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The three listings follow the companies’ thoroughly chased IPOs that concluded last week, with multi-fold subscription across all investor categories. The overall bookings for these IPOs stood in the broad range of 60-104 times the equity on offer.  

The IPO of Urban Company was the largest among the three, with an issue size of Rs 1,900 crore.

Under the IPO, shares were available for bidding in a price band of Rs 98-103. The issue comprised fresh equity worth Rs 472 crore and an offer-for-sale (OFS) to the tune of  Rs 1,428 crore. 

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The issue witnessed overwhelming demand, sailing through with an overall subscription of 103.6 times.

ALSO READ: Upcoming IPOs: SEBI clears public issues of Pine Labs, Hero Motors, Orkla India and three others

Under the IPO, Dev Accelerator shares were available for bidding in a price band of Rs 56-61. This IPO was entirely fresh issuance worth Rs 143.3 crore, making it the smallest among the three IPOs.

The IPO  drew strong investor participation, clocking in at 64 times subscription.

Shringar House of Mangalsutra’s IPO, where shares were available for bidding in a price band of Rs 155–165, comprised fresh issuance to the tune of Rs 400.9 crore. 

The public offer was subscribed 60.3 times the equity on offer, underscoring strong investor appetite.

All eyes on listings at 10 am

With all three IPOs seeing robust demand during the subscription phase, the market will be closely watching their listing performance on Wednesday.

What is an IPO listing?

An IPO listing is the process where shares of a company that has just completed its IPO are officially admitted to trade on a stock exchange. 

Once listed, investors who were allotted shares  as well as new investors can deal in these securities just like any listed entity on Dalal Street. 

How is the listing price of an IPO decided?

The listing price is influenced by factors such as IPO price band, overall IPO demand, market conditions and investor sentiment.

However, there is no guarantee that an oversubscribed IPO will make a strong debut, and vice versa. At the end of the day, markets are unpredictable, and so are IPO listings.

Who decides the listing price?

The listing price of a company’s stock on exchanges is determined mainly by market forces on the day of listing. 

There’s no fixed issue price in a listing.

Instead, existing shareholders sell and trade subsequently directly in the open market.

Bourses use a pre-opening auction to discover the listing price based on buy and sell orders, just like normal listed scrips.

What does IPO subscription mean?

IPO subscription refers to the number of times the shares offered in the IPO were bid for by investors. 

For instance, a 60x subscription means demand was 60 times higher than the shares on offer. 

Can allottees sell IPO shares on listing day?

Investors allotted shares in an IPO can sell them as soon as the stock starts trading on the listing day. 

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