One grey maker dealer told ETMarkets.com that Dodla was commanding a grey market premium of Rs 75-80 today compared with Rs 160-165 earlier. In the case of KIMS too, GMP has fallen to Rs 70 level from Rs 150-160 odd levels but still looks better than the initial Rs 35-40 premium it commanded when the IPO was announced, the dealer said.
Dinesh Gupta, Founder of Unlisted Zone, a platform that facilitates trading in unlisted stocks, said: “Last heard, Dodla’s grey market premium was at Rs 85 while that of KIMS at Rs 67. Premiums of both stocks have declined.”
Yash Gupta, Equity Research Associate at Angel Broking, said volatility in the grey market has continued. However, he thinks that both the IPOs should sail through and see good listing gains.
In the case of KIMS, the IPO is being sold in Rs 815-825 range. At the upper end of the price limit, the issue is asking for a PE multiple of 31.2 times and EV/Ebitda of 17.8 times on an FY21 basis. Abhay Doshi, founder at Unlisted Arena, said the KIMS IPO looks fairly prices and believes it should attract interest from long-term investors. “It would be interesting to watch how the stock performs after its debut on the bourses,” he said.
In the case of Dodla Dairy, the IPO is being sold in Rs 421-428 price band. At the upper end of this price band, this issue is demanding a post-issue annualised FY21 PE of 16.4 times.
“The IPO valuation looks reasonable when compared with peers. Considering strong OCF yield and consumer-centric business, which usually commands higher multiple, we recommend ‘subscribe’ to the IPO from the long-term perspective,” said Vikas Jain of Reliance Securities.
Meanwhile, grey market participants were more optimistic over Shyam Metalics whose issue ended up receiving 121 times subscription on Wednesday. The unlisted stock was commanding a grey market premium of Rs 130. Sona BLW, whose Rs 5,500 crore IPO was subscribed 2.33 times, was command a margin premium of Rs 4.
