The shares of three companies — Tata Technologies, Gandhar Oil and Fedbank Financial — will debut on the exchanges tomorrow. If we go by the grey market trends, Tata Technologies seems to be emerging as the clear winner in the IPO frenzy season.According to the latest GMP trend, Tata Technologies is trading with a premium of Rs 406, which indicates a listing gain of over 80%. Analysts are also quite optimistic that the company will deliver solid debut gains to investors on debut.
“Given the immense investor interest and the company’s robust capabilities, Tata Technologies is poised for a successful listing on the Indian stock exchanges and it will be interesting to witness this listing,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
“Considering overwhelming investors demand along with investors friendly pricing indicating Tata Group legacy to reward shareholders, a strong listing gain over and above 75%+ can be assumed against the issue price of Rs 500 per share,” said Prashanth Tapse of Mehta Equities.
The Rs 3,042-cr IPO of Tata Technologies received bids worth over Rs 1.5 lakh crore. The overall subscription was nearly 70 times the shares on offer.
Meanwhile, Gandhar Oil is commanding a premium of Rs 72 in the unlisted market. Considering the upper price band of 169, the stock is expected to list at a healthy premium of 42%.
Gandhar Oil, leading manufacturer of white oils, received a better-than-expected subscription demand at 64x, mainly on the back of reasonable IPO valuation.
“We believe a healthy listing gain between 30-40% possible against the issue price of Rs 169 per share, giving a good room of listing gains due to valuation gap between listed peers and Gandhar Oil,” Tapse said.
Fedbank Financial, which saw the least subscription response among all the IPOs last week, is also looking weak in the grey market with a negative premium.
Analysts see a flat or negative listing a possibility for Fedbank Financial, and investors should be prepared for the potential of short-term losses.
“Despite the company’s strong track record of growth and profitability, along with its diversified customer portfolio, the lack of enthusiasm among investors could lead to a flat or even negative listing,” Nyati said.
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