Three Initial Public Offerings (IPOs)—Rentomojo, LCC Projects and Karamtara Engineering—are set to open for subscription tomorrow, 9 September.
The primary market is picking up pace in September, with a strong pipeline of new issues lined up for investors. Besides the much-anticipated mega IPO of NSE, which is likely to debut in September, six IPOs are scheduled to open on the same date, September 9. Together, these six companies, including Rentomojo, LCC Projects and Karamtara Engineering, are looking to raise more than ₹4,500 crore through their respective offerings.
ARCIL, Manipal Payment & Identity Solutions and Steamhouse India are the other three companies that will also open their IPOs tomorrow.
With bidding set to begin on Tuesday, 9 September, investors will be closely tracking the latest grey market premium (GMP) trends for the three issues. The GMP can provide an indication of how the market is currently valuing an IPO ahead of its official listing, although it is not a guaranteed indicator of listing performance.
So, which of the three IPOs is currently showing the strongest grey market signal and could potentially deliver a better listing performance?
Here is a comparison of Rentomojo, Karamtara Engineering and LCC Projects based on their latest GMP and key issue details.
Rentomojo IPO: GMP and issue details
The Rentomojo IPO is commanding a GMP of ₹127. Based on the upper end of its price band at ₹404 per share, the implied listing price works out to ₹531. This suggests a potential listing gain of 31.44% over the issue price.
Rentomojo plans to raise ₹1,255.57 crore through the IPO. The issue comprises 37.15 lakh fresh shares worth ₹150 crore and an offer for sale (OFS) of 2.74 crore shares aggregating to ₹1,105.57 crore.
The company has fixed the IPO price band at ₹384 to ₹404 per equity share. For retail investors, the application lot size has been set at 37 shares. Based on the upper price band, the minimum investment required for an individual investor is ₹14,948 for one lot of 37 shares.
As per the tentative schedule, the allotment of Rentomojo shares is expected to be finalised on September 15. The company’s shares are likely to make their debut on both the NSE and BSE on September 17.
Motilal Oswal Investment Advisors is the book-running lead manager for the IPO, while Kfin Technologies is acting as the registrar of the issue.
Karamtara Engineering IPO: GMP and issue details
Karamtara Engineering is currently commanding a GMP of ₹60. At the upper price band of ₹254 per share, the GMP indicates an estimated listing price of ₹314 per share. This translates into a potential listing gain of 23.62% over the issue price.
The company is seeking to raise ₹875 crore through the IPO. The issue consists of 2.66 crore fresh shares aggregating to ₹675 crore, along with an offer for sale of 78.74 lakh shares worth ₹200 crore.
Karamtara Engineering has fixed the price band at ₹241 to ₹254 per equity share. The lot size for investors has been set at 59 shares. At the upper end of the price band, a retail investor would need a minimum investment of ₹14,986 for one lot of 59 shares.
The IPO allotment is likely to be finalised on September 15, according to the tentative schedule. The company’s shares are expected to list on the NSE and BSE on September 17.
JM Financial is the book-running lead manager for the Karamtara Engineering IPO, while MUFG Intime India is the registrar of the issue.
LCC Projects IPO: GMP and issue details
The LCC Projects IPO is commanding a GMP of ₹30. Based on the upper price band of ₹146, the estimated listing price stands at ₹176 per share. This indicates a potential listing gain of 20.55% over the issue price.
LCC Projects is looking to raise ₹427.14 crore through the IPO. The issue comprises 1.77 crore fresh shares aggregating to ₹258 crore and an offer for sale of 1.16 crore shares amounting to ₹169.14 crore.
The company has set the IPO price band at ₹139 to ₹146 per equity share. The lot size for an application is 102 shares. Based on the upper price band, the minimum investment required by a retail investor is ₹14,892 for one lot of 102 shares.
The allotment of LCC Projects shares is expected to be finalised on September 15. The shares are likely to be listed on both the NSE and BSE on September 17, as per the tentative schedule.
Motilal Oswal Investment Advisors is the book-running lead manager for the IPO, while Kfin Technologies is the registrar of the issue.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
