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Patel Retail attracts strongest demand so far at 23.06x, while Gem Aromatics gets a relatively weak response at 3.90x. Vikram Solar and Shreeji Shipping subscribed by 5.8x & 8.6x.
Gem Aromatics IPO Vs Patel Retail IPO Vs Vikram Solar IPO Vs Shreeji Shipping IPO: All You Need To Know
GMP Of 4 IPOs Closing Today: Four mainboard initial public offerings (IPOs) — Vikram Solar, Shreeji Shipping Global, Gems Aromatics and Patel Retail — are going to be closed today, Thursday, August 21. On the final day of bidding so far, till 10:25 am, Patel Retail has attracted the strongest demand with 23.06x subscription, whereas Gem Aromatics witnessed a relatively weak response at 3.90x. Renewable energy company Vikram Solar and logistics solutions provider Shreeji Shipping have received 5.82x and 8.59x subscriptions, respectively, so far.
Patel Retail IPO: Strong Demand, Over 23.06x Subscribed
Patel Retail‘s issue emerged as the clear frontrunner till the final day of bidding so far, with overall subscription of 23.06 times. By 10:20 am on Thursday, investors put in bids for more than 18.03 crore shares against 78.19 lakh shares on offer. The issue received strong interest from institutional investors, as the QIB quota was booked 17.02 times. Retail participation also remained strong with 18.99 times subscription, while non-institutional investors subscribed 33.45 times.
The company is selling its shares in the price range of Rs 237 to Rs 255 with a minimum application size of 58 shares. It aims to raise Rs 242.76 crore through the IPO, including a fresh issue worth Rs 217.21 crore and an offer-for-sale of Rs 25.55 crore. Brokerage house Marwadi Financial Services recommended a ‘subscribe’ rating, highlighting Patel Retail’s diversified portfolio, its aggressive store acquisition strategy and valuations that appear reasonable compared with peers.
Vikram Solar IPO: Largest Issue, 5.82x Booked
Vikram Solar, which has launched the biggest IPO among the four, managed to garner bids for 25.58 crore shares against 4.39 crore shares on offer, translating into an overall subscription of 5.82 times. The retail quota was nearly covered at 4.08 times, non-institutional investors subscribed 17.56 times, while the QIB portion saw only 14 per cent bids on the final day of bidding, as of 10:20 am.
The solar power player has fixed the price band at Rs 315 to Rs 332 per share, with an application lot size of 45 shares. It is looking to raise Rs 2,079.37 crore, comprising a fresh issue of Rs 1,500 crore and an offer-for-sale of Rs 579.37 crore. Brokerage SMIFS has advised investors to subscribe, pointing to capacity additions, improving utilisation levels, backward integration and a growing order book as positives that should support long-term earnings.
Shreeji Shipping IPO Subscribed 8.59x On Day 3 So Far
Shreeji Shipping Global managed to get fully subscribed on Day 1, with its IPO subscribed 1.08 times in total. However, on Day 3 so far, the issue received 8.59x subscription. The retail quota received 8.54 times, non-institutional investors subscribed 16.95 times, while the QIB portion was relatively muted at 2.43 times.
The company is offering shares in the range of Rs 240 to Rs 252 with a minimum lot size of 58 shares. It aims to raise Rs 410.71 crore through a fully fresh issue of 1.62 crore equity shares. According to GEPL Capital, the issue is fairly valued considering the company’s plans to expand its fleet and improve operating margins, and the brokerage has given a ‘subscribe’ recommendation.
Gem Aromatics IPO: Weak Response, 3.90x Subscribed
Among the four, Gem Aromatics lagged behind with only 3.90x subscription on the Day 3 so far. Retail investors has been subscribed 4.04 times of their quota, non-institutional investors bid for 6.78x, while the QIB category received 1.51x subscription.
The aroma chemicals maker is offering shares in the price range of Rs 309 to Rs 325 with a minimum lot size of 46 shares. It aims to raise Rs 451.25 crore, including a fresh issue of Rs 175 crore. Master Capital said the company is expanding manufacturing capacities for both existing and new products while focusing on sustainability and cost efficiency. The brokerage recommended the IPO for long-term investors.
Grey Market Premium Update
All four IPOs are commanding premiums in the grey market, suggesting likely listing gains for investors:
Patel Retail IPO: Rs 49 GMP, which indicates 19% listing gain over the issue price.
Vikram Solar IPO: Rs 42 GMP, which indicates 13% listing gains.
Shreeji Shipping IPO: Rs 35 GMP, which signals about 14% listing gains.
Gem Aromatics IPO: Rs 26 GMP, which shows a potential listing gain of 8%.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Key Dates
All four IPOs opened for subscription on Tuesday, August 19, and the bidding will close on Thursday, August 21. The issues are expected to list next week on August 26 on both BSE and NSE.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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