Leading diagnostic chain operator Krsnaa Diagnostics, pharma company Windlas Biotech, and vitrified tile maker Exxaro Tiles are set to make their debut on the bourses on August 16.
Krsnaa Diagnostics is expected to start the day at a price of more than Rs 1,250 per share on the BSE and National Stock Exchange, which is more than 30 percent premium over final issue price of Rs 954 per share, experts feel.
The Rs 1,213.33-crore initial public offering of the company had seen overwhelming response from investors, subscribing 64.40 times during August 4-6, as the portion set aside for qualified institutional investors was subscribed 49.83 times, non-institutional investors had bought 116.30 times their portion and a part set aside for retail investors was subscribed 42.04 times. Employees' portion was subscribed 98 percent.
"Considering strong demand from QIB & HNI for demand in diagnostic services, one can expect healthy listing around Rs 1,250 plus, which translates to more than 30 percent premium over issue price of Rs 954," Prashanth Tapse, VP Research at Mehta Equities told Moneycontrol.
"Healthy listing gains seem to be justified as the issue was reasonable priced when compared to its listed peers. Demand would remain high as it has a well scalable and agile business model with robust long term revenue visibility," he said.
Astha Jain, Senior Research Analyst at Hem Securities is also expecting Krsnaa Diagnostics to list at approximately 30 percent premium to issue price.
The grey market investors traded Krsnaa shares at Rs 1,259-1,274 per share, a premium of Rs 305-320 or 32-33.5 percent over final issue price of Rs 954, the IPO Watch and IPO Central data showed.
"The share is trading at a GMP of Rs 305 according to IPO Central data, which effectively makes the listing price to come up to Rs 1,260 to Rs 1,280 per share. This issue has backing of strong sentiments due to its country wide presence and network and the business model," said Gaurav Garg, Head of Research at CapitalVia Global Research.
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Windlas Biotech, the domestic pharmaceutical formulations contract development & manufacturing organization (CDMO), is likely to list around Rs 550 on the bourses on Monday, against final issue price of Rs 460 per share, experts feel.
"The grey market premium of Windlas Biotech is around Rs 85 which is showing strong sentiments and confidence of investors and therefore we expect the stock to list around Rs 555 to Rs 560. The IPO is aggressively priced at 64 times to P/E, however, the company has posted a CAGR of 18 percent to 19 percent in operating profit from FY19-FY21. In the last few years CDMOs have got increased acceptance in the industry with increasing globalization," said Gaurav Garg of CapitalVia.
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In the grey market, shares were available for trading at Rs 540-545 per share, which is a premium of Rs 80-85 or 17.4-18.5 percent over issue price of Rs 460, the IPO Watch and IPO Central data showed.
The Rs 401.54-crore public issue of Windlas Biotech was subscribed 22.47 times as the reserved portion of qualified institutional buyers and retail investors was subscribed more than 24 times, while a part set aside for non-institutional investors witnessed 15.7 times subscription.
Considering healthy response from all the category investors, Prashanth Tapse of Mehta Equities believe Windlas Biotech would list around Rs 540-550 levels, which translates to 18-20 percent premium.
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"Decent listing gain seems to be justified with increasing globalization and focus of large pharmaceutical players on cutting costs and optimizing operations. CDMOs have seen significant acceptance in the pharmaceutical industry internationally over the last few years wherein Windlas is well placed to tap the opportunity," he said.
Astha Jain of Hem Securities is expecting Windlas biotech to list at approximately 13-15 percent premium to issue price.
The listing premium for Exxaro Tiles could be around 10 percent on Monday, though public issue received overwhelming response from investors, experts feel.
The Rs 161.09-crore initial public offering was subscribed more than 22 times during August 4-6, as the portion set aside for retail investors witnessed 40 times subscription and that of qualified institutional buyers' portion was subscribed 17.6 times. Non-institutional investors bought more than 5 times their reserved portion.
Considering decent response under QIB and retail category, Prashanth Tapse of Mehta Equities believes the listing can be seen around Rs 132, which translates to 10 percent premium over the upper end of the IPO price Rs 120.
"Decent gain can be seen if market sentiments supports the expected valuations. With market share of less than 1 percent IPO valuations were bit stretched when compared to other listed peers," he said.
Exxaro Tiles is engaged in manufacturing & marketing of vitrified tiles. Domestically, the company has pan India presence in 24 states/ union territories based on sales made during FY21, and internationally it supplies products in over 12 countries including Poland, UAE, Italy, Bosnia etc.
"The tile industry in the country is a fragmented one with a few established players and thus not very attractive segment like others. The grey market premium seems justified as the valuations seem stretched a bit as of now with the return on equity aspect which is lower than its peers," said Gaurav Garg of CapitalVia.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.