Policybazaar operator PB Fintech, SJS Enterprises and Sigachi Industries make their stock market debut on November 15.
Ahead of a listing, investors look at the grey market performance to get an idea about the possible listing price, though it is an unofficial platform.
If the grey market is anything to go by, microcrystalline cellulose (MCC) manufacturer Sigachi Industries is way ahead of the two other companies.
Sigachi share is trading at three digit premium in the grey market among , while SJS Enteprises and Policybazaar are at a single digit premium.
The three IPOs opened for subscription during November 1-3, 2021.
Sigachi Industries
The grey market trading price for microcrystalline cellulose manufacturer is around Rs 383-393 crore, a premium of Rs 220-230, or 135-141 percent, over the issue price of Rs 163 a share.
Sigachi garnered Rs 125.43 crore through its public issue, the smallest among the IPOs launched in financial year FY22.
The offer was subscribed 101.91 times . The portion reserved for non-institutional investors was subscribed 172.43 times, while qualified institutional buyers had bid 86.51 times their lot size. Retail buyers subscribed the issues 80.49 times.
The funds raised through the IPO will be used for the expansion of the production capacity for MCC at Dahej and Jhagadia in Gujarat and to manufacture croscarmellose sodium, a modified cellulose used as excipient, at Kurnool in Andhra Pradesh.
MCC is widely used as an excipient for finished dosages in the pharmaceutical industry. The inert non-reactive, free-flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries.
Policybazaar
Policybazaar was trading at Rs 1,040-1,050 in the grey market, a 6-7 percent, or Rs 60-70, premium over the final issue price of Rs 980, as per the IPO Watch and IPO Central data.
PB Fintech garnered Rs 5,625 crore through its initial public offering that was subscribed 16.58 times.
Qualified institutional buyers (QIBs) showed a keen interest in the company, as their reserved portion was subscribed 24.89 times. The part set aside for non-institutional investors saw 7.82 times subscription and that of retail investors 3.31 times.
The offer consisted of a fresh issue of shares worth Rs 3,750 crore and an offer for sale of Rs 1,960 crore by shareholders, including SVF Python II (Cayman) that sold shares worth Rs 1,875 crore.
PB Fintech operates Policybazaar, the India's largest digital insurance marketplace, and Paisabazaar that provides lending products (personal loans and credit cards).
SJS Enterprises
Decorative aesthetics products maker SJS Enterprises’ share was available at Rs 582 in the grey market, a premium of Rs 40, or 7.4 percent, over the final issue price of Rs 542.
The Rs 800-crore offer for sale got a tepid response from investors and was subscribed 1.59 times.
The portions set aside for qualified institutional buyers, non-institutional investors and retail investors were subscribed 1.42 times, 2.32 times, and 1.38 times respectively.
Promoters Evergraph Holdings Pte Ltd and KA Joseph sold shares worth Rs 710 crore and Rs 90 crore through the offer for sale. The company will not get any money from the initial share sale.
The company is a "design-to-delivery" aesthetics solutions provider that designs, develops and manufactures diverse products for customers primarily in the automotive and consumer appliance industries.
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