Strong subscription status leads to an increase in the Electronics Mart India IPO GMP. Given that the issue closes on Monday, should you apply?

Electronics Mart India IPO GMP: On December 14, 2023, subscriptions for Innox India Limited’s initial public offering (IPO) were accepted. The IPO will run through December 18, 2023. This indicates that there is just one day remaining for investors to submit their applications for the IPO. The public issue will end on Monday of next week. For the Innox India IPO, the maker and supplier of cryogenic equipment has set the price range at ₹627 to ₹660 per equity share. The public issue has been subscribed to 7.14 times after two days of bidding.

In the meantime, there has been an increase in the public issue’s grey market due to the strong customer demand over the previous two days. Stock market watchers claim that the company’s shares are trading at ₹535 per equity share, a premium of ₹205. This is a substantial increase over the company’s ₹330 Thursday closing price.

According to market watchers, the Innox India IPO’s grey market premium (GMP) is currently ₹535, a substantial increase from the ₹330 GMP on Thursday. This suggests a bullish trend on Dalal Street and a robust investor response. They stated that the grey market’s perception of Innox India’s shares has grown as a result of the bullish trend on Dalal Street and the positive investor sentiment. According to the grey market, listing gains from the public offer could potentially yield an 80% gain for investors.

The grey market premium (GMP), according to stock market experts, is not the best metric for predicting possible listing gains. They stated that because the grey market is unregulated and unrelated to the company’s balance sheet, it is wholly speculative.

The public issue of the Innox India IPO has been oversubscribed 7.14 times in the first two days of the subscription period, while the retail portion has been subscribed 8.17 times. The category designated for non-institutional investors (NIIs) has received 13.75 subs

Electronics Mart India IPO GMP.Is it worth applying for the Innox India IPO?

Innox India Limited is expected to benefit from long-term demand for cryogenic equipment given the global pressure to reduce carbon footprint and promote the use of clean energy sources like LNG and hydrogen,” BPE Equities wrote in their review of Innox India’s initial public offering (IPO).

With a strong product portfolio, a healthy order book, a focus on exports and a variety of market segments, and a dominant position in cryogenic equipment within India, the company is well-positioned to grow its operational scale going forward. Furthermore, the business has a track record of delivering solid financial results with a low debt load. Its over 25% robust RoE and RoCE give investors confidence in its steady business performance.

Brokers who tagged the IPO as a buy said, The company has demonstrated sustained growth in revenue, EBITDA, and PAT, with projected CAGRs of 27.5%, 21.9%, and 26.0% for the fiscal years 2021–2023. The issue is priced at a 39.2x P/E at the upper price band, which we think is fairly valuable given the earnings for the fiscal year 2023. We thus advise giving the issue a subscribe” rating.

Save more money. Get Mint+The Economist right now for ₹3999! Business News/Market/IPO/Innox India IPO: Strong subscription status drives up GMP. Since the issue closes on Monday, should you apply? GMP increases following the strong subscription status of Electronics Mart India IPO GMP. Since the issue closes on Monday, should you apply?

Electronics Mart India IPO GMP: According to market watchers, the company’s shares are presently offered on the grey market for between ₹627 and ₹660 per equity share, a premium of more than 80% over the issue price.

Date of Innox India IPO: Subscription for the public offering began on December 14, 2023, and will run through Monday, December 18, 2023.

Rajan Shinde, Research Analyst at Mehta Equities, commented, We believe that Innox India Limited offers investors an opportunity to invest in the specialized and technically advanced field of cryogenic equipment in which the company is a major player,awarding the’subscribe’ tag to the Electronics Mart India IPO GMP With thirty years of experience in the field, a well-known brand (INOXCVA), and a reputation for producing consistently high-quality goods, the company is one of the top exporters and suppliers of cryogenic equipment and solutions from India.

Electronics Mart India IPO GMP The company has a solid customer base and is well-equipped to meet the increasing demand for cryogenic storage tanks and equipment worldwide. In terms of its financial standing, the business has demonstrated strong growth in net profit at 35.8%/17% and revenue at 31.81%/23.40% over the course of operations between the financial years 2022 and 2023. Based on a price band valuation analysis, the issue is aiming for a ₹5,990 crore market cap demand at the upper price of ₹660.

In addition, Shinde said, “The company is demanding a P/E of 28.98x based on the fully diluted paid-up capital after the annual income for the financial year 2024 and post-IPO. This suggests that the valuation has been finalized, accounting for growth in sales and profits.

The IPO offer, which includes a 100% OFS (Offer for Sale) worth ₹1,459 crore, is something else investors should take note of. New investors may be concerned about this, but given the company’s strategic position in the specialized market—characterized by its dedication to innovation and widespread recognition—it may still have potential. high level of valuation. With an emphasis on alignment and quality, Innox India’s solid background in product development and well-established position in the cryogenic equipment market creates the conditions for ongoing success. Thus, we recommend that investors consider listing gains when they’subscribe’ to the IPO. Just that.