The primary market is heading into a busy week with five companies preparing to enter the IPO market. Investors will be watching the issue dates, price bands and grey market indications as subscription activity picks up from September 16.
The five IPOs on the radar are NSE, SS Retail, Jindal Supreme, Hero Motors and Sonaselection. All five issues have their subscription windows scheduled during the week, although their opening and closing dates are different.
NSE IPO
The NSE IPO is scheduled to open for public subscription on September 17 and will remain open until September 21. The anchor portion is expected to open a day earlier on September 16.
The price band has been fixed at Rs 1,700 to Rs 1,785 per share. The offer is entirely an offer for sale, involving 12.64 crore equity shares. At the upper end of the price band, the issue could raise around Rs 22,569 crore.
Since the issue is an offer for sale, the money raised will go to the shareholders selling their shares rather than directly to the company.
The latest grey market premium for the NSE IPO is around Rs 210. Based on the upper price band of Rs 1,785, this points to an implied price of about Rs 1,995 and a potential premium of 11.76 percent.
SS Retail IPO
The SS Retail IPO is expected to open on September 16 and close on September 18. Its anchor book is scheduled to open on September 15.
The company has fixed the price band at Rs 403 to Rs 424 per share. The issue includes a fresh issue of shares worth up to Rs 360 crore along with an offer for sale of shares worth up to Rs 140 crore by existing shareholders and promoters.
The latest grey market premium stands at around Rs 120. At the upper price of Rs 424, this indicates an implied market price of roughly Rs 544 and a potential premium of 28.30 percent.
Jindal Supreme IPO
Jindal Supreme India is preparing to open its Rs 125 crore IPO on September 16. The issue will close on September 18.
The company has set a price band of Rs 88 to Rs 93 per share. Its business focuses on plastic piping solutions and related products.
The issue consists of a fresh issue of 1.07 crore equity shares along with an offer for sale of 26.86 lakh shares by promoter group entity VVJ Enterprise Private Limited.
The grey market premium is currently around Rs 27. Against the upper price of Rs 93, that suggests an implied value of nearly Rs 120 and a potential premium of 29.03 percent.
Hero Motors IPO
Auto components manufacturer Hero Motors is also entering the IPO market this week.
The company has fixed the price band at Rs 79 to Rs 84 per share. Its Rs 1,000 crore issue is scheduled to open on September 16 and close on September 18.
The offering includes a fresh issue of shares worth as much as Rs 600 crore and an offer for sale of up to Rs 400 crore by promoters.
Hero Motors is currently commanding a grey market premium of around Rs 24. At the upper price band of Rs 84, the implied price comes to approximately Rs 108, indicating a potential premium of 28.57 percent.
Sonaselection IPO
Sonaselection has fixed its IPO price band at Rs 94 to Rs 99 per share. The issue is scheduled to open on September 17 and close on September 21, while the anchor book is expected to open on September 16.
The Bhilwara based company is offering 1.43 crore fresh equity shares. At the upper price of Rs 99, the issue size works out to around Rs 141.57 crore.
There is no offer for sale component in the Sonaselection IPO.
The latest grey market premium is currently at Rs 0, which means the shares are trading around their issue price in the unofficial market.
IPO GMP Snapshot
Here is a quick look at the current grey market indications:
Listing Dates
The expected listing date for NSE and Sonaselection is September 24. SS Retail, Jindal Supreme and Hero Motors are expected to make their stock market debut on September 23.
Investors should keep in mind that grey market premium figures are unofficial and can change quickly. GMP should therefore be treated only as an indication of market sentiment and not as a guarantee of the actual listing price.
With several IPOs opening almost simultaneously, investors may want to compare the issue size, valuation, financial performance, subscription trends and GMP before deciding whether an issue fits their investment strategy.
Disclaimer: IPO Chowk provides information for educational and informational purposes. Grey market premium figures are unofficial and should not be considered a certainty about listing gains. Investors should review the official offer documents and consider their own financial situation before making an investment decision.