Juniper Green, MV Electro IPO shares to listing; should you expect any surprise, check GMP

Shares of Juniper Green Energy and MV Electrosystems are set to make their Dalal Street debut on Thursday, August 06. Both the companies are set to list on a positive note, if one goes by their respective grey market premia (GMPs). To recall, both issues were open for subscription between July 30 and August 03.

Juniper Green Energy IPO gmp
The grey market premium of Juniper Green Energy has seen a sharp jump following a strong listing of Manipal Health and rebound in the broad markets. Last heard, it was commanding a premium of Rs 22-25 per share, suggesting a listing gain of 10-11 per cent for the investors. Its GMP stood around Rs 1-3 apiece, when the bidding for the issue closed.

The IPO of Juniper Green Energy was sold in the price band of Rs 214-225 per share with a lot size of 66 shares. It raised a total of Rs 1,800 crore via IPO, which was entirely a fresh share sale of up to 8,00,09,150 crore equity shares. The issue was overall subscribed 7.97 times with nearly 2.20 lakh applications, fetching bids for over Rs 10,600 crore.

New Delhi-Juniper Green Energy is one of India's leading renewable energy IPPs, engaged in developing, building, operating, and maintaining utility-scale renewable energy projects. ICICI Securities, HSBC Securities & Capital Markets, JM Financial and Kotak Mahindra Company were the book running lead managers of Juniper Green Energy IPO and Kfin Technologies Ltd was the registrar.

Investors with a short-term horizon may consider booking listing gains following the stock's market debut. Investors with a 2-3 year investment horizon may continue to hold as execution of the existing project pipeline and improving operational cash flows could drive sustainable earnings growth over the medium term, asid Mahesh M Ojha, VP of Research at Kantilal Chhaganlal Securities.

"Fresh investors are advised to wait for the next 1–2 quarters to gain better visibility on project commissioning, earnings trajectory, leverage, and cash flow generation before considering fresh exposure, which could also provide a more favourable risk-reward opportunity," it added.

MV Electrosystems IPO gmp
Ahead of its listing, grey market premium (GMP) of MV Electrosystems has seen some correction even after a solid bidding even as the sentiments in the broader markets improve. Last heard, it was commanding a premium of Rs 105-110 per share, suggesting a listing pop of 25-26 per cent for the investors. Its GMP stood around Rs 120-130 apiece, during the bidding period.

The MV Electrosystems offered its shares in the price band of Rs 400-425 per share with a lot size of 34 shares. It company mopped a total of Rs 290 crore via IPO, which was entirely a fresh share sale of up to 68,23,528 crore equity shares. The issue was overall subscribed a whopping 188.85 times with nearly 37.77 lakh applications, fetching bids for over Rs 32,000 crore.

Faridabad-based MV Electrosystems is engaged in the design, development, assembly and manufacturing of electrical & power electronics equipment used in railway rolling stock. Sundae Capital Advisors served as the sole book running lead manager of MV Electrosystems IPO and Kfin Technologies was the registrar of the issue.

"Investors receiving allotment may consider booking partial profits on listing while holding the remaining position for medium- to long-term value creation. Fresh investors are advised to wait for price stabilization and improved earnings visibility before taking exposure," Ojha adds.