Investor appetite for companies heading to the stock market has multiplied over the past few months, and the reason is straightforward: several IPOs have handed handsome returns to those who managed to secure an allotment. The most recent example is the Advit Jewels IPO, which made its debut with a strong 35% listing gain over its issue price. It did witness some profit-booking soon after, yet it continues to trade comfortably above its issue price.
Small and medium enterprise names have also delivered healthy premiums during this stretch. As a result, the average listing gain for SME IPOs stands at roughly 5.6% for the year so far, well ahead of the 1.7% average posted by mainboard issues. Now another action-packed week is lined up, packed with big listings, allotments and fresh issue subscriptions opening. Here is a closer look at each of them.
Kusumgar IPO Opens on July 8
The Kusumgar IPO will open for subscription on Tuesday, July 8, and close on Thursday, July 10. It is a book-built offer with a total size of Rs. 650 crore, and notably, it is made up entirely of an Offer for Sale (OFS) of 1.55 crore equity shares.
The company has set a price band of Rs. 398 to Rs. 419 per share, with a lot size of 35 shares. At the upper end of the band, retail investors will need to commit a minimum of Rs. 14,665. The basis of allotment is expected to be finalised on July 13, while the shares are likely to list on the NSE and BSE on July 15. Going by the latest market trends, the Grey Market Premium (GMP) stood at Rs. 165 as of July 5. If that premium holds until listing day, investors could be looking at a potential listing gain of close to 39.4%.
Laser Power & Infra IPO to Open on July 9
Another important issue next week is the Laser Power & Infra IPO, with bidding opening on July 9 and closing on July 13. The company is aiming to raise Rs. 742 crore through the offer. The allotment is expected to be wrapped up on July 14, and the shares are tentatively scheduled to make their NSE and BSE debut on July 16. For now, the company has not yet revealed its price band.
Aastha Spintex Lists on July 6
The next name worth tracking is the Aastha Spintex IPO, which is set to debut on the stock market on July 6. The Rs. 170 crore issue, made up entirely of a fresh issue, drew an overall subscription of 5.05 times during the bidding window. It was priced at Rs. 136 per share. As of July 5, the latest GMP is a modest Rs. 4, which points to an estimated listing price of around Rs. 140 per share, hinting at a slim listing premium of roughly 2.9%.
Knack Packaging Allotment and Listing
The Knack Packaging IPO, which closed for subscription on July 3, saw overwhelming demand pour in across every category. The Rs. 439.5 crore issue, comprising a fresh issue of Rs. 380 crore and an Offer for Sale of Rs. 59.5 crore, was subscribed 87.17 times overall. The retail category was booked 21.09 times, while the QIB and NII portions were subscribed 160.22 times and 146.64 times respectively.
The basis of allotment is expected to be finalised on July 6, with the shares likely to list on the NSE and BSE on July 8. The IPO was priced in the range of Rs. 161 to Rs. 170 per share. The latest Grey Market Premium is Rs. 20, which suggests an estimated listing price of Rs. 190 per share and a potential listing gain of around 11.8%.
