IPO listing: Three IPO listing this week: Here’s what grey market signal say about them

New Delhi: Dalal Street is all set for at least three listings this week, as the benchmark indices scale new highs. However, grey market valuations are hinting at a tepid debut amid the volatility in the broader market.

According to the premia in the unofficial market, the allottee investors of these issues might get disheartened because of flat or at-par listing. Analysts said the three companies have launched issues at very expensive valuations, leaving nothing on the table for investors. There are miniscule chances of a decent listing pop.

In the grey market, Nuvoco Vistas is demanding a marginal premium of Rs 5-6 per share; its price band is Rs 560-570 per share. Aptus Value Housing is commanding a premium of Rs 13-15 on its issue price of Rs 346-353. Chemplast Sanmar is available at a premium of Rs 26-28 over its price range of Rs 530-541. None of the issues is commanding a premium of more than 10 per cent in the unofficial market.

Abhay Doshi, Co-founder of UnlistedArena.com, said the issues are fully priced in, leaving a little room for upside for the investors. He said he expects marginal gains, as suggested by the grey market. “Nuvoco Vistas and Aptus Value Housing can be a decent bet in the longer run as their valuations are high for short-term gains,” said Doshi, an avid tracker of the grey market. “Nuvoco may be benefitted by an infra push, whereas Aptus has lower NPAs in the industry.”

Aptus Value Housing Finance garnered a high number of bids from investors, thanks to strong demand from institutions and HNI investors. The Rs 2,780-crore issue was subscribed 17.20 times during the three-day process. The Rs 3,850-crore issue of Chemplast Sanmar was subscribed a little more than two times as HNIs kept away. The Rs 5,000-crore IPO of Nuvoco Vistas was subscribed only 1.71 times as the retail portion was subscribed 73 per cent.

The recent hammering of mid and smallcap shares and the flood of IPOs have affected sentiments for new issues. Also, recent listings have dampened investor sentiments.

Dinesh Gupta, Co-founder, UnlistedZone, said the IPO buying interest of investors lost steam after lackluster show by some debutants.

Cement maker Nuvoco Vistas and home loan provider Aptus Value Housing Finance is expected to be listed on Monday, whereas plastic player Chemplast Sanmar is likely to begin its innings on Tuesday.

Kaushlendra Singh Sengar, Founder & CEO at INVEST19, said the momentum in the IPO market seems to be fading as the benchmark indices are facing a lot of hurdles to keep an upward trajectory. “The market doesn’t seem much enthusiastic towards the upcoming four IPOs. Grey market premium of these IPOs is falling sharply, led by unavailability of strong fundamentals,” he added.