In the first week of December, three major IPOs opened in the Indian stock market. On Wednesday, Meesho, Vidya Wires, and Aquas IPOs are available for subscription. While there is some market fatigue, positive investment opportunities are present.
IPO Update: Three major IPOs opened for subscription in the primary market from Wednesday. Meesho, Vidya Wires, and Aquas IPOs are now available for investors. These three IPOs have become a significant point of attraction in the first week of December. Market experts suggest that investors might show some fatigue after a b IPO lineup in recent months, but attractive opportunities still exist in all three of these IPOs.
Meesho IPO Trend
Meesho IPO's Grey Market Premium (GMP) was at ₹49 on Wednesday. Based on the upper end of the IPO price band and the current GMP, the estimated listing price is considered to be approximately ₹160 per share. This is about 44 percent higher than the IPO price band of ₹111. Grey market trends over the past six-seven sessions indicate that Meesho's GMP has been consistently rising, signaling a b listing.
Meesho is an e-commerce platform backed by SoftBank. The company plans to raise ₹5,421 crore through this IPO. The IPO price band is ₹105-111 per share. At its upper end, the company's valuation comes to around ₹50,096 crore. Meesho's public offering will close on December 5, and allotment for anchor investors was done on December 2.
Aquas IPO Analysis and GMP
Aquas IPO's Grey Market Premium (GMP) was ₹46.5 on Wednesday. Based on the upper end of the IPO price band and the GMP, the estimated listing price is approximately ₹170.5 per share. This is about 37.5 percent higher than the IPO price band of ₹124.
Aquas is involved in contract manufacturing of consumer durables and aerospace parts. Its IPO will open on December 3 and close on December 5. The total issue size is ₹922 crore. Allotment for anchor investors was done on December 2. The company's business is linked to long-term structural themes like ‘Make in India’. However, it is still operating at a loss. Therefore, this IPO is better suited for investors who can tolerate long-term investment and high risk.
Vidya Wires IPO Trend and GMP
Vidya Wires' GMP was at ₹6 on Wednesday. Based on the upper end of the IPO price band and the Grey Market Premium, the estimated listing price is approximately ₹58 per share. This is about 11.5 percent higher than the price band of ₹52.
Looking at the GMP trends over the past seven sessions, some fluctuations have been observed. However, it still indicates a b listing. Vidya Wires manufactures copper and aluminum wires and winding products. The IPO size is ₹300 crore, and the price band is set at ₹48-52. Allotment for anchor investors will be on December 2, and subscriptions will remain open from December 3 to December 5.
Which IPO is Better for Investors?
According to Prasenjit Paul, Equity Research Analyst at Paul Asset and Fund Manager at 129 Wealth Fund, the IPOs of Meesho, Aquas, and Vidya Wires opened on December 3. The right choice depends on whether investors are seeking listing gains or making long-term investments.
For investors seeking listing gains, Meesho is the most attractive option. It operates in the rapidly growing e-commerce sector and has good growth prospects in Tier-2 and Tier-3 cities. However, it's worth noting that Meesho has only recently turned profitable, and its valuation is relatively high.
The Aquas IPO is suitable for long-term investors. It is associated with the aerospace and consumer manufacturing sectors and can benefit from structural themes. However, the company is currently operating at a loss, which implies higher risk.
Vidya Wires is a stable and safe option. It is a company that manufactures copper and aluminum wires. While listing gains might be lower, it is attractive for investors from a safe investment perspective.
