Kalyan Jewellers India is set to make a debut on the bourses on March 26 and experts largely expect it to be a muted listing with some discount given the bearish market sentiment, tepid IPO subscription figures and expensive valuations.
The studded jewellery maker closed its Rs 1,175-crore public issue with 2.61 times subscription on March 18. The offer comprised a fresh issue of Rs 800 crore which would be used for working capital requirements.
Currently, Kalyan Jewellers is trading at a discount price in the grey market compared to its issue price of Rs 87, the IPO Watch data showed.
Grey market is an unofficial platform where shares trade before the bidding in IPO begins till the listing of shares.
"The issue is now trading at marginal discount with major reasons being muted response from the investors, expensive valuations in comparison to its listed peers and dampened investors' sentiments. We expect the listing price of this issue to range between Rs 78-80," Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.
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Prashanth Tapse, AVP Research at Mehta Equities, too, feels the volatile market conditions and lower-than-expected subscription demand to its initial public offering (IPO) may affect listing sentiments. Hence, investors can expect muted listing as risk concerns weigh more over positive investment rationales.
"On valuations front, at upper price band of Rs 87, the company is asking for market cap of Rs 8,961 crore which seems to be on higher side and nothing has been left on table to allotted investors," Tapse added.