This week is going to be quite quiet in terms of raising new funds in the primary market, because no mainboard IPO is opening for subscription. However, investor activity will continue on the SME platform, where a new IPO will open this week, along with some listings.
This is happening at a time when the market is witnessing a sharp decline and slow recovery. At the same time, with the hopes of an early resolution of the ongoing dispute between Iran and America diminishing, oil prices are also increasing rapidly.
Amba Auto Sales & Services IPO
The initial public offering (IPO) of Amba Auto Sales & Services, the authorized dealer of Bajaj Auto and LG Electronics India, will open for subscription on April 27 and will close on April 29. The company aims to raise Rs 65.12 crore by issuing 48 lakh new shares. The price band of these shares has been fixed at Rs 130-135 per share, which means that the entire amount received from it will go to the company itself. Investors can bid for two lots of at least 1,000 shares each. This company works as an authorized dealer of automobiles and consumer electronics.
It sells Bajaj Auto’s new two-wheelers and commercial vehicles as well as provides after-sales services such as repairs, spare parts, lubricants and accessories. According to Investorgain, gray market trends remain quite sluggish. The unlisted shares of the company are trading at zero gray market premium (GMP).
These companies will be listed
If we talk about listing, then this week the shares of Adisoft Technologies will be listed on 30th April. The company’s Rs 74 crore SME IPO received a decent response from investors during the three-day bidding process.
At the upper limit of the price band, the minimum investment for retail investors is Rs 2.75 lakh. This makes it strong in the SME segment, where the investment amount is generally higher. The gray market premium of around 9% indicates that the shares are expected to see little upside at the time of listing. This sluggish premium is being seen at a time when volatility in the overall market and withdrawal of foreign investors has reduced the risk appetite of investors.
Leapfrog Engineering Services IPO
The Rs 89 crore IPO of Leapfrog Engineering Services will close on April 27. The price band has been fixed at Rs 21-23 per share. The issue is a mix of fresh issue and offer-for-sale, of which Rs 79.6 crore will come from fresh equity and about Rs 8.9 crore will come through OFS. Given the SME structure, the entry bar is quite high. Retail investors will have to bid for at least 12,000 shares, which means they will have to invest around Rs 2.76 lakh at the upper price band. Leapfrog Engineering works in the field of engineering services and EPC (engineering, procurement and construction) and provides end-to-end solutions in sectors such as oil and gas, pharmaceutical, food processing and metals.
Citius Transnet InvIT Listing
Meanwhile, Citius Transnet Investment Trust is going to be listed on BSE and NSE on 29 April (Wednesday). This is happening when its Rs 1,105 crore InvIT IPO was subscribed more than 10 times at the price band of Rs 99100 per unit. The gray market premium (GMP) of this InvIT is currently zero, which means there will be no immediate benefit on listing. This suggests that the issue price has been kept balanced, and speculative demand in the informal market is limited. Given the nature of InvITs, it is not unusual for GMP to be slow.
Citius Transnet InvIT focuses on road infrastructure assets and manages a diverse portfolio of 3,406.71 lane-kilometres spread across nine states. The portfolio consists of a mix of toll-based and annuity projects, offering a combination of traffic-linked and stable income streams. Since the secondary markets remain in a limited range and investors are focusing on earnings and global cues.
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