The grey market premia of Zomato and Tatva Chintan Pharma Chem (TCPC) — whose IPO is still one — also remain sturdy, signalling solid buying interest in the primary market.
Listing candidates GR Infra and Clean Science & Technology are trading at a premium of Rs 560 and 610, respectively, in the unofficial market. This suggests a 60-70 per cent premium over the issue prices for these companies. For Zomato also, the grey market premium has doubled to Rs 17-18 from Rs 8-10 at the start of the week following huge demand among retail and HNI investors.
Similarly, Tatva Chinta Pharm Chem is demanding a premium of Rs 700-710 in the unofficial market. The issue got fully subscribed in just an hour on Day 1. “The signals are sturdy enough for healthy listing gains. Both GR Infra and Clean Science issues were heavily oversubscribed and left something on the table for investors,” said Abhay Doshi, Founder, UnlistedArena.com.
He said the companies are fundamentally sound, which is adding to the optimism. “Stocks of the recently listed companies have witnessed a sharp rise, which has further boosted the sentiment,” he said.
Clean Science and Technology’s Rs 1,546 crore initial public offering (IPO) was sold from July 7 to 9 in the price band of Rs 880-900 apiece. The initial public offer was subscribed 93.41 times.
Kaushlendra Singh Sengar, Founder & CEO, Invest19, expects these stocks to deliver hefty listing gains. However, he was more bullish on Clean Science & Technology. “With global presence and focus on developing eco-friendly technologies using in-house catalytic processes, the company deserves full marks on ESG parameters,” he said. “The company has strong cash flows and continuously spends on fixed assets for capacity expansion to meet the aggregate demand.”
The Rs 963 crore IPO of GR Infraprojects was sold between July 7 and 9 in the range of Rs 828 -837 per share. The issue was subscribed 102.6 times.
Dinesh Gupta, co-founder, UnlistedZone, said IPOs are the flavour of the season and there is good demand in the grey market as sellers have vanished. “There is adequate liquidity in the market. Investors do not want to miss the bus. That has created the euphoria,. Solid response to mega IPOs like Zomato and Paytm will further boost the sentiments,” he said.