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There has been continuous selling and sluggishness in the Indian stock market for the last few sessions. The direct impact of this weakness and volatility in the broader market is clearly visible on the sentiments of the primary market i.e. IPO segment. However, even in this period of current recession, the full confidence of investors and businessmen rests firmly on some selected IPOs. If we look at the gray market data, the premiums of most of the IPOs have softened, but there are three such issues which are raising the eyebrows of the investors.
According to the latest update of market trackers (InvestorGain), even in this challenging environment Adroit Industries, Moneyview and Orient Cables IPOs are trading at huge premiums ranging from 29% to 43% over their upper price bands. However, financial experts believe that Gray Market Premium (GMP) is completely uncertain and subject to rapid changes, hence investment decisions should always be taken based on the company’s fundamentals and strong business model.
There has been tremendous enthusiasm among investors regarding the IPO of Adroit Industries. GMP of this stock is trading around ₹58 in the gray market, which shows a handsome premium of about 43.28 percent over its upper price band of ₹134. Based on this strong GMP, the estimated listing price of the share is estimated to be around ₹192.
The company’s IPO was open to investors from September 23 to 25, for which the price band was fixed at ₹126-134 per share and the total issue size was ₹150.71 crore. This issue received a historic response from investors and closed with a total subscription of 176.85 times. Adroit Industries primarily manufactures propeller shafts and torque transmission critical components for automobiles and other heavy industrial sectors. The company’s products are supplied extensively not only to commercial vehicles but also to defence, heavy equipment and various industrial applications.
The IPO of digital lending and financial services platform ‘Moneyview’ is also maintaining a strong hold in the gray market. The IPO currently has a recorded GMP of ₹12.5, which represents a premium of approximately 36.76 per cent over its upper price band of ₹34. Based on these gray market signals, the estimated listing price of this stock is expected to be around ₹46.5.
Moneyview’s IPO has closed for subscription to investors. The company had fixed the price band of ₹32-34 for this and the total issue size was ₹1,091.68 crore, in which the lot size for retail investors was kept at 441 shares. The issue was subscribed more than 73 times even before its closing date. Moneyview is a leading digital financial services platform, through its apps and platforms, customers get easy access to personal loans, credit cards, home loans, insurance and other diverse financial products.
The IPO of Orient Cables, a company manufacturing products related to cable and networking solutions, is also attracting investors. The GMP of this issue remains at a strong level of ₹80 in the gray market. This is an attractive premium of about 29 percent compared to the company’s upper price band of ₹272, due to which its estimated listing price is expected to be around ₹352.
Orient Cables’ IPO is open for investments between September 25 and 29, with a price band of ₹258-272 per share and a total issue size of ₹552 crore. A lot size of 55 shares has been fixed for retail investors and this issue has already been fully subscribed. The company primarily produces high-quality cables and related products for fast-growing sectors such as networking, telecom, broadband, data centres, renewable energy and smart buildings, which are in high demand in the market.