After a month's break, the primary market activity has once again increased significantly with seven IPOs in the line up for next week. Nykaa operator FSN E-Commerce Ventures is in strong demand among investors.
The shares of FSN E-Commerce Ventures traded at more than 50 percent premium in the grey market, much higher than Policybazaar, Sigachi Industries and SJS Enterprises.
Out of the six recent IPOs, only these four are active in the grey market so far, as per the grey market data available on IPO Watch and IPO Central.
Total six companies are launching public issues, of which Nykaa opened on October 28 and Fino Payments Bank on October 29, while Policybazaar, Sigachi Industries, and SJS Enterprises will open on November 1.
Banker-turned-businesswoman Falguni Nayar-promoted Nykaa traded at Rs 1,725 per share in the grey market, a massive premium of Rs 600 or 53.3 percent over upper price band of Rs 1,125. Analysts also gave thumps up to the issue, though it is slightly highly priced.
Nykaa's strong brand image with superior management team, healthy financials with strong business model, sticky customer base, leading market share in the beauty & personal care segment, and innovative marketing efforts made by the company to promote brand are among major reasons that support the valuations, experts feel.
The grey market is an unofficial platform where the trading in IPO shares starts at the time of price band announcement and continues till the listing of shares on the bourses.
The company intends to garner Rs 5,351.92 crore through its public issue which comprises majorly offer for sale portion. The offer consists of a fresh issue of Rs 630 crore and an offer for sale of Rs 4,721.92 crore by promoter and investors. The price band has been fixed at Rs 1,085-1,125 per equity share. The issue closes on November 1.
Policybazaar operator PB Fintech, an insurance aggregator and consumer credit company, is available at Rs 1,100-1,150 per share in the grey market, a premium of Rs 120-170 or 12-17 percent over upper price band of Rs 980. The premium fell sharply from Rs 250 on October 24.
Policybazaar issue will open on November 1 and will close on November 3, with a price band of Rs 940-980 per share. The company is planning to raise Rs 5,625 crore through IPO that comprises a fresh issue of Rs 3,750 crore, and an offer for sale of Rs 1,875 crore by investor SVF Python II (Cayman) and other selling shareholders.
Microcrystalline cellulose manufacturer Sigachi Industries shares are available at a premium of Rs 50-110 in the grey market. This resulted into a price of Rs 213-273, a 31-67 percent premium over upper price band of Rs 163 per share.
This is the smallest issue among IPOs lined up in these 15 days, raising Rs 125.43 crore at upper price band, by issuing 76.95 lakh equity shares through IPO.
Decorative aesthetics supplier SJS Enterprises, which is planning to raise Rs 800 crore through public issue, traded at Rs 567 in the grey market, a premium of Rs 25 or 4.6 percent over upper price band of Rs 542, the IPO Watch data showed.
One97 Communications-owned Paytm will open after Diwali, on November 8, with a price band of Rs 2,080-2,150 per share and KFC operator Sapphire Foods will launch its IPO on November 9.
Paytm is the largest ever public issue, raising Rs 16,600 crore that comprises fresh issue and offer for sale of Rs 8,300 crore each.Overall the IPO pipeline is expected to be very big in coming months or in the second half of FY22. Adani Wilmar, Mobikwik, Tarson Products, Skanray Technologies, LIC are among IPOs expected to be hit Dalal Street in coming months.