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Profit booking in broader markets as investors flock to IPOs

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Shillong, November 22: The broader market witnessed some profit booking as investors’ focus shifted to the primary market, marked by a set of IPOs scheduled for this week, says Vinod Nair, Head of Research at Geojit Financial Services.

Despite FED adopting a cautious stance in its minutes and refraining from indicating a rate cut, the market recovered from the day’s correction and ended with mild gain, he said.

On Wednesday, Tata Technologies’ Rs 3,042.51-crore initial public offering (IPO) commenced. This is the Tata Group’s first public offering in almost 20 years.

Investors have purchased 19 crore equity shares against the 4.5 crore offer size, resulting in a 4.22 times subscription rate, says Vaibhav Vidwani, Research Analyst, Bonanza Portfolio.

According to subscription statistics available with the exchanges, retail investors had bid 3.48 times their quota of shares, while the fraction reserved for high-net-worth individuals (HNIs) was subscribed 6.77 times and qualified institutional buyers (QIB) bid 3.56 times.

On the second day of bidding, the Indian Renewable Energy Development Agency’s (IREDA) initial public offer (IPO) was subscribed 2.83 times, with offers for 133 crore shares against the issue size of 47.09 crore.

Qualified institutional purchasers bid 1.35 times their permitted part, retail investors subscribed 2.94 times their quota, while non-institutional buyers chose 4.56 times, he said.

BPCL, Cipla, NTPC, Infosys, and Power Grid Corporation were the top gainers on the Nifty, while IndusInd Bank, Hindalco Industries, Kotak Mahindra Bank, Adani Enterprises, and Adani Ports were the top losers. (IANS)

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