While Dodla Dairy is trading at a premium of Rs 65-70, KIMS is trading at a premium of Rs 95-100 in the grey market. The premia can be translated as 15-20 per cent over the issue price, signalling a decent listing gain for both the issues.
The dealers from unofficial markets said that both companies are looking set to give decent listing gains to the investors. The market sentiments are upbeat after better than expected performance from Shyam Metalics and Sona Comstar. Both the counters were listed on Thursday.
Ace investor Ashish Kacholia, known for his quality mid- and small-cap picks, has placed an application for over two million shares worth about Rs 180 crore in the initial public offer (IPO) of KIMS Hospitals, market sources said.
Abhay Doshi, founder of UnlistedArena and grey market watcher, said that KIMS is a better placed hospital chain compared to other listed peers and investors should hold it for long term gains, whereas Dodla Dairy is a listing gain play.
“As the other dairy stocks have not showcased extraordinary results, the long term expectation from Dodla Dairy remains tepid,” he added. “KIMS is a long term play but a lot will depend on the market sentiments over the weekend.”
Dodla Dairy came up with a Rs 520-crore IPO. The issue was subscribed 45.62 times. The quota reserved for qualified institutional buyers (QIBs) category was subscribed 84.88 times, non-institutional investors 73.26 times, and retail individual investors(RIIs) 11.33 times.
The Rs 2,144-crore IPO of Krishna Institute of Medical Science received bids for 5,56,55,046 shares compared with 1,44,13,073 shares on offer. The quota reserved for qualified institutional buyers (QIBs) was subscribed 5.26 times, while the HNI quota received 1.89 times bids. The one reserved for retail investors was subscribed 2.89 times.
Dinesh Gupta, Co-founder, UnlistedZone echoed the similar views and said that both companies are poised to deliver decent listing gains. He also preferred KIMS over Dodla Dairy as a long term play.
“Strong fundamentals, sound profitability and robust balance sheet are big positives for the hospital chain, compared to the other healthcare chains listed,” he added.
Both issues were open for subscription between June 16 and June 18. Dodla Dairy had fixed the price band for the issue at Rs 421-428, while KIMS sold shares at Rs 815-825 apiece.
The ongoing issue of India Pesticides (IPL) is trading at a premium of Rs 32-35 in the grey market. The company is selling its shares at a fixed price band of Rs 290-296 per share, under a Rs 800-crore issue.
“The grey market premium is down as the recently listed chemical companies did not perform as expected but IPL is a value bet,” said Doshi. “However, a lot will depend upon sentiments in the secondary market ahead of its listing.” The company is expected to be listed on July 5.
