ipo: 3 IPOs to debut on bourses this week: How much listing pop can you expect?

NEW DELHI: Shares of three companies which launched their initial public offer (IPO) recently will list on the bourses for secondary market trading during the week. Given the market conditions and grey market premium (GMP), a big bang listing gains should not be expected.

The first listing will be Ethos on Monday, which is a luxury watch retailer. It will be followed by eMudhra a couple of days later, which is a certifying authority. Aether Industries, a speciality chemical player, will make a debut on Friday.

Ethos GMP

Ethos claims to have the largest portfolio of premium and luxury watches in India and retail to 50 premium and luxury watch brands like Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, CarlF. Bucherer, Tissot, Weil, Louis Moinet and Balmain.

However, Dalal Street may not bestow it a luxury treatment on Monday given its high valuations. Dealers in the unlisted or grey market said shares of Ethos were trading at a premium of Rs 20, which on the base of IPO price of Rs 878, reflects negligible listing gains.

“The company doesn’t have a listed peer, but the valuation demanded is too rich despite the prospects being good and the current volatile market is not conducive for primary issues with such rich valuations,” said Aayush Agrawal, Senior Analyst, .
“We expect a tepid listing because of expensive valuations but any positive surprise can’t be ruled out amid improved market sentiments.”

eMudhra GMP

eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. The company and its shareholders raised Rs 413 crore from primary markets.

The company sold its shares in the range of Rs 243-256 apiece.

Dealers in unlisted market said it was difficult to gauge the possible listing gains of the issue as there was hardly any trading happening in the counter. Though, given the market situation and past trend, a weak listing is expected.

Aether Industries GMP

Aether Industries is a manufacturer of speciality chemicals. The company is the sole manufacturer of some of the chemicals in India such as 4-(2-Methoxyethyl) Phenol (4MEP), 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), Thiophene-2-Ethanol (T2E), Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valerolactone and Bifenthrin Alcohol.

Analysts were quite upbeat on its future prospects but the issue struggled to get retail investor attention during the bidding process. Though, thanks to late surge in applications especially from institutional investors, the issue sailed through eventually.

Dinesh Gupta of Unlisted Zone said Aether Industries was trading at a GMP of Rs 29-31 in the unofficial markets. At the IPO price of Rs 642, this reflects a premium of about 5 per cent, which is not much.

A lot will depend on the market conditions till Friday to see if the issue is able hold the premium or increase it further.