Three bumper listings!

On a day when the moods of the market remained bad, three new stocks got listed. And despite that, all the three new debuted at a premium over their offer prices. This clearly indicates that while the intrinsic faith in Indian equities remains strong, the secondary market is seeing profit booking, mainly by the FIIs as the year comes to a close and taking advantage of the falling rupee which might not be get reversed a bit if the Fed reduces rates tomorrow.

Sai Life Sciences got listed at Rs.650, an over 18% premium on the listing price of Rs.549/share.QIBs led the demand with their portion subscribing 30.93x, HNIs at 4.92x  and retail investors at 1.37x. 

Our conclusion in the IPO Analysis - ‘Avoid’ IPO of Sai Life, due to aggressive pricing for average fundamentals.

The second listing was of Vishal Mega Mart and it did even better, getting listed at a more than 33% premium  at Rs.104 v/s IPO price of Rs.78. Here too the issue was led by QIBs at 80.75, HNIs at 14.25x and Retail at 2.31x.

Our conclusion in the IPO Analysis - Vishal Mega Mart offers a good mix of Growth, Margins and Valuation. We recommend ‘applying’ in the IPO, as both short term and long term prospects appear bright.

The third listing was One Mobikwik Systems. It got listed at Rs.440 v/s IPO price of Rs.279, a premium of 58%. Here, Retail investors led the demand, subscribing 134.67x, followed by QIBs at 119.5x and HNIs at 108.95x.

Our conclusion in the IPO Analysis - Don’t fall into this IPO’s valuation trap. If you want to be optimistic, there are 4,000 listed stocks and 4 ongoing IPOs to choose from. Avoid One Mobikwik, it’s not worth the risk.