Investors are eagerly waiting for two bumper listings on Monday, November 15 – Sigachi Industries IPO and Policybazaar India Operator PB Fintech IPO. Strong buyer response, healthy financials and high gray market premiums during the subscription period indicate an excellent listing for these two initial public offerings (IPOs).
Sigachi Industries IPO Opened for subscription from 1-3 November. The company has fixed a price band of Rs 161-163 per share. The IPO of Sigachi Industries received a surprising response from investors during the subscription period – the issue was booked 101.90 times. Investors bid 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. The share of HNI investors was subscribed 172.43 times.
Sigachi Industries IPO Gray Market Premium:
As on date available by IPO Watch, the IPO Gray Market premium of Sigachi Industries on Sunday, November 14 was Rs.220. Unlisted shares of Sigachi Industries were trading at Rs 383, up 135 per cent from the high end of the issue price.
Commenting on the listing gains of Sigachi Industries IPO, Abhay Doshi, Founder, UnlistedArena.com, “The only small size issue among mega IPOs has managed to garner an overall subscription of over 100x from investors. Satisfactory financial performance And fair pricing resulted in strong demand. Expecting fireworks like listings and more than 100% listing profit on listings is expected.”
PB Fintech, operator of Policybazaar, India’s leading online insurance sales platform, will also be listed on November 15. PB Fintech was planning to raise Rs 5,625 crore from its first public offering. The price band was fixed at Rs 940 to Rs 980 per share. According to data from the National Stock Exchange or NSE, investors bid for 57,23,84,100 shares against 3,45,12,186 shares on offer. The portion reserved for qualified institutional buyers was booked 24.89 times. The share of retail investors was seen subscribed at 3.31 times and that of non-institutional investors at 7.82 times.
PB Fintech, PolicyBazaar Operator, IPO Gray Market Premium:
According to people trading in the unlisted market and stocks, PolicyBazaar IPO was operating at a premium of Rs 125 in the gray market. According to market observers, the gray market premium of PolicyBazaar IPO jumped after a weak week in the past few days. In the gray market, Policybazaar’s IPO was trading at Rs 1,105, up nearly 12 per cent from the issue price’s high of Rs 980.
On listing gains, Doshi said, “Listing gains may not be significant due to higher prices, but a 10-15 per cent increase on listing cannot be ruled out.”
The high price of Policybazaar IPO may be an issue but the listing may surprise the market. On the pricing of the IPO, Amarjit Maurya – AVP – Mid Cap, Angel One Ltd said, “In terms of valuation, EVs/sales works out to 47.6x (at the upper end of the issue price band) after FY21, Which is high considering its historical financial performance (continuing losses on the bottom-line front). Considering the overall business model and high valuations of the company.”
Another proposal, the IPO of SJS Enterprises, will also be listed on Monday. The issue price was set at Rs 531-542 per share on FY 2011 EPS at a P/E multiple of 35. The IPO of SJS Enterprises was subscribed only 1.59 times. The institutional buyers’ share was booked over 2 times and the retail and institutional quotas were each subscribed around 1.4 times. The gray market premium for this IPO of SJS Enterprises was weak.
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