The premium for the listing-bound Dharmaj Crop Guard and Uniparts India is moving higher in the unofficial market, hinting a strong listing pop for investors, if the optimism prevails for another few sessions.
The premium for Dharmaj Crop Guard is around Rs 55-60 in the grey market, which is roughly about 25% higher than its price band of Rs 216-237 apiece. The Rs 251 crore issue opened on Monday and will close on Wednesday.
Similarly, Uniparts India’s shares are traded at a premium of Rs 80 in the grey market at a premium of 15% compared to its price band of Rs 548-577 apiece.
Its Rs 835.61 crore initial public offering will kick off for subscription on Wednesday and remain open till Friday, December 2, making it the last IPO of November.
Analysts tracking the grey market suggested that both issues are reasonably priced and belong to growing sectors posting strong business growth, pushing the investor interest higher.
Abhay Doshi, co-founder, UnlistedArena, said both companies have left something on the table for investors with strong business growth profits. This is pumping up the premia in the unofficial market.
“Both the companies belong to the sectors which are on demand,” he added. “Even the secondary markets are at record highs, which is adding more flavour for them.”
Among the two, Dharmaj Crop Guard is likely to gain more traction from investors purely considering its minuscule IPO size in comparison to Unipart India,the analysts said.
Manish Khanna, Co-Founder of Unlisted Assets, said Dharmaj is a good buy for long-term investors in this IPO and an investor may subscribe to the issue for both listing and long-term benefits.
“We are bullish on Uniparts India due to elements such a consistent increase in revenues, a healthy increase in profits, a good runway for expansion, and fair pricing,” he added.
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