The new stocks- One Mobikwik Systems, Vishal Mega Mart and Sai Life Sciences are set to make their Dalal Street debut on Wednesday, December 18. However, the latest round of volatility in the broader markets has dented the listing prospects for these three issues and investors of these debutant should trim their hopes for listing gains.
The latest round of volatility in the listed markets has impacted the grey market premia for the listing bound players. However, the correction is not severe but fall has dented the sentiments for the other IPOs as well, which may launch their IPOs later or may debut at the bourses this week.
All three IPOs of Mobikwik, Vishal Mega Mart and Sai Life Sciences were open for bidding between December 11 and December 13. These issues cumulatively raised a total of Rs 11,615 crore via IPO route. All three issues received decent responses from the investors during the bidding period.
Last heard, Mobikwik was commanding a grey market premium of Rs 160 suggesting a listing pop of 57 per cent for the investors. Similarly, the GMP dropped to Rs 19 from Rs 21, while Sai Life Sciences' GMP dropped to Rs 60 from Rs 70 earlier. The former one was hinting at a listing pop of 25 per cent, while the latter one is expected to give a 12 per cent profit on debut.
The IPO of One Mobikwik Systems was sold in the price band of Rs 265-279 per share with a lot size of 53 shares. The Gurugram-based fintech player raised a total of Rs 572 crore via IPO, which was entirely a fresh share sale of up to 2,05,01,792 equity shares. The issue was overall subscribed a whopping 119.38 times.
One MobiKwik System has garnered significant investor interest, said Abhishek Pandya, Research Analyst at StoxBox. "Given its strong market presence, improved financial performance, and industry tailwinds, we recommend that investors who have been allotted shares consider holding their positions from a medium to long-term perspective," he said.
The IPO of another Gurugram-based company, Vishal Mega Mart offered its shares in the price band of Rs 74-78 per share with a lot size of 190 shares. The company raised a total of Rs 8,000 crore via IPO, which was entirely an offer-for-sale (OFS) of up to 1,02,56,41,025 equity shares. The issue was overall subscribed a solid 27.28 times.
Shivani Nyati, Head of Wealth at Swastika Investmart said that Vishal Mega Mart's revenue and profitability are rising, and its financial performance is stable, with the valuations for the IPO being fair. "However, the issue does not generate any money for the company. The IPO was well received and it is likely to deliver a respectable listing gain," she said.
The IPO of Sai Life Sciences sold its shares in the price band of Rs 522-549 per share with a lot size of 27 shares. The Hyderabad-based company raised a total of Rs 3,042.62 crore via IPO, which included a fresh share sale of Rs 950 crore and offer-for-sale (OFS) of up to 3,81,16,934 equity shares. The issue was overall subscribed 10.26 times.
Prashanth Tapse, Senior VP Research at Mehta Equities expects about 10 per cent listing gains on the back of the shift of global dynamics due to China plus one and Biosecure act could bring significant opportunities for Indian CDMO players in the coming future. "Hence, we recommend only risk taking investors to 'hold' the shares of IPO with risk for long term only," he added.