Stocks of Hyderabad-based firms post listing gains, ride on buoyant market

Riding on a buoyant stock market, shares of several Hyderabad-based companies that made their debut in the market over the past few months through initial public offerings (IPOs) have displayed stellar performance by rewarding investors.

Since October 2020, several companies from Andhra Pradesh and Telangana hit the markets through IPOs and all of them have had strong listings.

Riding the bull market

The ₹6,480-crore IPO of Gland Pharma was one of the largest pharma sector IPOs in recent times. The stock has been in the limelight since its listing on the back of strong financial performance and demand spike in the healthcare sector.

Shares of Gland Pharma rose 128 per cent since its listing in November last year while Likhitha Infra scrip, which got listed in October 2020, has almost doubled since its debut in the market.

Most pharma stocks have seen strong upside since the Covid pandemic broke out last year. The BSE healthcare index has been ruling at a high. Recent healthcare listings of KIMS Hospitals, which raised ₹2,144-crore through its IPO, has gained since its listing in June this year.

On the back of the bullishness in the healthcare sector, several companies have lined-up their public offering. The Hyderabad-based diagnostic chain operator Vijaya Diagnostic Centre is the latest one to hit the market with its ₹1,895 crore IPO.

Two other companies from the region that got listed have also been doing reasonably well on the bourses post listing. MTAR Technologies and Dodla Diary have gained post their respective listings. MTAR’s IPO, a precision engineering solutions company with presence in the nuclear, defence and space and clean energy sectors, was subscribed over 200 times. Dodla Dairy, with presence across five States including Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra, gained 5 per cent since its listing.

Upcoming IPOs

Several other companies are in the process of securing approvals. While Gemini Edibles & Fats India (GEFIL), which promotes ‘Freedom’ brand of edible oil, has filed a DRHP for its ₹2,500 crore IPO, MedPlus Health Services recently filed preliminary papers with capital markets regulator SEBI to raise ₹1,639 crore through an IPO.