Ethos IPO | eMudhra IPO: 3 IPOs To Debut On The Exchanges This Week – How Much Listing Pop Can You Expect?

Shares of three companies that launched their initial public offering (IPO) recently will be listed on exchanges for secondary market trading during the week. Given the market conditions and the gray market premium (GMP), one should not expect a huge profit explosion in the price.

The first listing will be Ethos on Monday, which is a luxury watch retailer. It will be followed a couple of days later by eMudhra, which is a certifying authority. Aether Industries, a specialty chemical actor, will make its debut on Friday.

GMP ethos

Ethos claims to have the largest portfolio of premium and luxury watches in India and retails 50 premium and luxury watch brands such as Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Weil, Louis Moinet and Balmain.

However, Dalal Street may not give him the luxury treatment on Monday given his high valuations. Unlisted or gray market dealers said Ethos shares were trading at a premium of Rs 20, which based on the IPO price of Rs 878, reflects negligible listing gains.

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“The company does not have a listed pair, but the required valuation is too rich even though the outlook is good and the current volatile market is not conducive to primary issues with such rich valuations,” said Aayush Agrawal, senior analyst at . “We expect a lukewarm listing due to expensive valuations, but any positive surprises amid improving market sentiments cannot be ruled out.”

eMudhra BPF

eMudhra is in the business of providing trusted digital services and business solutions to individuals and organizations operating in various industries. The company and its shareholders raised Rs 413 crore from the primary markets.

The company sold its shares in the range of Rs 243-256 each.

Traders in the unlisted market said it was difficult to gauge the issue’s potential listing gains as there were hardly any over-the-counter transactions. However, given the market situation and the past trend, a weak price is expected.

Ether Industries GMP

Aether Industries is a manufacturer of specialty chemicals. The company is the sole manufacturer of some of the chemicals in India, such as 4-(2-Methoxyethyl) Phenol (4MEP), 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), Thiophene-2-Ethanol (T2E) , Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valerolactone and Alcohol Bifenthrin.

Analysts were fairly optimistic about its future prospects, but the issue struggled to attract the attention of retail investors during the bidding process. However, thanks to a late surge in applications, especially from institutional investors, the problem was finally fixed.

Unlisted Zone’s Dinesh Gupta said that Aether Industries was trading at a GMP of Rs 29-31 on the unofficial markets. At the IPO price of Rs 642, this reflects a premium of around 5 per cent, which is not much.

Much will depend on market conditions through Friday to see if the issue can maintain the premium or increase it further.

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