Small- and mid-caps and a buzzing primary market have been the biggest draws for investors in recent months, even as sentiment in the broader market has been buffeted by geopolitical tensions, elevated crude prices and bond yields, and relentless FPI selling. Against this uncertain backdrop, mid-sized investment bank Equirus Capital has quietly built a strong IPO franchise, with an encouraging record of post-listing performance.
Over the past year, Equirus has been associated with seven mainboard IPOs, including the ₹22,562-crore NSE offering, and issues by Omnitech Engineering, GSP Crop Science, CMR Green Technologies, Lohia Corp, Lalithaa Jewellery and Steamhouse India. Excluding NSE, all six stocks are trading above their issue prices. Omnitech Engineering has emerged as the standout, gaining around 200%, while even CMR Green Technologies, the weakest performer, is up about 11%.
1) Equirus has expanded rapidly, but profits have not kept pace. Why?
We invested heavily last year in asset management, launched an NBFC and applied for a SEBI custody licence. We are also deepening our wealth management business, with products such as real estate and direct equities. These businesses require upfront investment in technology, processes and capabilities before they begin generating revenue.
We want to partner high-growth companies through their entire lifecycle. A company may initially need private equity, followed by M&A and access to capital markets, and eventually wealth management, lending and liquidity solutions for the promoter family. We want to build long-term relationships rather than participate in just one transaction.