Shares of TBO Tek and Aadhar Housing Finance will make their debut at Dalal Street today, that is, Wednesday, May 15. Both the listing candidates are likely to deliver a decent listing pop to investors but the gains are likely to be less-than what initial grey market premia was signaling.
The selling pressure in the listed markets and mild listing pop of Indegene Ltd have dented the sentiments for Aadhar Housing Finance and TBO Tek, said the market experts. Both the counters have been losing some footing in the grey market, cementing their opinion ahead of listing.
Aadhar Housing Finance is commanding a grey market premium of Rs 48-50, suggesting a listing pop of 15-16 per cent to the investors over the issue price of Rs 315. Its premium in the unofficial market stood at Rs 75 on the last of the bidding. Similarly, TBO Tek's GMP has tumbled to Rs 350, or 38 per cent, above the issue price of Rs 920, from Rs 550-560 at the end of bidding.
The IPO garnered a healthy subscription of 26 times, the current GMP is indicating a potential listing gain of 15 per cent over the issue price. This decline in GMP reflects current market sentiment and the recent moderate listing of the Indegene IPO, said Shivani Nyati, Head of Wealth at Swastika Investmart. Despite the fall in GMP, Aadhar Housing's outlook remains positive, she said.
"Overall, Aadhar Housing Finance's strong fundamentals and dominant market position in the low-income segment suggest a decent listing. However, with the recent market volatility and the company's inherent challenges, investors should consider a long-term perspective and maintain a healthy risk appetite," Nyati added.
Both the IPO were open for bidding between May 8-10. Aadhar Housing Finance raised a total of Rs 3,000 crore and the issue was overall booked 25.49 times during the bidding process. TBO Tek's Rs 1,550.81 crore initial stake sale was subscribed a stellar 86.70 times during the bidding process.
The decline in the GMP should not dampen the overall positive outlook, considering the strong subscription of 80 times witnessed during the IPO window. TBO Tek's appeal stems from its robust technological foundation, said Shivani Nyati, Head of Wealth, Swastika Investmart.
"Thus, despite the potential risks and the slight moderation in GMP, TBO Tek's strong fundamentals, innovative technology platform, and financial turnaround position it well for a good listing with decent gains," he said.