Vikram Solar, Shreeji Shipping, Patel Retail & 2 IPOs to open next week; check latest GMPs

It continues to rain IPOs at Dalal Street in the current monsoon season. The upcoming week, kicking off from August 18 will see as many as five mainboard primary offerings, cumulatively raising Rs 3,585 crore from investors. Of the five issues, four shall open on Tuesday, August 19 and close on Thursday, August 21. The last issue will open for bidding between August 20-22.

Market experts believe that the current IPO pipeline reflects continued momentum, but cautious optimism is advised due to potential overvaluation and liquidity constraints. The long-term outlook stays positive, supported by India's economic growth.

The Indian primary market has remained robust over the past 3-4 months, raising Rs 67,000 crore, despite secondary market volatility and global uncertainties, said Santosh Meena, Head of Research at Swastika Investmart. "Investor appetite, particularly from retail and domestic funds, is strong, driven by listing gains and diverse offerings, though FPIs are more selective," he said.

Among the five, Vikram Solar is the biggest issue, opening on Tuesday, August 19, raising a total of Rs 2,079.37 crore via IPO, including a fresh share sale of Rs 1,500 crore and offer-for-sale of up to Rs 1,74,50,882 equity shares by its promoters and shareholders. The company shall be offering its shares in the range of Rs 315-332 apiece with a lot size of 45 equity shares.

Gem Aromatics and Shreeji Shipping Global follow the next in terms of issue size. IPO dates are August 19-21, raising Rs 451.25 crore and Rs 410.71 crores, respectively. Gem Aromatics is selling its shares in the range of Rs 309-325 apiece with a lot size of 46 shares, while Shreeji Shipping shall be offering shares in the range of Rs 240-252 in the multiples of 58 equity shares.

Patel Retail is the smallest issue opening on August 19. The company is raising a total of Rs 242.76 crore via primary route, offering its shares in the range of Rs 237-255 apiece with a lot size of 58 equity shares. Ambarnath-based Patel Retail is a retail supermarket chain, incorporated in 2008, that operates primarily in tier-III cities and nearby suburban areas.

Incorporated in 2005, Kolkata-based Vikram Solar is a solar photo-voltaic modules manufacturer, while Jamnagar-based Shreeji Shipping is a shipping and logistics company focusing on dry-bulk cargo, incorporated in 1995. Gem Aromatics is a Mumbai-based manufacturer of specialty ingredients, including essential oils, aroma chemicals, and value-added derivatives since 1997.

Last but not least, Mangal Electrical Industries will be raising a total of Rs 400 crore via IPO between Wednesday, August 20 and Friday, August 22, offering its shares in the range of Rs 533-561 apiece with a lot size 26 shares. Jaipur-based Mangal Electrical is engaged in manufacturing the transformers that are used for the distribution and transmission of electricity in the power sector.

Vikram Solar has seen a correction in its grey market premium (GMP), falling to Rs 57 apiece from Rs 69 per share earlier. Shreeji Shipping's GMP has also seen a mild decline to Rs 29 from Rs 30 earlier. On the contrary, GMP for Patel Retail has remained firm at Rs 34 apiece. However, there is no GMP for Gem Aromatics or Mangal Electrical.

However, some analysts remain skeptical of the ongoing IPO activity as they believe that the current primary market action is driven by euphoria, but less on fundamental strength. They believe that retailer's see IPO as a scheme for a quick, giving an easy exit to promoters and existing investors at rich levels.

The IPO space has come across as a lively pocket with investors' interest, said Master Capital. "The retail space has been highly active, with levels of participation driven more by the promise of GMPs and short-term gains, rather than by fundamentals. This has been building up a situation among retail investors, in which market euphoria is trumping the fundamentals," it cautioned.

"The increased activity in the primary market has provided space for companies to raise capital and for promoters to exit partially or completely at premium prices. Macro-wise, the action in the primary market reflects the resilience of the Indian market even during outside turbulence," it added.