December has begun with three major mainboard initial public offerings – Vidya Wires IPO, Meesho IPO, and Aequs IPO – all performing reasonably well, particularly Aequs IPO and Vidya Wires IPO. When considering valuations, issue size, grey market premiums, business model, and other factors, investors need to evaluate these elements before choosing which IPO to invest in.
Prasenjit Paul, an Equity Research Analyst at Paul Asset & Fund Manager of 129 Wealth Fund, noted that all the three IPOs are the best option largely hinges on whether an investor seeks quick listing profits or aims for a longer investment perspective.
According to Paul, for those pursuing immediate gains upon listing, Meesho is expected to draw the most attention. Aequs, which operates in the aerospace and consumer manufacturing sectors, stands to benefit from long-term trends such as the broader ‘Make in India’ initiative. Conversely, Vidya Wires operates in a stable yet less exciting sector that focuses on the production of copper and aluminum wires, which is a commoditized market.
“In summary, Meesho is best suited for investors looking for short-term listing gains, Aequs fits high-risk long-term investors, and Vidya Wires is the comparatively safer option for those who prefer stable, predictable businesses,” said Paul.
Further, Abhinav Tiwari, Research Analyst at Bonanza explained that for long-term investors, Aequs offers tangible visibility to profitability within 12-24 months and cash generation capability, while Meesho requires years to demonstrate sustainable unit economics and positive returns on capital invested, making it a higher risk venture with unproven near term value creation.
Let’s take a look at the grey market premium (GMP) trends and details:
Vidya Wires IPO GMP today
Vidya Wires IPO GMP today stands at ₹6. Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price of Vidya Wires is ₹58 apiece, which is 11.54% above the IPO price of ₹52.
Considering the grey market trends from the past six sessions, today’s IPO GMP is trending downward and is anticipated to decline further. The minimum GMP recorded is ₹6.00, whereas the maximum GMP stands at ₹10, as per expert opinions.
The public can subscribe to the IPO from December 3 to December 5, with a share price set between ₹48 and ₹52.
This initial public offering includes a fresh issue of shares amounting to ₹274 crore, alongside an Offer For Sale (OFS) of 50.01 lakh shares valued at ₹26 crore.
The company intends to use the net proceeds to finance capital expenditures for new projects in its subsidiary ALCU, repay debt, and cover general corporate expenses.
Vidya Wires is among the leading manufacturers of winding and conductivity products catering to various essential industries and applications.
Meesho IPO GMP today
Meesho IPO GMP today stands at ₹49. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Meesho is indicated at ₹160 apiece, which is 44.14% higher than the IPO price of ₹111.
Considering the grey market activities from the last 7 sessions, today’s IPO GMP is trending upward and anticipates a solid listing. The lowest GMP stands at ₹33.00, while the highest GMP is ₹49, as per expert analysis.
Meesho IPO opens for subscription on December 3 and will close on December 5. The company has established a price range of ₹105-111 per share, which values Meesho at ₹50,096 crore (USD 5.6 billion) at the maximum price point.
The IPO includes a fresh issuance of shares totaling ₹4,250 crore, in addition to an OFS of 10.55 crore shares estimated at ₹1,171 crore at the upper price limit, bringing the overall issue size to ₹5,421 crore.
The OFS features the sale of equity shares by several of Meesho’s early investors, such as Elevation, Peak XV, Venture Highway, and Y Combinator, among others.
Meesho intends to use the funds raised for investments in cloud infrastructure, marketing and brand development, as well as to support inorganic growth through acquisitions and other strategic initiatives, along with general corporate purposes.
Aequs IPO GMP today
Aequs IPO GMP today stands at ₹46.5. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Aequs is indicated at ₹170.5 apiece, which is 37.50% higher than the IPO price of ₹124.
According to the grey market activities observed over the past week, the IPO’s GMP is trending upwards today, indicating a potentially strong listing. Experts note that the lowest GMP recorded is ₹18.00, whereas the highest is ₹46.50.
The initial public offering will begin accepting subscriptions on December 3 and conclude on December 5. The price range has been established between ₹118 and ₹124 per share for the offering, which places Aequs’s valuation at over ₹8,300 crore.
The IPO consists of a new share issuance valued at ₹670 crore, in addition to an offer for sale (OFS) of 2.03 crore shares worth ₹252 crore from promoters and existing stakeholders, bringing the total size of the issue to ₹922 crore.
The proceeds from the new share issuance will be allocated to pay down loans incurred by the company and its two subsidiaries — AeroStructures Manufacturing India and Aequs Consumer Products; to acquire machinery and equipment for the company and AeroStructures; and to facilitate future expansion through possible acquisitions and other strategic initiatives, as well as for general corporate purposes.
While Aequs primarily functions in the aerospace sector, it has gradually broadened its range of products to encompass consumer electronics, plastics, and consumer goods.
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.
