According to the dealers tracking this space, there is no buzz for Uma Exports and Veranda Learning Solution shares in the grey market space, with counters neither commanding premia nor discount. Hariom Pipe, whose IPO closed for subscription on Wednesday, will begin trading on April 13 and is witnessing is a similar trend.
Abhay Doshi, co-founder, UnlistedArena said negligence from the grey market is due to the small issue size of the issues, the negative bottom line of the company, muted fundamentals and lack of institutional interest.
“The only buzz was for Hariom Pipe, which was heard at the premium of Rs 8-10 apiece but the information flow has been negative,” he added. “No deals are observed.”
The Rs 60-crore IPO of Uma Exports was open for subscription between March 28-30, with an overall subscription of 7.67 times. The price range of the issue was at Rs 65-68 a piece.
Meanwhile, the Rs 200 crore IPO of Veranda Learning Solutions was subscribed 3.53 times. The issue was open for subscription between March 29-31 in the price range of Rs 130-137 per share.
According to Saurabh Joshi, research analyst at Marwadi Financial Services, Veranda Learning Solutions could list at a mild premium to its issue price.
“There are no listed companies in India that engage in a business similar to that of the company,” said Joshi, who had assigned an ‘avoid’ rating to the issue, due to losses, negative operating cash flows and expensive valuations on an absolute basis.
