Shares of TBO Tek and Aadhar Housing Finance are set to make their Dalal Street debut on Wednesday and if one goes by the signals from the grey market premium (GMP), investors should trim their expectations of listing pops, after less-than-expected listing of Indegene Ltd on Monday.
The selling pressure in the listed markets and mild listing pop of Indegene Ltd will dent the sentiments for the upcoming issues, said the market participants. Seconding their opinion, both the companies have lost some ground in the grey market as premia for them have corrected in the last few sessions.
Aadhar Housing Finance is currently commanding a grey market premium of Rs 50, suggesting a listing pop of 16 per cent to the investors over the issue price of Rs 315. Its premium in the unofficial market stood at Rs 75 by the closure of the issue. 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 on the last bidding day.
Indegene's gains were moderated after a decent listing pop and the performance fell short of market expectations, likely due to broader market sell-offs, said Shivani Nyati, Head of Wealth, Swastika Investmart. Despite the strong subscription of 70 times, the overall market sentiment impacted Indigene's listing price, she said.
"Aadhar Housing and TBO Tek have already closed their offerings with strong subscriptions. Go Digit's upcoming IPO is also generating significant market interest. While Indegene's muted listing might cause some short-term hesitation for these upcoming issues, the long-term outlook for each company will be determined by its own fundamentals," she suggested.
Based on strong subscription numbers, TBO Tek is most likely to deliver the strongest returns among the three. While Aadhar Housing and Go Digit are also expected to generate decent returns for investors, It's important to remember that overall market conditions will also play a role in the success of these upcoming listings, 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.
Considering market mood and investors getting cautious on the ongoing elections saga investors would prefer to safeguard profits there would be profit booking attempts seen in other IPO's, said Prashanth Tapse, Senior VP & Research Analyst at Mehta equities.
"Aadhar Housing and Go Digit listing can see decent 12-15 per cent listing gains while TBO Tek can continue to see higher listing gains when compared to other debuting candidates," he added.
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