These companies include India Inc. and Dalal Street: from India’s top industrialist Mukesh Ambani to Big Bull Rakesh Jhunjhunwala and cricketing Big MS Dhoni.
Market observers say a frenzy is already building in anticipation of an upcoming list of these stocks. Investors rush to the unlisted market to buy these stocks before the price unlocking begins.
Some of these companies have strong balance sheets and credible financial arrangements to support this frenzy.
ETMarkets.com has compiled a list of unlisted names that have been buzzing in the gray market in recent weeks, with discussions that they could be listed in the next 18 months.
HDB Financial Services (HDBFS) | Current unlisted market share price:
With the strong parentheses of HDFC Group, HDB Financial Services is a leading NBFC stock that is buzzing in the gray market and seeing huge demand from investors. Incorporated in 2008, NBFC caters to both retail and commercial clients. It has a well-established business of loans, fee-based products and BPO services with a strong capital base. It has been recognized by CRISIL and CARE ratings with an ‘AAA’ rating for long term loans and bank benefits. Its short-term loans and CPs are rated A1 +, which makes it a reliable financial institution.
Take the expert: Sagar Shah of Ascent Wealth Advisors believes this is a good NBFC bet. Despite the costly appraisal, it is ready to grow with a clean and strong balance sheet.
“People are buying this stock at a premium in the unlisted market. The chances of getting a strong over-subscription in an IPO are very high. As such, there is a surge, ”he said.
Nazara Technologies | Current Unlisted Market Share Price: Rs
Mumbai-based Nazara Technologies is one of the leading mobile game companies operating in India, West Asia, Africa, Southeast Asia and Latin America. Its activities include membership, premium and sports business.
The company has separate subsidiaries called Next Wave Multimedia and Nodwin Gaming.
Big Bull Rakesh Jhunjhunwala is supporting the initiative, which is credited with some of the most popular games on the Google Play Store, such as the World Cricket Championship, the Little Bhim Race and the Motu Patlu game.
According to the company, the profit for FY17-18 has come down to Rs 1 crore not due to one-time cash and due to exceptional expenses including group share payment and employee stock options.
Expert Acceptance: Dinesh Gupta of Unlisted Zone says that the company has lost some of its luster lately. However, it has been aggressive in its acquisition, having recently acquired a Rs 7.5 crore stake in India’s leading quiz app Sports Unity.
Tamil Nadu Mercantile Bank (TMB) | Current Unlisted Market Share Price: Rs
Formerly known as The Nadar Bank, the lender has more than 500 branches and 12 regional offices across the country. All branches are computerized and interconnected. Coming from Tamil Nadu, the bank has strong roots in South India.
Expert Acceptance: The stock has received mixed reviews from market experts. Sandeep Ginodia TMB of Abhishek Securities has found a valuable bet. “The stock is available at 1.25 times the book price. A strong debt book is keeping estimates high, ”he said.
Gupta of Unlisted Zone said that the developments of Yes Bank and RBL Bank have killed this stock in the unlisted market because there are better bets in the market.
Reliance Retail | Current Unlisted Market Share Price: Rs.600
Reliance Retail, a part of Reliance Group, is the largest retail company in India. The initiative, led by Mukesh Ambani, operates Reliance Fresh, Reliance Smart and Reliance Market stores and has a turnover of Rs 1.3 lakh crore. It operates all Reliance Digital, Mini Express stores and Geo stores.
In addition, it runs Reliance Trends, Trends Women, Reliance Jewels, Reliance Footprint and fashion websites.
As of March 31, 2019, Reliance Industries had 10,415 stores in 6,600 cities and towns across India with a total area of over 22 million square feet, according to FY19’s annual report.
Expert Acceptance: Shah of Ascent Wealth believes that the stock valuation is much higher than that of its counterpart Avenue Supermarket. Reliance Retail is operating on a huge scale, which puts constant pressure on margins. “The company has very strong promoters. Retail stories are going to prosper in India. ”
He and Xenodia have given the stock a thumbs-up from a long-term perspective.
Studds Accessories I The current unlisted market share price: Rs
Studds is one of the largest two-wheeler helmet manufacturers in the world. Proud of safety, comfort and style, it has a 25 per cent market share in India.
Incorporated in 1983, the company has two manufacturing facilities spread over 6 acres in Faridabad, Haryana.
The company has a presence in 39 countries and has launched 36 new products in seven different sizes in the last three years. The company manufactures two-wheeled accessories such as jackets, gloves and goggles. The company has already filed DHRP with SEBI.
Expert Acceptance: Gupta said the new motor vehicle would be the biggest beneficiary of the law, Stads7 Helmets are in high demand in the market and the company has the largest market share. He noted that non-ISO-certified helmet manufacturers would soon face heavy fines.
Chennai Super Kings (CSK) Current Unlisted Market Share Price: Rs
The listed shares of this IPL franchise are attracting a lot of attention amid rumors about the possible retirement of MS Dhoni. CSK, the most successful franchise in the IPL, has won the title three times. The unlisted scrip traded in the range of Rs 12-15 in the last week of November, 2018 and then reached Rs 30-35 in mid-April 2019.
Expert Acceptance: Zinodia and Shah find the stock very attractive. Ginodia says the company’s FY19 PAT was in line with expectations. Shah, however, suspects that the brand value will go down after Dhoni’s retirement But, he, too, finds stock performance equally.