Investors are keenly waiting for two bumper listing on Monday, November 15 — Sigachi Industries IPO and Policybazaar operator PB Fintech IPO. The strong response from buyers during the subscription period, healthy financials and high grey market premium indicate a stellar listing for these two initial public offerings (IPOs).
Sigachi Industries IPO opened for subscription from November 1-3. The company fixed the price band at at Rs 161-163 per share. Sigachi Industries IPO saw a stunning response from investors during the subscription period — the issue was booked 101.90 times. Investors put in bids for 54.88 crore equity shares against the IPO size of 53.86 lakh equity shares. The quota for qualified institutional buyers was subscribed 86.5 times while the portion set aside for retail investors was booked 80.47 times. HNI investors? portion was subscribed 172.43 times.
Sigachi Industries IPO Grey Market Premium:
Sigachi Industries IPO grey market premium stood at Rs 220 on Sunday, November 14, according to the date available by the IPO watch. The unlisted shares of Sigachi Industries was trading at Rs 383, 135 per cent up over the higher end of the issue price.
Commenting on the listing gains of Sigachi Industries IPO, Abhay Doshi, founder, UnlistedArena.com, ?The only tiny sized issue amongst the mega IPOs has been successful in gaining huge interest from investors getting subscribed over 100x overall. Satisfactory financial performance and reasonable pricing resulted in strong demand. A firework like listing is expected and may emnate above 100% listing gains on listing itself.?
PB Fintech, the operator of India?s leading online insurance selling platform Policybazaar, will also be listed on November 15. PB Fintech was looking to raise Rs 5,625-crore from its maiden public offer. The price band was set at Rs 940 to Rs 980 per share. Investors put bid for 57,23,84,100 shares against 3,45,12,186 shares on offer, according to data from National Stock Exchange or NSE. The portion reserved for Qualified Institutional Buyers was booked 24.89 times. The retail investors? portion was booked 3.31 times and that of non-institutional investors saw 7.82 times subscription.
PB Fintech, Policybazaar Operator, IPO Grey Market Premium:
Policybazaar IPO was commanding a premium of Rs 125 in the grey market, according the people dealing unlisted market and shares. The grey market premium of Policybazaar IPO jumped in the last few days after a tepid week, according to market observers. Policybazaar IPO was trading at Rs 1,105 in the grey market, around 12 per cent up over the higher end of the issue price fixed at Rs 980.
On listing gains, Doshi mentioned, ?Due to expensive pricing, listing gains may not be remarkable but gains of 10-15 per cent on listing cannot be ruled out.?
Higher pricing of Policybazaar IPO can be an issue but the listing may surprise the market. On pricing of the IPO, Amarjeet Maurya ? AVP ? mid caps, Angel One Ltd said ?In terms of valuations, the post-issue FY2021 EV/Sales works out 47.6x to (at the upper end of the issue price band), which is high considering ’s historical financial performance (making continuous losses on bottom-line front). Considering the company?s overall business model and higher valuation.?
Another offer, SJS Enterprises IPO will also get listed on Monday. The issue price was set at Rs 531-542 per share at p/e multiple of 35 on FY21 eps. SJS Enterprises IPO was subscribed only 1.59 times. The institutional buyers portion was booked more than 2 times and retail and institutional quotas were subscribed about 1.4 times each. The grey market premium was tepid for this SJS Enterprises IPO.
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