NEW DELHI: The burgeoning primary market started its busy week on a robust note as the Rs 224 crore Mukka Proteins’ initial public offering (IPO) was booked 137 times at the end of its 3-day subscription period on Monday.
The retail investors’ portion was subscribed more than 58 times while the Non Institutional Investors (NII) portion was booked 250 times. The quota of Qualified Institutional Buyers (QIB) portion was booked 189 times.
Following this strong trend, the IPO of R K Swamy was subscribed 2.18 times on Monday, the first day of booking. The Rs 173-crore IPO received 1,79,73,350 bids for shares as against 82,32,946 shares. A prominent integrated marketing service group in India, R K Swami provides a comprehensive solution encompassing creative, media, data analytics, and market research services under one roof.
“At the upper price band, the company is valued at P/E ratio of 46.5 of its FY23 earnings with a market cap of Rs 1,453 crore post the issue of equity shares and return on net worth of 22.2%. We believe valuation of the company is fairly priced and recommend a “Subscribe-Long Term” rating to the IPO,” said Anand Rathi Research Team in a note. Going ahead, this week JG Chemicals will launch its Rs 251 crore IPO on Tuesday while Gopal Snacks’s `650 issue is set to open for subscription on Wednesday. There will also be four mainboard listing this week as well.
Market experts believe Mukka Proteins is likely to become another multi-bagger on its very first day of listing as it was commanding a grey market premium (GMP) of 125% on Monday. In the last one month, IPOs such as that of Vibhor Steel and BLS E-Services have given super listing gains of more than 150% each.
Exicom Tele Systems, which had a successful subscription last week, is also expected to see a very healthy listing gain on Tuesday when it lists on the bourses. The IPO was commanding a grey market premium of Rs 156 on Monday over its issue price of Rs 142.
So far in CY24, 25 IPOs (13 mainboard and 12 SME segment) have entered the public market. Of the total, 21 are trading in green when compared to the issue price. In CY23, 243 companies were listed on Indian bourses, the highest annual tally in at least six years. Arvinder Singh Nanda, Senior Vice President, Master Capital Services, said the market is achieving record highs, many mainboard and SME IPOs are keeping the investors busy and many are in the Pipeline.