Dharmaj Crop Guard and Uniparts will be listed on the bourses in the next few sessions but their premia in the unofficial market have been retreating lately, considering the profit booking in the Indian markets.
Dharmaj Crop Guard’s premium in the grey market has slipped down to Rs 45 from Rs 50 in just 24 hours, whereas Uniparts India is currently commanding a premium of Rs 55-60. It was Rs 65-70 a day ago.
According to dealers tracking the grey market, the premia has taken a hit on the back of profit booking in the secondary markets, smaller issues, in-line valuations and little activity in the unofficial space.
Dinesh Gupta, co-founder, UnlistedZone, said the broader markets have turned volatile again over inflationary worries and profit booking in the last few sessions, which is dampening the listing prospects of these companies.
“The latest issues were launched at reasonable pricing with little room for further upside and there has not been much action reported in the unofficial market as the issues were valuations are not too attractive,” he told.
Dharmaj Crop’s Rs 251 crore IPO was open for subscription between November 28 and 30 as the company sold its shares in the range of Rs 216-237 apeice and its issue was overall subscribed 35.5 times.
Uniparts India’s primary stake sale kicked off on November 30 as the company aimed to raise Rs 835.6 crore by selling its shares in the range of Rs 548-577 apiece till December 2. Its issue has overall fetched 25.32 times bids.
Dharmaj Crop is likely to make its debut at Dalal Street on Thursday, December 8, whereas Uniparts is set for listing on Monday, December 12.
Manish Khanna, Co-Founder, Unlisted Assets, said the premium in the grey market for Dharmaj Crop Guard has improved from Rs 32 at the early stage — thanks to its strong subscription, and one can expect a decent listing pop.
“However, the premium for Uniparts India has eased down around Rs 60 from Rs 130-140 earlier considering its mild subscription status,” he added.
Other than these, the SME issue of Dronacharya Aerial Innovations has been thumping the grey market, thanks to its robust demand.
The microcap is commanding a premium of Rs 58 per share, against the issue price of Rs 52-54 apiece. The company’s issue will be open for subscription on December 13-15 to raise Rs 33.97 crore.
Incorporated in 2017, Droneacharya Aerial Innovations provides a high-end ecosystem of drone solutions for multi-sensor drone surveys, data processing of drone data using robust high configuration workstations, drone pilot training.
“On the valuation front, it looks good from a long-term perspective and investors should track their order book and execution on a quarter on the quarter basis to watch their performance,” Khanna said.
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