After a bit of quiet period in the recent past, primary market activity seems to be picking up with three public issues hitting Dalal Street and one listing taking place, as per IPO schedule.
More than Rs 600 crore worth of fund raising will take place by three companies through their initial public offerings.
Gujarat-based gas distribution company IRM Energy will be the first to hit the street with its Rs 545-crore IPO opening on October 18. This is the first issue in current month in the mainboard segment.
The offer comprises only a fresh issue component and there is no offer-for-sale (OFS) portion. Hence, the entire issue proceeds will go to the company, mainly for city gas distribution network in Tamil Nadu, and repaying debts, besides general corporate purposes.
The price band for the issue, which closes on October 20, was fixed at Rs 480-505 per share.
SME Segment
In the SME segment, the participants will see two issues opening next week. Online retail platform WomanCart, which offers several skincare brands, will launch its maiden public issue on October 16.
The Delhi-based company intends to raise Rs 9.56 crore at a price of Rs 86 per share, which will be utilised mainly for branding and marketing, App development, working capital requirements, and general corporate purposes.
The offer will close on October 18.
Rajgor Castor Derivatives will be the second initial public offering in the SME segment. The offer will open its Rs 48-crore issue on October 17 and will close on October 20, with a price band of Rs 47-50 per share.
The issue by the Gujarat-based castor oil-based products manufacturing company comprises a fresh issuance of shares worth Rs 44.48 crore, and an OFS of Rs 3.33 crore shares by promoters.
Chartering business company Arvind and Company Shipping Agencies will close its IPO on October 16, which so far have been subscribed 36.72 times.
On the listing front, third party logistics provider Committed Cargo Care will make its debut on the NSE Emerge on October 18. This was oversubscribed by more than 82 times during October 6-10.
Grey Market Premium
In the grey market, the shares of above IPOs are getting decent premium from investors, with IRM Energy available at a 18 percent premium over the upper price band and WomanCart trading with around 11 percent premium over the issue price, analysts on anonymity said.
According to them, Rajgor Castor Derivatives IPO shares traded at 20 percent premium over the upper price band, while Arvind and Company Shipping Agencies shares were available at 31 percent premium over offer price, and Committed Cargo Care traded at 13 percent premium over the IPO price of Rs 77 per share.
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The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
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