs are back in India and the day-1 returns are mouth watering!

July was a great month for Indian companies looking to raise money via exchange listings. The equity market has been near an all-time high and the timing for equity raise is perfect.

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6 companies have come with an equity offering this month. The last IPO application for this month closes today and next week, 4 companies are lined up. Let's take a look at the results of some of these IPOs.

GR Infra Projects -
Issue Price: 837
Closing Price on day 1: 1747.10
Day 1 return: 108.7%

Clean Science and Technology Ltd -
Issue Price: 900
Closing Price on day 1: 1585.25
Day 1 return: 76.1%

Zomato -
Issue Price: 76
Closing Price on day 1: 126
Day 1 return: 65.8%

Tatva Chinta Pharma Chem Ltd -
Issue Price: 1083
Closing Price on day 1: 2312.2
Day 1 return: 113.5%

Glenmark Life Sciences -
Issue Price: 720
Oversubscription: 44.17x
Listing next week, GMP, Expected Return: 145, 20%

Rolex Rings -
Issue Price: 900
Oversubscription: 103.5x till now
Listing next week, GMP, Expected Return: 550, 61.1%

The above returns are insane! Of course, getting an allotment in these shares, if you are a retail investor is a lottery. Also, a retail investor can only apply for INR 15k worth of shares or ~$200.

The idea is not just to share these returns but also prevent people from investing in 4 companies opening up for subscriptions next week -

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The only name worth looking at in the above list is Devyani International as it is one of the biggest operators of Yum Brand restaurants in India, as well as all the restaurants you see on airports - KFC, Pizza Hut, Vaango, Food St. etc. While the company has been posting losses during the last 3 years, the list of lead managers for this IPO is bankable.

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Another company worth looking at is Windlas Biotech Ltd. The company has some marquee customers, lead managers are ok but the financials are worth looking at in more depth.

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I recommend staying careful with the IPOs coming out next week. Do not get influenced by July IPO returns and wait to subscribe on the last day after seeing overall market interest. 2 names look interesting but I still recommend caution.

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