IPO listings this week: Ethos debuts at discount; will eMudhra and Aether Industries buck the trend?
Ethos Ltd, the luxury and premium watch retailer, made a weak debut on Dalal Street on Monday, while shares of two more companies that launched their initial public offerings (IPO) are slated to be listed later this week.
However, a big bang listing should not be expected as evident from the grey market premium (GMP) and the market sentiment.
Shares of Ethos Ltd got listed at Rs 825.00 apiece on the National Stock Exchange, a discount of 6.04% to the issue price of Rs 878. The stock opened at a discount of 5.47% at Rs 830 on the BSE, making it the last listing for the month of May.
Ethos Ltd IPO received a tepid response from investors as the issue managed to sail through on the last day. The company raised Rs 472.3 crore through its maiden public issue.
The IPO was subscribed 1.04 times as it received bids for over 41.38 lakh shares against the offer size of nearly 39.80 lakh shares between May 18 to May 20. The portion reserved for retail investors was subscribed 84%, while that of Non-Institutional Investors was subscribed 1.48 times. QIB quota received 1.06 times subscription. The price band for the issue was Rs 836-878 per share.
Ethos Ltd is a premium watch retail chain operator and has 13% share of the total retail sales in the premium and luxury segment. It has a watch portfolio of 50 premium brands including Omega, Jaeger LeCoultre, Panerai, IWC Schaffhausen, Rado, Longines, Baume & Mercier, Bvlgari, H. Moser & Cie, Oris SA, Corum, Tissot, Raymond Weil, Carl F. Bucherer, Louis Moinet and Balmain.
eMudhra Ltd is the largest licenced Certifying Authority in India and provides services like Digital Trust Services and Enterprise Solutions to individuals and organisations in various industries.
eMudhra Ltd IPO saw a decent response from investors as the issue was subscribed 2.72 times. The IPO received bids for over 3.09 crore shares as compared to 1.14 crore shares on offer during May 20-24.
The company and its shareholders raised around Rs 413 crore from primary markets. The price band for the IPO was Rs 243-256 apiece. The shares will get listed on BSE and NSE on June 1.
In the unlisted market, the shares of eMudhra witnessed barely any trading. The grey market premium (GMP) of eMudhra shares was difficult to gauge as hardly any trading was happening in the counter, as per reports. The listing of eMudhra shares is also expected to be weak.
Aether Industries is speciality chemicals manufacturer and focused on advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies
The company is the biggest manufacturer of 4MEP globally in terms of volume and the only manufacturer of this product in India. It is the largest manufacturer of HEEP in India and globally in terms of volume; the largest manufacturer of NODG globally in terms of volume and the only manufacturer of this product in India. It is also the biggest manufacturer of T2E globally in terms of production volume and the only manufacturer of this product in India.
Aether Industries IPO received a strong response from investors as it got subscribed 6.26 times between May 24 and May 26. The public issue received bids for more than 5.85 crore shares against 93.56 lakh shares on the offer.
The company and its shareholders raised a little over Rs 808 crore from the primary market. The price band for the issue was Rs 610 to 642 per share. Aether Industries’ shares will list on June 3 on BSE and NSE.
In the unofficial market, the grey market premium (GMP) declined to Rs 10 on May 30. The GMP of Aether Industries shares has fallen from Rs 20 on May 24 and Rs 40 on May 19, as per IPO Watch data.
Note that the grey market premium is unofficial data and the listing of an IPO does not solely depend upon it.
Disclaimer: This article is for information purposes only and should not be considered as stock recommendation or advice to buy or sell shares of any company. Investing in the stock market can be risky. It is therefore advisable to research well or consult an investment advisor before investing in shares, derivatives or any other such financial instruments traded on the exchanges.