Auto ancillary company Emmforce Autotech is set to debut on the BSE SME on April 30 and the grey market is indicating that the listing performance is expected to be robust, in fact far better than other three listings scheduled on the same day.
Emmforce IPO shares traded at a premium of around 125-130 percent over the issue price of Rs 98 per share in the grey market, the market observers said.
The grey market is an unofficial market wherein IPO shares can be bought and sold till the listing. Generally, market participants look at grey market data to know about the possible listing price of any IPO, which may or may not be 100 percent accurate in terms of performance.
In fact, its grey market premium has been gradually increasing as it was quoted at around 50 percent premium in the start of previous week and then jumped to around 100-105 percent over the upper price band on the IPO closing day.
The Haryana-based automotive drivetrain parts maker closed its Rs 53.90-crore initial public offering on April 25, with a massive 338.87 times subscription. The offer was opened on April 23.
All investors provided robust response to the issue, with non-institutional investors (high net worth individuals) buying 637.72 times the allotted quota, retail investors 267.62 times the portion set aside for them, and qualified institutional investors bidding 160.58 times the reserved part.
The price band for the public issue was Rs 93-98 per share.
Emmforce manufactures niche automotive drivetrain parts like differential housings, differential lockers, differential covers, 4WD locking hubs, spindles, axles & shafts, gear shifters, yokes, differential spools, and differential tools primarily for 4-wheel drive and performance racing vehicles.
Notably, the trading in Shivam Chemicals and Varyaa Creations will also commence on the BSE SME on the same day, but neither are getting any premium in the grey market. The former's IPO was subscribed 6.3 times and the latter’s 3.45 times.
Further, in the mainboard segment, heating equipment manufacturer JNK India will also list its shares on the bourses on the same date, i.e., April 30, after its RS 649.47-crore IPO gained 28.13 times subscription during April 23-25. JNK shares traded at more than 25 percent premium over the issue price of Rs 415, in the grey market, the market observers said.
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