look news india
The next week is going to be very exciting and full of activity for the investors of the primary stock market (IPO Market). Dalal Street is set to list shares of two big and much-awaited IPOs – SBI Funds Management and Alpine Texworld. Market experts and retail investors are keeping an eye on whether these two companies will make a big or slow entry in the stock market. If you have also invested money in any of these two IPOs or are planning to buy on the day of listing, then the latest and explosive signals coming from Gray Market Premium (GMP) will open your eyes, because on one hand, SBI Funds is pointing towards huge profits, on the other hand, investors in Alpine Texworld are holding their breath.
New blast of SBI Funds Management IPO: GMP crosses ₹90, signs of bumper earnings
There is tremendous enthusiasm in the gray market regarding the IPO of SBI Funds Management, a subsidiary of the country’s largest government bank State Bank of India (SBI). According to the latest data from IPO Watch, the gray market premium (GMP) of the company is currently trading strongly at ₹97 level. The company had fixed the upper price band of its public issue at ₹574 per equity share. From this point of view, according to the current trend, the listing of SBI Funds Management shares in the market can be done with a huge premium beyond ₹ 670, which is ready to give bumper profits to the investors on the very first day of listing. According to National Stock Exchange (NSE) data, the IPO received a historic response from investors and was subscribed a total of 41.66 times, with the share of Qualified Institutional Buyers (QIBs) being subscribed a record 140.11 times.
₹11,693 crore mega OFS: SBI and Amundi India Holdings selling their stake
This mega public issue of SBI Funds Management is worth about ₹11,693 crore, which is entirely a 100% offer for sale (OFS) of 20.37 crore equity shares. This simply means that the entire amount raised through IPO will not go to the core business of the company, but will go to the selling shareholder State Bank of India (SBI) and foreign partner Amundi India Holding. After the successful completion of this bumper IPO, the promoter stake of the country’s largest commercial bank SBI in this mutual fund house will come down from 61.76% to 55.46%, while the stake of global investment firm Amundi will remain at the level of 32.56%.
Alpine Texworld IPO’s momentum slows down: GMP reaches just ₹1, retailers have high expectations
Unlike SBI Funds, the gray market stance regarding the IPO of textile sector company Alpine Texworld IPO remains very cold and sluggish. According to market sources, its GMP is currently crawling at the level of just ₹1. The company had set a price band of ₹100 to ₹105 per equity share for this IPO, based on which its estimated listing price is seen around ₹106 per share, which indicates a flat or marginally positive opening. However, during subscription, this IPO received a total of 1.40 times applications, in which the highest interest and demand was recorded from retail investors.
Inside plan of ₹126.25 crore fresh issue: Company will set up a new manufacturing unit in Gujarat
This IPO of Alpine Texworld is a completely fresh issue of 1.20 crore equity shares, that is, there is no offer for sale involved and the entire money raised will go directly to the company. The company management has clarified that the net financial proceeds from the IPO will be primarily utilized for setting up a new modern weaving unit at their proposed third manufacturing unit in Ahmedabad, Gujarat, which will significantly increase the gray fabric production capacity of the company. Additionally, a major portion of this fund will be allocated to pre-pay the company’s old outstanding loans and meet general corporate working expenses, which will strengthen the company’s balance sheet from a long-term perspective.