NEW DELHI: Anupam Rasayan’s discount listing after a solid 44 times subscription to the IPO has sent primary market bulls vanishing into thin air.
The not-so-anupam listing, at 6 per cent discount on Wednesday, is a testament of fading risk appetite for aggressively priced IPOs in the secondary market.
Anupam’s tepid debut came at a time when its grey market premium for the stock had fallen 54 per cent to Rs 80 on Tuesday against Rs 173 early last week. To be sure, the grey market was still willing to pay a premium of Rs 80.
But the stock hit a low of Rs 501.15 on its debut against an issue price of Rs 555.
Easy Trip Planners’ 13.5 per cent listing gain also was substandard for an IPO that was subscribed a whopping 159 times. Going by past data, it was the worst IPO listing in recent times for an issue with over 100-times subscription.
The muted listings seem to have a rub off on listing prospects of Laxmi Organic and Craftsman Automation IPOs.
“We can see the rub off of Anupam Rasayan on Laxmi and Craftsman Automation listings. However, Laxmi is still comfortably trading around Rs 50 premium, which could be hammered if the secondary market does not hold ground,” said Abhay Doshi, Founder of Gujarat-based UnlistedArena.com.
Doshi said the premium for Laxmi was at Rs 98 earlier and that of Craftsman at Rs 40 .
Manthan Mehta, Head of Unlisted & Private Equity Rurash Financial Services said, Laxmi’s grey market premium was at Rs 60-65, while Craftsman’s at Rs 30-35.
“Craftsman Automation offered its shares at rich valuations. Although the company has a diversified clientele base and a competitive edge and could be a beneficiary of the revival in the automotive industry, we are not expecting a high listing gain from the IPO. If it is more than 10 per cent from the issue price, one should take advantage of the situation and book the same,” Mehta said.
Laxmi Organic’s Rs 600 crore IPO was sold from March 15 to March 17. It was a hit among investors, being subscribed 106.81 times during its offer period. The HNI quota was subscribed 217.62 times, followed by the quota for qualified institutional bidders (QIB), which was subscribed 175.43 times. The quota for retail investors was subscribed 20.10 times.
The Rs 824 Craftsman issue wasn’t a big draw. It was sold in the Rs 1,488-1,490 range and received just 3.82 times subscription.