Vikram Solar vs Shreeji vs Gems vs Patel Retail: Check subscription status & GMP of 4 IPOs

Four mainboard IPOs- Vikram Solar, Shreeji Shipping Global, Gems Aromatic and Patel Retail, opened for bidding today, on Tuesday, August 19. Retail chain Patel Retail led the bidding, while renewable energy player Vikram Solar and logistics solutions provider Shreeji Shipping managed to sail through. Gem Aromatics, a aroma chemicals player, lagged in the bidding. All four issues will close for bidding on Thursday, August 21.

Patel Retail's issue was subscribed more than four times on day one, thanks to the all-round bidding. The QIB portion was booked 8.98 times, while allocation for retailers and NIIs were subscribed 4.01 times and 2.91 times, respectively. As per data from BSE, the investors made bids for 3,21,85,186 equity shares, or 4.12 times, compared to the 78,15,612 equity shares offered for the bidding by 2.05 pm.

Patel Retail is selling its shares in the price band of Rs 237=255 apiece. Investors can apply for a minimum of 58 shares and its multiples thereafter. It is looking to raise Rs 242.76 crore via IPO, which included a fresh sale of 85.18 lakh shares worth Rs 217.21 crore and an offer-for-sale of up to 10.02 lakh shares worth Rs 25.55 crore.

"We assign 'subscribe' rating to this IPO as the company has diversified portfolio and steady footprint expansion using a distinct store acquisition strategy," said Marwadi Financial Services. "Also, it is available at reasonable valuation as compared to its peers," it added.

Vikram Solar, which is the largest issue among the four, was overall booked 88 per cent. Investors made bids for 3,97,68,840 equity shares against 4,53,61,650 equity shares offered. Individually, allocation for retail investors was booked 90 per cent, while HNI investors' quota was booked 1.97 times. The QIB portion was subscribed only one per cent.

Vikram Solar is offering its shares in the price band of Rs 315-332 apiece. Investors can apply for a minimum of 45 shares and its multiples thereafter. It is looking to raise Rs 2,079.37 crore via IPO, which included a fresh sale of Rs 1,500 crore and an offer-for-sale of up to 1,74,50,882 shares worth Rs 579.37 crore.

With revenues compounding at a high double-digit pace, Ebitda expected to benefit from operating leverage, and exports plus C&I driving margin resilience, the company’s earnings profile should structurally improve, said SMIFS. "We recommend subscribe to the issue supported by capacity additions, improving utilisation levels, backward integration and growing orderbook."

Similarly, Shreeji Shipping's issue was subscribed 1.08 times and Gems Aromatics' primary offering was booked 47 per cent as of the given time. For the Shreeji Shipping issue, retail and NIIs portions were booked 1.33 times and 1.88 times, respectively and the QIB portion was booked 6 per cent. Retail portion in Gems Aromatic IPO was booked 73 per cent, while NIIs allocation saw 46 per cent bids. The QIB portion did not see any bids.

Shreeji Shipping is eyeing to raise a total of Rs 410.71 crore via IPO, by selling its shares in the price band of Rs 240-252 apiece, with a lot size of 58 shares. The issue is entirely a fresh issue of 1,62,98,000 equity shares. Gem Aromatics is offering its shares in the range of Rs 309-325, with a lot size of 46 shares, to raise Rs 451.25 crore. It includes a fresh share sale of Rs 175 crore.

Based on the FY25 earnings, relative to the company's post-IPO paid up capital, the issue is priced at a P/E ratio of 29.1, said GEPL Capital. "We believe that it is a prominent player in dry bulk cargo, expanding its fleet, improving its operating margins, and is fairly valued. Therefore, we recommend a 'subscribe' rating for the issue," it said.

Gem Aromatics is well positioned to take benefit from this expected growth, said Master Capital. "It is expanding its manufacturing capacities for existing and new products and continuing to focus on sustainability and reducing operating costs and improving operational and business efficiency. Investors looking to invest can invest in the IPO for the long term," it added.

All the four issues command a decent premium in the grey market. Vikram Solar's IPO is currently exchanging hands at Rs 50-55 apiece, suggesting gains of 15-16 per cent to the investors, while Shreeji Shipping Globals's GMP is seen at Rs 30 apiece, suggesting 12 per cent gains.

Similarly, Gems Aromatic is commanding a GMP of Rs 25-28 apiece, signaling 7-8 per cent listing pop for the investors, thanks to a muted response to the issue so far. Patel Retail is leading the pack in GMP terms, as its premium has jumped to Rs 45, signaling around 18 per cent gains for the investors.