IPO opening this week: This week the stock market is very busy because many IPOs are opening together. Five mainboard IPOs and two SME issues are happening in the same week. Out of the five mainboard IPOs, four started on Tuesday and one more opened today. In the SME space, Studio LSD closes today, and another one, ARC Insulation & Insulators, will open on Thursday, August 21.
Before official listing, the IPO shares are traded in what is called the grey market. Here, people buy and sell at a premium or sometimes at a discount. This grey market premium, also called GMP, keeps changing all the time.
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IPO opening this week
Patel Retail IPO
The IPO of Patel Retail saw a very strong response from investors on the first day itself. The issue got oversubscribed 6.39 times. The part meant for Qualified Institutional Buyers was subscribed the most at 9.88 times. Non-institutional investors subscribed 7.40 times, while retail investors subscribed 4.93 times.
The shares in grey market showed a premium of about 18 percent, which comes to around Rs 45-46 for every share at the higher end of the price band. With this premium, the expected listing price is near Rs 300-301.
Vikram Solar IPO
Vikram Solar also opened this week and received good response though not as high as Patel Retail. On the first day, the IPO was subscribed 1.52 times in total. Non-institutional investors showed maximum interest, subscribing 3.84 times. Qualified institutional buyers put in only 2 percent subscription, while retail investors subscribed 1.36 times. In the grey market, Vikram Solar shares traded at a premium of about 14 percent or Rs 46-48 per share. If this continues, the shares may list around Rs 380.
Gem Aromatics IPO
The IPO of Gem Aromatics just managed to cross subscription on its first day. It was oversubscribed 1.03 times. Retail investors took the lead with 1.08 times subscription, while QIBs subscribed 1.05 times. Non-institutional investors showed less interest with 88 percent subscription. The shares traded with a grey market premium of around 8 percent, which is Rs 26 per share at the top end. The expected listing price comes close to Rs 351.
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Shreeji Shipping Global IPO
Shreeji Shipping Global got a much stronger response. The IPO was subscribed 2.13 times on its first day. The non-institutional investors again were the most active with 3.53 times subscription. Retail buyers subscribed 2.12 times and QIBs subscribed 1.09 times. In the grey market, the stock was trading at an 11 percent premium, or about Rs 28-30 for each share. This means the listing price is expected near Rs 280 to 282, reported ET.
Mangal Electrical Industries IPO
Mangal Electrical Industries opened its IPO today, Wednesday, August 20, and it will stay open until Friday, August 20. The company fixed its price band at Rs 533 to Rs 561 per share. In the grey market, people were giving a small premium of about 4 percent, which comes to Rs 20-22 per share at the upper band. If this stays the same, the shares may list around Rs 583.
Studio LSD IPO
Studio LSD is a small and medium enterprise issue that ends today. On the second day, the IPO was already subscribed 2.26 times. Even though people applied well, the grey market was not showing any premium as of Saturday afternoon. This means the stock may see a flat listing without much change in price.
ARC Insulation & Insulators IPO
Another SME issue is opening tomorrow, Thursday, August 21. This is the IPO of ARC Insulation & Insulators and it will close on Monday, August 25. The company kept the issue price between Rs 119 and Rs 125. In the grey market, the stock showed a premium of 17 percent, which is about Rs 21-22 per share. With this, the possible listing price can be close to Rs 146.
