IPO GMP: Ajax Engineering IPO, Hexaware Technologies IPO to Quality Power IPO — how much gain grey market signals

IPO GMP: The typical excitement surrounding IPOs appears to have waned this week, with the Indian stock market facing notable selling pressure arising from concerns over elevated valuations, market fluctuations, and uncertainties in the global economy, significantly affecting the primary market. This week saw the launch of the Ajax Engineering IPO, Hexaware Technologies IPO, and Quality Power Electrical Equipments IPO, and experts believe that the investors’ response was influenced by various factors, including the Offer for Sale (OFS) factor, considerable losses in the secondary market, and a lack of comfort in the grey market.

IPO details

Regarding the issues, the initial public offering of concrete equipment manufacturer Ajax Engineering Ltd was fully subscribed on the final day of bidding on Wednesday, concluding the three-day share sale with a subscription rate of 6.45 times. The IPO from the company consists of a total offer-for-sale (OFS) of 2.01 crore shares, amounting to ₹1,269 crore at the highest end of the price range, from its promoters and an investing shareholder.

Hexaware Technologies IPO is also a complete offer-for-sale (OFS) of equity shares valued at ₹8,750 crore, initiated by its promoter CA Magnum Holdings, which is associated with the Carlyle Group. It closes today and is facing challenges in garnering sufficient interest.

The Quality Power IPO, which commenced today, includes a fresh issue of equity shares totaling up to ₹225 crore along with an OFS of 1.5 crore equity shares valued at ₹634 crore at the maximum price point. This brings the overall issue size to ₹859 crore, but the response so far has been tepid.

Which IPO to apply?

Arun Kejriwal, founder of Kejriwal Research and Investment Services, discussed the two distinct issues that are currently at play, stating that the first is a service-oriented IT company while the second is a manufacturing firm. It is challenging to compare the two since they operate within different industries. Furthermore, the non-comparability stems from the fact that one is in the power sector, which also includes a minor design and software component being conducted in Turkey, although that constitutes only a small fraction of their business. Essentially, it is a controlled system they provide for the equipment they supply, making any comparison utterly inappropriate.

In comparison to Hexaware, Quality might get good subscription numbers; however, its valuation is is not cheap by any stretch of imagination . If the market declines, a lackluster response can be expected.

Let’s take a look at the grey market premium trends:

IPO GMP

Ajax Engineering IPO GMP today

Ajax Engineering IPO GMP today or Ajax IPO GMP is +7. This indicates Ajax Engineering share price was trading at a premium of ₹7 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ajax Engineering share price was indicated at ₹636 apiece, which is 1.11% higher than the IPO price of ₹629 .

According to the grey market trends observed over the last 11 sessions, the present GMP ( ₹7) indicates a downward tendency. The minimum GMP recorded is 0.00, and the maximum GMP is ₹58.00, as stated by experts at investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Hexaware Technologies IPO GMP today

Hexaware IPO grey market premium is +2. This indicates Hexaware Technologies share price were trading at a premium of ₹2 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hexaware Technologies share price was indicated at ₹710 apiece, which is 0.28% higher than the IPO price of ₹708.

The current IPO GMP is showing a downward trend and is expected to decrease further due to grey market movements in the past nine sessions. As per specialists at investorgain.com, the minimum GMP stands at ₹2, while the highest is ₹19.

Quality Power IPO GMP today

Quality Power IPO GMP today is +14. This indicates Quality Power share price was trading at a premium of ₹14 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Quality Power share price is indicated at ₹439 apiece, which is 3.29% higher than the IPO price of ₹425.

According to the grey market activities observed over the last seven sessions, the IPO GMP is trending downward today and may continue to decline. Experts from investorgain.com report that the lowest GMP stands at ₹14, whereas the highest GMP reaches ₹135.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.