Following a period of market stress caused by the pandemic, many companies are expected to list in the coming days. Many of them have a hefty grey market premium, or GMP, as they prepare to record. GMP is the expected listing gain from the IPO after listing.
The IPO frenzy continues, and the investors are leaving no opportunity. By trying to mobilize 14,600 crores, this week marks one of the busiest weeks for the IPOs.
Why the sudden Rise in the IPO Listings?
There is a significant rise in the number of companies being listed on Indian bourses. Industry specialists point towards several reasons that may have contributed to the dramatic increase.
The easy availability of funds globally, substantial listing gains, and the stock’s attaining greater heights have prompted private investors and merchant bankers to take companies public.
According to stock market experts, strong promoters are attempting to profit on the solid bounce in Indian indices following Covid-19.
Those strong promoters who planned to list their company began launching initial public offerings to benefit from the market’s post-COVID rebound momentum.
In addition, a segment of the market has pulled money out of stocks owing to the third wave of Covid-19 concerns. Such investors invest in Initial Public Offerings (IPOs) and profit from them.
Nuvoco Vista, owned by Karsanbhai Patel, is the fifth largest cement company in India, with an extensive base in Eastern India.
Karsan Bhai Patel is also the owner of Nirma detergent. The IPO for the company closes today, August 11, 2021.
The current shares are being issued at a price band of 560-570 per share. Successfully raising 5,000 crores would make it the second-largest IPO in 2021 after Zomato.
This is the first such offer made by a cement company in the last few decades.
The previous IPO issued by a cement company was in 2006 by J&K Cement. According to a report published by IIFL, the valuation is quite reasonable and investing is recommended.
Devyani International, the largest franchisee of Yum Brands in India, stands as the leading franchise operator of Pizza Hut, KFC, and Costa Coffee in India as well as globally. They are all set to finalise their share allotment today.
The company received an overwhelming oversubscription. The current trend displays a premium of 50–60% in the grey market.
The ineligible investors will receive a refund on Thursday, August 12, and equity shares will be credited on Friday, August 13.
They will start trading from August 16, 2021, via the BSE and NSE. Devyani International is also the owner of several domestic restaurant chains, including Vaango, Masala Twist, Amreli, etc.
corresponding to the current lifestyle and outside food habits, the company is likely to capture growth.
Car Trade IPO
The tech-enabled auto-listing company has made its subscriptions available on August 9 and plans to close on August 11.
The shares are trading at a 450 per equity share premium in Grey Market Premium (GMP).
The IPO had an issue size of Rs 2,998.51 crore and consisted entirely of an offer for sale (OFS) that stood at the same value.
This effectively means the company is expected to list at around Rs 300 over the issue price between Rs 1,585 and Rs 1,618.
The IPO allotments of other companies to look for include Chemplast Sanmar, Krsnaa Diagnostics, Exxaro Tiles, etc.