The IPO tsunami is making a comeback, quite literally. Not only is the monsoon finally picking up across the country, also the activity in the primary market is seeing a pick-up in pace. But where should investors look next?
The spotlight thus far was on SBI Funds Management. After a strong subscription, the country’s largest asset management company listed at a premium of 7%.
And there is plenty to watch moving forward.
Over the next two days, four public issues worth more than Rs 10,000 crore will open for subscription.
The line-up includes a large infrastructure investment trust (InvIT), a global machinery manufacturer, a precision engineering company and a technology player.
But here’s the bigger question – which IPO is generating the most excitement? And what is the grey market indicating before subscriptions even begin?
Let’s break it down.
A Rs 5,000 crore InvIT kicks off the IPO action
The first public issue to open this week is Cube Highways Trust InvIT, which will open for subscription on July 22.
The issue size stands at Rs 5,000 crore. It is entirely an Offer for Sale (OFS), with a price band fixed at Rs 151-152 per unit.
The basis of allotment is expected on July 27, while the units are likely to be listed on July 29.
The latest Grey Market Premium (GMP) is nil, indicating that the unofficial market is currently not expecting any listing premium. Whether investor demand changes once the issue opens will be closely watched.
Can a manufacturing IPO draw strong investor interest?
The next issue in the queue is Lohia Corp, which opens for bidding on July 23.
The company plans to raise Rs 1,101.28 crore through a complete offer for sale and has fixed the price band at Rs 404-425 per share.
Lohia Corp manufactures machinery used in producing polypropylene (PP) and high-density polyethylene (HDPE) woven fabrics and sacks that are widely used in packaging and industrial applications.
So, what is the grey market indicating?
The latest GMP stands at around Rs 56, indicating an estimated listing price of nearly Rs 481. That works out to a potential listing premium of about 13% over the upper end of the price band.
The IPO everyone seems to be watching
If there is one IPO grabbing the most attention ahead of subscription, it is Indo-MIM.
The company is looking to raise Rs 3,811.21 crore, including a fresh issue of Rs 499.10 crore and an offer for sale worth Rs 3,311.21 crore.
The IPO will remain open between July 23 -27, with a price band of Rs 461-485 per share.
What makes this issue stand out is not just its size but the grey market activity.
The latest GMP is around Rs 202, suggesting an estimated listing price of nearly Rs 687. That translates into a potential premium of more than 41%.
However, it is important to note that the GMP is unofficial and can change every day.
Is this IPO worth tracking?
The fourth IPO to open this week is Xtranet Technologies.
A relatively smaller one in comparison to the others, the company plans to raise Rs 166.80 crore through a fresh issue and has fixed the price band at Rs 120-127 per share.
Subscriptions will open on July 23 and close on July 27, with the shares expected to list on July 30.
Despite being the smallest issue in the pack, its grey market signals remain positive.
The current GMP is around Rs 26, indicating a possible listing price of nearly Rs 153, or a premium of around 20% over the issue price.
Should investors rely only on GMP?
Grey Market Premium often becomes the first number investors look at before an IPO opens. It provides an indication of market sentiment, but it is not an official indicator and should not be treated as a guarantee of listing gains.
Subscription levels, overall market conditions, institutional demand and investor sentiment on the listing day will ultimately decide how these stocks perform.
With over Rs 10,000 crore worth of IPOs opening within just two days, the primary market is set to be busy. For investors tracking new listings, the coming sessions are likely to remain packed with action.
Disclaimer: The details, price bands, and Grey Market Premium (GMP) figures mentioned in this article are for informational purposes only and do not constitute an offer, solicitation, or recommendation to subscribe to any IPO or financial instrument. Unofficial market indicators like GMP are speculative, highly volatile, and should not be relied upon as a guarantee of listing gains or future stock performance. Investors are strongly advised to evaluate official offer documents and consult a SEBI-registered financial advisor before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.
