However, Gray Market is not very enthusiastic about the upcoming listing as the premium in the informal market is signaling a silent start for the listed companies.
Dilliveri, the new age logistics player, is exchanging hands for up to Rs 5 less than the issue price of Rs 487. However, the number of trades remained negligible, Gray Market sources said
The supply chain and logistics solutions provider’s initial public offering (IPO) of Rs 5,235 crore was open for subscription between May 11-13 as the company sold its shares for Rs 462-487.
The issue has been subscribed 1.63 times overall, thanks to strong bidding from QIBs. However, retailers, HNIs and employees have closed the bidding process, part of which has not been fully subscribed.
Abhay Doshi, co-founder of Unlisted Arena, said there were big concerns about the company’s valuation, which kept investors away from the issue and the subscription figures were clear.
“Following the recent collapse of startup stocks and new-age companies, investors remain skeptical of the issue,” he added. “Investors don’t want to burn their hands anymore.”
Another listed candidate, Venus Pipes and Tubes, is controlling the premium of Rs 35-40 or 10-12 per cent in the gray market as compared to the issue price of Rs 326. This is a hint of a soft listening pop
The manufacturer and exporter of stainless steel pipes and tubes has raised Rs 165.42 crore through its IPO, selling between April 11-13 at a price of Rs 310-326 crore.
The issue has been subscribed a total of 16.31 times. Retailers led bidding with more than 19 subscriptions for their share, with QIB and HNI subscriptions being 12 times and 15.7 times subscriptions, respectively.
Doshi says the company could see a light list pop up for higher subscriptions. “However, the small size of the issue has increased the subscription status for the company.”
Other market experts are also expecting mixed reactions for the upcoming debut, following the silent pop provided by it.
Despite the conservative assessment.
Vijay Singania, chairman of Tradesmart, said Indian markets have recovered over the past few days, giving some relief to traders and investors. He hopes the recovery in the secondary market will support the impending problems.
“With a weak list and the subsequent collapse of the LIC Post list, market participants were skeptical of the list of other issues,” he added, lowering high expectations.