Kamath’s comments came following the listings of Ola Electric, Unicommerce, and FirstCry, whose performances have been varied, but on the positive side.
“Congrats to Ola Electric, Unicommerce, and FirstCry on the listing. Based on the listing, it looks like investors are happy. If our markets have to grow, we need more homegrown companies to list and also leave something on the table for IPO investors,” said Kamath.
Further, Kamath noted that IPOs doing well are good for the markets because they incentivise more companies to consider an IPO, and attract more retail and institutional investors.
“We also need more IPOs because, as Ananth Narayan of Sebi recently pointed out, we seem to have a problem with the supply of new securities. This is a problem at a time when domestic flows are increasing,” he said.Ola Electric, despite making a subdued debut at the bourses a few days ago, rallied as much as 70% since the listing. Meanwhile, Unicommerce made a multibagger debut at the exchanges on Tuesday. The stock listed at Rs 235 on the NSE as against an issue price of Rs 108 per share.The IPO, which is entirely an offer for sale (OFS) of 2.56 crore shares, received overwhelming response from investors with an overall subscription of over 160 times at close. This was driven by strong interest from non-institutional and institutional investors.
Brainbees Solutions, which operates and owns FirstCry, also made its debut on Tuesday with a 34% premium to the issue price. The shares then jumped further 13% post the listing, indicating positive investor sentiment.
“While Firstcry’s market leadership and strong brand position are undeniable, investors should remain cautious about the company’s path to profitability. The reliance on third-party manufacturers and negative cash flows remain areas of concern that require close monitoring,” said Shivani Nyati of Swastika Investmart.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
