IPO Grey Market Activity Indicates Pricing Trends Ahead of Upcoming Listings by Amir Chand, Powerica, and Sai Parenteral

Market Update: IPO Trends and Grey Market Premium

The recent public offerings have garnered limited enthusiasm from investors, citing market instability, geopolitical tensions, and foreign institutional investment outflows. The depreciating Rupee and increasing crude oil prices have also contributed to investor hesitation. Despite this, several upcoming IPOs are set to launch next week, starting on Tuesday, March 24.

Trends in Initial Public Offerings

According to Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, recent subscription figures indicate both market instability and fundamental problems in the way companies are entering the market. Gulati noted that when 60-70% of an offering consists of an offer for sale (OFS), there is essentially no growth capital being utilized; it's merely a way for early investors to exit, rather than a value-generating event for new investors.

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Grey Market Premium (GMP) Trends

• Amir Chand Jagdish Kumar (Exports) IPO GMP: ₹6, estimated listing price: ₹218 apiece (2.83% higher than the IPO price of ₹212)
• Powerica IPO GMP: ₹7.5, estimated listing price: ₹402.5 apiece (1.90% higher than the IPO price of ₹395)
• Sai Parenteral IPO GMP: ₹0, trading at issue price of ₹392 with no premium or discount in the grey market

Upcoming IPOs

• Amir Chand Jagdish Kumar (Exports): basmati rice exporter, price band: ₹201-212 per share, valuation: ₹2,200 crore, IPO size: ₹1,000 crore
• Powerica: power solutions provider, price band: ₹375-395 per share, valuation: ₹5,000 crore, IPO size: ₹1,000 crore
• Sai Parenteral: pharmaceutical formulations company, price band: ₹372-392 per share, IPO size: ₹1,000 crore, funds raised to aid growth and expansion

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