MTAR Tech, Easy Trip, Laxmi Organic, Anupam Rasayan IPOs: Grey market premiums zoom; should you buy?

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Updated: Mar 10, 2021 11:55 AM

The shares of ongoing and upcoming IPOs were commanding a strong grey market premium this week, despite Indian share market volatility

MTAR Tech, Easy Trip, Laxmi Organic, Anupam Rasayan, IPOsShares of Easy Trip Planners -- an ongoing IPO with today being the last day for subscription -- zoomed 129 per cent over the IPO price of Rs 145 apiece in the grey market

The shares of ongoing and upcoming IPOs were commanding a strong grey market premium this week, despite Indian share market volatility. Shares of Easy Trip Planners, Laxmi Organic Industries and Anupam Rasayan, in the grey market on Wednesday, surged up to 85 per cent over the IPO price. Meanwhile, shares of MTAR Technologies were seen quoting a grey market premium of over 85 per cent over the issue price of Rs 575 apiece ahead of listing, according to data provided by UnlistedArena.com, which tracks grey market. MTAR Technologies IPO closed for subscription last week.

IPOs and grey market premiums this week

Easy Trip Planners (ongoing)

  • Subscription open: 8-10 March
  • IPO price: Rs 187
  • Grey Market Price: Rs 332
  • Grey Market Premium: Rs 145, up 77.54%

Laxmi Organic Industries (upcoming)

  • Subscription open: 15-17 March
  • IPO price: Rs 130
  • Grey Market Price: Rs 220
  • Grey Market Premium: Rs 90, up 69%

Anupam Rasayan (Upcoming)

  • Subscription open: 12-16 March
  • IPO price: Rs 555
  • Grey Market Price: Rs 818
  • Grey Market Premium: Rs 263, up 47.38%

MTAR Technologies (closed for subscription)

  • IPO price: Rs 575
  • Grey Market Price: Rs 1,065
  • Grey Market Premium: Rs 490, up 85.21%

Listing day strategy for MTAR Technologies IPO

MTAR Technologies Rs 596-crore initial public offering (IPO), which was subscribed a massive 201 times, will finalise the basis of the allotment of the IPO on Wednesday. According to an analyst, MTAR Technologies will give a listing gain in tune of 30-50 per cent. Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online that investors’ strategy should be booking listing gains of 50 per cent at least. Equity shares are expected to be listed on BSE and National Stock Exchange on March 16, 2021. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told Financial Express Online, that MTAR Technologies shares are expected to list around Rs 1,050 apiece. “We are expecting a very good listing for MTAR Tech on account of bullish sentiment and dream run in the primary market,” Doshi said.

Also read: MTAR Tech IPO: Check share allotment status via BSE, registrar’s website; grey market premium, listing date

Easy Trip Planners, Laxmi Organic, Anupam Rasayan — which one should you subscribe?

Seeing the grey market trends, Anupam Rasayan shares were quoting the highest premium. But, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told Financial Express, that out of these four issues, MTAR Technologies appears to be the most attractive one as it has no listed peers and the valuations also seem reasonable. Chepa added that investors who have missed the MTAR Tech issue can consider subscribing to Easy Trip Planners’ IPO. Delhi-based online travel company claims to have recovered 70 per cent booking volumes in the third quarter of the Covid-hit FY21 versus the same period last year. While its rivals such as MakeMyTrip and Yatra Online stood at 46 per cent and 44 per cent, respectively. “Therefore, Easy Trip Planners seems to hold the potential to give decent listing gains as well as serve as a long-term pick,” Chepa added.

Vishal Wagh from Bonanza Portfolio, favors Easy Trip Planners as it offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions. Wagh has recommended to ‘subscribe’ to Easy Trip Planners IPO for listing gains.

(The recommendations in this story are by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)

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