IPO activity remains muted with only one issue opening next week; Three lists line up

The primary market is set for a quiet week ahead, with only one IPO opening, although three companies are set to list below offerings that close next week. The gray market premium (GMP) for all upcoming listings is currently at zero, reflecting flat debut expectations, with investor sentiment appearing cautious.

Only one IPO is slated to open next week

Leapfrog Engineering Services is about to open its only public issue, which is about Rs. 89 crore is the SME IPO to raise.
The IPO will open for subscription on April 23 and close on April 27, with listing expected on April 30 on the BSE SME platform. The price band has been fixed at Rs 21-23 per share.

The issue is a combination of fresh issue and offer for sale, with Rs. 79.6 crore coming from fresh equity issue and about Rs. 8.9 crore is received through OFS.

Given the SME structure, the entry threshold remains high. Retail investors will need to bid for a minimum of 12,000 shares, which at the upper price band will be around Rs. 2.76 would translate into an investment of lakhs.

Leapfrog Engineering operates in the engineering services and EPC space, offering end-to-end solutions in sectors such as oil and gas, pharmaceuticals, food processing and metals.

Three IPO listings scheduled

While fresh issues will be limited, the market will see three listings in the coming week – Mehul Telecom, Cityus Transnet Investment Trust (InvIT), and Property Share Investment Trust (Propshare Celestia).

All the three IPOs opened and closed last week and are now moving towards listing. However, gray market trends remain flat for all three, with GMP currently at zero, reflecting muted listing expectations across the board.

The lack of premium in the gray market suggests limited speculative interest and cautious investor participation, particularly in SME and InvIT offerings.

Analysts note that while the broader equity markets have shown resilience, primary market enthusiasm has been selective, with investors focusing on quality and valuation comfort rather than chasing listing gains.

Outlook: Possibility of selective participation

With only one IPO on offer and a flat GMP signal on upcoming listings, the near-term IPO pipeline appears slow.
That said, activity is expected to increase gradually, especially if market conditions remain stable and larger mainboard issues enter the pipeline.

For now, the focus remains on how the upcoming listings perform, as that will set the tone for investor appetite in the primary market over the next few weeks.