Archean Chemicals, Five Star Business Finance, Kaynes Technologies,
Green Energy and Keystone Realtors are likely to make their debut soon.
If signals from the grey market are anything to go by, Archean and Kaynes Technologies are top contenders for a strong listing pop, thanks to their solid subscription status.
Archean Chemicals, whose issue was subscribed 32.23 times, is commanding a premium of Rs 110 in the grey market, whereas Kaynes Technology’s premium is around Rs 200 in the unofficial market after 34.16 times subscription.
Analysts tracking the grey market said there is definitely the sentimental impact, particularly after the listing of Medanta, which continued to be in demand after the listing following the fund action.
Abhay Doshi, co-founder, UnlistedArena, said both issues have moved higher in the grey market as their business models have something unique. “However, one should not paint the entire picture with a single colour or brush.”
In November, nine companies across various sectors mobilised funds about Rs 10,350 crore ($1.25 billion) from the Indian primary markets, giving some signs of recovery.
Kranthi Bathini, Equity Strategist at Wealth Mills Securities, said there is some revival in the primary market and in the risk appetite among investors as the secondary market is stable near the record peaks.
Investors are looking to mint a quick buck from the primary market issues, he added. “The issues are from diversified sectors but investors need to see how these newly listed companies perform over the next 3-4 quarters.”
However, analysts said there are no mega issues lineup for the primary market in the near future as majority of the latest and upcoming issues are from midcap and smallcap segments only.
On the other hand, some experts suggest that investors should not get carried away with the listing pop and burn their hands as they did earlier. They warn that listing is not an issue but maintaining the momentum is a big challenge.
AK Prabhakar, Head of Research at
Capital, said euphoria in new debutants, after the initial listing buzz, settles down after one or two results. “New companies have not performed well in the long run on the back of expensive valuations.”
Investors should book the gains at listing and re-enter the fundamentally sound companies after studying their results for a year or two, he suggested. “One should focus on prudent investment for wealth creation and avoid speculations.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
