IPO Market Heats Up with Dual Offerings
This week presents a dynamic landscape for Indian primary markets with several listings scheduled. Currently, the Fujiyama Power IPO and the Capillary Technologies IPO remain open for subscription, attracting significant attention from both institutional and retail investors. Market experts indicate that while both issues have garnered decent interest, their investment appeal varies significantly based on sector, valuation, and target investor profile.
Fujiyama Power IPO: An ESG-Compliant Infrastructure Bet
Analysts point out that the Fujiyama Power IPO is moderately priced with a clear focus on industrial growth, making it particularly attractive to long-term infrastructure funds and investors who prioritize ESG (Environmental, Social, and Governance) considerations. Bhavik Joshi, Business Head at INVasset PMS, elaborated on the company's positioning, stating that Fujiyama Power Systems Ltd is entering the market at a pivotal moment when rooftop solar adoption is rapidly accelerating across Tier II, Tier III, and rural India.
He highlighted the company's strength as a complete solutions provider, which grants it a meaningful presence across the entire solar value chain. Delving into the financial trajectory, Joshi noted that from FY23 to FY25, revenues have surged from ₹665 crore to ₹1,550 crore. This scale expansion has been accompanied by meaningful margin improvement due to operating leverage, a trend that early FY26 numbers suggest is continuing.
However, Joshi issued a note of caution regarding the valuation. "The proposed valuation leaves limited room for near-term mispricing; on FY25 earnings, the issue prices the company at a premium to several established solar peers, and even after annualising FY26 Q1 performance, the implied multiples remain demanding," he explained. Consequently, he believes the offer appears fully valued, making it more suited for investors with a medium- to long-term perspective rather than those seeking immediate listing gains.
Capillary Technologies IPO: A High-Premium Tech Story
In contrast, the Capillary Technologies IPO is commanding a greater valuation premium, driven by high demand within the technology sector and its strong export focus. Bhavik Joshi commented that at the upper end of the price band, the implied multiples are steep, even on an annualised FY26 basis. This pricing reflects market expectations of sharp margin expansion and durable cash-flow visibility—assumptions that will require consistent performance and disciplined cost management to materialize.
Joshi acknowledged the company's compelling strengths, including its differentiated AI-powered offering, global footprint, and improving financial trendline. For investors with a long-term horizon, this narrative may be interesting. However, he warned that the lofty valuation leaves little cushion for execution risk. "This makes it more appropriate for informed, high-risk or surplus-capital investors. Conservative or near-term–focused investors may prefer to wait for clearer earnings visibility post-listing," Joshi advised.
Grey Market Premium (GMP) Trends: A Tale of Two IPOs
The grey market sentiment further underscores the differing market reception for these two IPOs.
Fujiyama Power IPO GMP: According to investorgain.com, the grey market premium for Fujiyama Power was ₹0. This indicates that the shares were trading at their issue price of ₹228, with no premium or discount. Analysis of the past 11 sessions shows no significant changes in this trend, with experts anticipating a flat performance until the listing day.
Capillary Technologies IPO GMP: The scenario is more optimistic for Capillary Technologies, with its GMP today at ₹29. Considering the upper end of the IPO price band at ₹577, this premium indicates an estimated listing price of approximately ₹606 per share, which is 5.03% higher than the IPO price. The GMP has shown an upward trend over the past nine sessions, leading experts to anticipate a solid listing. The maximum GMP recorded so far has been ₹50.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
