Three IPOs Attract Massive Rs 1.22 Lakh Crore in Bids, Surpassing Rs 2,400 Crore Target
Urban Company, Shringar House, and Dev Accelerator's IPOs collectively received bids worth Rs 1.22 lakh crore against their combined target of Rs 2,400 crore. Urban Company led with Rs 1.13 lakh crore in bids for its Rs 1,900 crore offering, oversubscribed 59.5 times. Dev Accelerator's IPO was oversubscribed 35.8 times, while Shringar House saw 47.4 times oversubscription. The allotment is scheduled for Monday, with listing set for Wednesday. This surge is part of a broader trend in Indian capital markets, with over Rs 1.5 lakh crore already raised through IPOs this year.
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In a remarkable display of investor enthusiasm, three Initial Public Offerings (IPOs) have collectively garnered bids worth Rs 1.22 lakh crore, significantly overshooting their combined target of Rs 2,400 crore. The IPOs in question belong to Urban Company, Shringar House, and Dev Accelerator, each experiencing substantial oversubscription.
Urban Company Leads the Pack
Urban Company, the standout performer among the three, dominated the bidding process with an impressive Rs 1.13 lakh crore in bids for its Rs 1,900 crore offering. The company received applications for nearly 1,000 crore shares against the 10 crore shares available, priced at Rs 103 per share. This overwhelming response underscores the strong investor interest in Urban Company's business model and growth prospects.
Dev Accelerator and Shringar House See Strong Demand
Dev Accelerator's IPO was subscribed 35.8 times, attracting Rs 5,124 crore in bids for its Rs 143 crore issue. Similarly, Shringar House witnessed robust demand, with its offering oversubscribed by 47.4 times, pulling in Rs 16,927 crore in bids for its Rs 357 crore issue.
IPO Details and Next Steps
| Company | Issue Size (Rs Crore) | Subscription (Times) | Bids Received (Rs Crore) |
|---|---|---|---|
| Urban Company | 1,900 | 59.5 | 113,000 |
| Dev Accelerator | 143 | 35.8 | 5,124 |
| Shringar House | 357 | 47.4 | 16,927 |
The strong market response has led to Urban Company commanding a premium of over 40% on the final day of bidding. The allotment for these IPOs is scheduled to be finalized on Monday, with the listing set for Wednesday.
Broader IPO Market Trends
This surge in IPO activity is part of a larger trend in the Indian capital markets. The country has already raised over Rs 1.5 lakh crore through IPOs. The pipeline remains robust, with the Securities and Exchange Board of India (SEBI) having approved issues worth Rs 1.14 lakh crore. Additionally, Rs 1.64 lakh crore worth of issues are pending approval.
Looking ahead, the IPO market shows no signs of slowing down. Excluding Jio, there are IPOs worth Rs 2.8 lakh crore lined up, indicating continued investor appetite and company interest in public listings.
The success of these three IPOs, particularly Urban Company's stellar performance, highlights the current bullish sentiment in the Indian stock market and the growing confidence of both domestic and international investors in Indian companies across various sectors.
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