The primary market will be buzzing this week due to multiple IPO launches and a mega listing, though too much volatility in the secondary market amid global growth concerns and inflation worries after the Ukraine war seem to have impacted grey market premiums of each one.
Life Insurance Corporation of India (LIC) is set to make its much awaited market debut on Tuesday. This would be the ninth listing on the BSE and NSE in the current calendar year.
The grey market premium clearly indicated that the country's largest life insurance company is expected to see either flat or negative listing compared to issue price of Rs 949, but experts say given the retail investors, employees and policyholders received shares at a major discount, this is still expected to be a premium listing for them.
The company allotted shares to policyholders at a discount of Rs 60 per share to the final issue price, while the discount for retail and employees is Rs 45 per share.
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"With the heightened volatility and current ongoing correction in the market, investors may witness a flat to slight negative opening from the upper band of the issue price. But since retail investors and policy holders got discount in this IPO, these investors may see marginal gains over their investment on the listing day," said Mohit Nigam, Head - PMS at Hem Securities.
Investors should hold the stock for long term and buy it in dips (around Rs 800-850), he advised.
LIC has successfully raised Rs 21,000 crore through its maiden public issue by issuing more than 22.13 crore equity shares to investors last week.
Apart from LIC listing, three IPOs are scheduled to be opened this week, which are Paradeep Phosphates, Ethos, and eMudhra.
Non-urea fertilizers manufacturer Paradeep Phosphates will open its public issue on May 17 and the offer will close on May 19, with a price band of Rs 39-42 per share.
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The company is planning to raise Rs 1,502 crore through its public issue that comprises a fresh issue of more than Rs 1,000 crore and an offer for sale of nearly Rs 500 crore by promoter Zuari Maroc Phosphates and the Government of India.
The net proceeds from fresh issue will be utilised for acquisition of Goa facility, and repaying of debts, besides general corporate purposes.
Ethos, India's largest luxury and premium watch retailer, will have the second public issue opening for subscription during May 18-20, with a price band at Rs 836-878 per equity share. The anchor book will open for a day on May 17.
The offer will fetch the company Rs 472.29 crore, which consists of a fresh issue of Rs 375 crore and an offer for sale of Rs 97.29 crore by promoters and other selling shareholders.
The company will repay its debts, fulfil the working capital requirements, and finance the capital expenditure through fresh issue proceeds.
Leading licenced certifying authority eMudhra is going to open its maiden public issue on May 20 and the closing date for offer will be May 24. The price band for the offer is Rs 243-256 per share.
The anchor book will be launched for a day on May 19, a day before issue opening.
The company intends to mobilise Rs 412.79 crore through the initial public offering, which comprises a fresh issue of Rs 161 crore and an offer for sale of Rs 251.79 crore by promoters.
eMudhra will repay its borrowings and fund its working capital requirements through fresh issue proceeds.
Funds raised from the issue will also be utilised for purchase of equipment and funding of other related costs for data centers proposed to be set-up in India and overseas locations; funding of expenditure relating to product development; and investment in eMudhra INC for augmenting its business development, sales, marketing and other related costs for future growth.
Apart from these IPOs, Prudent Corporate Advisory Services will finalise its IPO share allotment by May 18, while the share allotment with respect to Delhivery, and Venus Pipes & Tubes IPOs will get finalised by May 19.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.