Amid the raining IPOs, Dalal Street is set for the debut of three more players- Urban Company, Shringar House of Mangalsutra and Dev Accelerator- on Wednesday, September 17. Interestingly, all the three listing bound companies have seen some corrections in their grey market premiums (GMP) ahead of their stock market debut.
All these three IPOs were open for bidding September 10 and September 12, cumulatively raising more than Rs 2,444.3 crore from investors. Three companies are set to deliver decent gains and investors can expect double digits gains from all the listing-bound companies, if one goes by the latest signals from the unofficial market.
Urban Company, the largest issue among the three, is commanding a grey market premium of Rs 50-51 apiece, suggesting a listing pop of 50 per cent for the investors against the issue price of Rs 103 per share. Its GMP stood around Rs 68-65 when the issue had closed for bidding. The company raised a total of Rs 1,900 crore. The issue was overall booked 103.63 times during the bidding.
Shringar House of Mangalsutra, which sold its shares for Rs 165 apiece to raise a total of Rs 400.95 crore, is commanding a grey market premium of Rs 22-23 per share. The latest GMP signals a nearly 13 per cent listing pop for the investors. Its GMP stood around Rs 31 apiece, before the allotment was finalized. The issue was overall subscribed more than 60 times.
Dev Accelerator has seen its grey market premium drop to Rs 6-7 from Rs 10 over this weekend. The latest GMP signals a 10-11 per cent gain for the investors over the issue price. The Ahmedabad-based coworking solutions player raised a total of Rs 143.35 crore via IPO by selling its shares of Rs 61 apiece. The issue was booked nearly 64 times during the three-day bidding.
Market participants are also positive on these issues. Prashanth Tapse, Senior VP (Research) at Mehta Equities said, “We recommend allotted investors to ‘hold’ the stock from a long-term investment perspective, keeping in mind the inherent market risks. For non-allotted investors, a ‘wait and Watch’ approach is advisable to assess any post-listing dip as a potential entry point.”
Commenting on Urban Company IPO, Shivani Nyati, Head of Wealth at Swastika Investmart said that company is showing growth prospects, expanding service base, and improving profitability. She suggested investors are advised to book partial profit and hold the rest.
“Shringar House of Mangalsutra’s IPO is well-positioned for a promising listing, making it an attractive opportunity for investors seeking exposure to the jewelry segment and investors may book half the profit and hold the rest,” she added.