Global Health, Bikaji Foods to list on bourses today: GMPs suggest decent listing gains

Two stocks namely Bikaji Foods International and Global Health will make their market debuts on Wednesday. If we to go by grey market trends, the two stocks may clock single digit returns on listings.

Last heard, Bikaji Foods traded at grey market premiums (GMPs) of Rs 23 (price band Rs 285-300). Pravesh Gour of Swastika Investmart said Bikaji's IPO had received a good response from both the institutional and retail investors. But the company's margins are on the declining side and a PE valuation of 95.2 looks expensive. "Therefore, we advise investors to lock in listing gains, and only aggressive investors should consider making a long-term commitment to the company," he said.

Global Health's GMP, meanwhile, rose to 28 (price band Rs 319-Rs 336), respectively.

Ravi Singhal, CEO at GCL Securities said Global health can be listed as Rs 380 in the bull case scenario and Rs 340 in the bear case. He advised short term investors to exit the stock on listing due to the high level of competition in the industry, as he prefers Apollo Hospitals in the listed space.

Cash rich investors can hold for long term periods, he said.

The two IPOs ran from November 3 to November 7. Bikaji's IPO was subscribed 26.67 times and Global Health 9.58 times.  

Global Health is a hospital chain and operates under the brand ’Medanta’. The hospital chain is widely known for its multi-speciality care in North and Eastern regions of India. At the upper price band of Rs 336, the IPO was offered at a PE of 45.9 times FY22 on post issue basis.

Bikaji as a brand was launched by Shiv Ratan Agarwal in 1993. The brand has a market leadership in the ethnic snacks market in Rajasthan, Assam, and Bihar. Bikaji operated in 23 states and four union territories as of June 30. It also exports its products to 21 international countries, which account for 3.2 per cent of its total sales.

Bikaji's was purely an offer for sale (OFS) of 29,373,984 shares. Selling shareholders included Shiv Ratan Agarwal (up to 2,500,000 shares), Deepak Agarwal (up to 2,500,000 shares) India 2020 Maharaja (up to 12,110,967 shares), Intensive Softshare (up to 50,000 shares), IIFL Special Opportunities Fund (up to 3,110,056 shares),  among others.

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