An Overview of Recent Events
According to the bulk trades data, the MTBJ AC Nomura India Investment Fund purchased 10 lakh equity shares in specialty chemical company Clean Science & Technology on the NSE for Rs. 1,715.33 per share.
On the NSE, the Nomura Trust and Banking Co Ltd, as Trustee of the Nomura India stock Mother Fund, purchased 5 lakh equity shares in GR Infraprojects, a road sector contractor, for Rs. 1,714.6 per share.
On the NSE, Clean Science and GR Infraprojects closed 76.14 percent at Rs. 1,585.25 and 108.73 percent at Rs. 1,747.10, respectively, on their maiden day of trading. Choice Equity Broking sold 1,39,661 Mittal LifeStyle equity shares for Rs. 12.1 per share on the NSE, among other bulk trades. TCG Funds Fund 1 purchased 2,32,300 equity shares in Vishwaraj Sugar Industries at Rs. 142 per share on the NSE, while Basavaraj Channappa Mahashetti sold 1.96 lakh equity shares in the firm at Rs. 142.01 per share.
Tree Line Asia Master Fund (Singapore) Ptd Limited sold 8,85,692 equity shares in JustDial on the NSE for Rs. 1,041.15 per share and 9,01,387 equity shares on the BSE for Rs. 1,025.06 per share. Plutus Wealth Management LLP, on the other hand, purchased 9 lakh equity shares in the firm on the BSE for Rs. 1,022.13 per share.
Plutus Capital Management LLP purchased 23,000 equity shares in GTV Engineering at Rs. 21.67 per share on the BSE, while Alpha Leon Enterprises LLP sold 70 lakh equity shares in Vikas EcoTech at Rs. 1.8 per share on the NSE.
Clean Science is up 76 percent after a bumper listing for GR Infra at 2x the issue price
On Monday, GR Infraprojects and Clean Science & Technology both had strong stock market debuts. The shares of GR Infra, a road building company, closed at Rs. 1,747, up 2.1 times from their issue price of Rs. 837. Clean Science, a specialised chemical maker, saw its stock rise 76 percent to Rs. 1585.2, up from its IPO price of Rs. 900.
Behind Indigo Paints, GR Infra’s listing day gains were the best this year, while Clean Science’s leap is currently the fourth-best after the aforementioned two companies and MTAR Technologies. The spike comes a week before India’s first unicorn business, Zomato, goes public.
GR Infra and Clean Science’s initial public offerings (IPOs) drew bids totalling Rs. 1.73 trillion. Clean Science’s IPO was subscribed 95 times, while GR Infra’s was subscribed 103 times. 19 of the 25 IPOs so far this year have posted gains on the day of their initial public offering. Three of the remaining six firms’ shares have recovered and are now trading above their issue price, while the other three are trading only slightly below their issue price.
Both GR Infra and Clean Science’s initial public offerings (IPOs) were secondary share sales by promoters. Following a good beginning, GR Infra now has a market capitalization of Rs. 16,900 crores, while Clean Science has a market capitalization of Rs. 16,838 crores.
On their first day, GR Infra and Clean Science doubled investor wealth. What are the options for investors now?
The most recent Dalal Street debutants, GR Infraprojects and Clean Science and Technology, both had fantastic shows on the schedule. Despite negative secondary market sentiments, both firms doubled investors’ wealth on the first day.
Investors are emphasizing stockholders to record partial profits and retain the remaining stock for a longer period of time following the strong listing gains, as both players are fundamentally robust.
Investors who received the allotment might register partial profits in both firms. Many are bullish on Clean Science and Technology and recommend that a component of the portfolio be preserved for longer-term play.
On the NSE, GR Infra was listed at Rs. 1,715.85, a premium of 105 percent over its issue price of Rs. 837. The Udaipur-based firm debuted on the BSE at Rs. 1,700, a premium of 103.11 percent. GR Infra’s cautious valuation prompted the company’s reorganisation. On an FY21 EPS basis, the company issued shares at an 8.5 times price-to-earnings (P/E) ratio, which was exceptionally cheap compared to the other players.
Clean Science and Technology, meanwhile, debuted on the BSE at Rs. 1,784.40, a premium of 98.26% over its issue price of Rs. 900. The stock opened at Rs. 1,755 on the NSE, up 95%. Clean Science is expected to perform well in the following year. The company’s topline might double in the next 2-3 years.
Recently listed businesses have seen a significant gain, bolstering the sentiment even further for new debutants. Investors who have subscribed to the issue solely for the listing gains should consider booking profits, especially that the issue’s strong balance sheets and growth prospects made it a solid long-term investment.
The primary market, according to market investors, has sufficient liquidity and they do not want to miss the euphoria-inducing bus. Between July 7 and 9, both IPOs were sold. The issue of GR Infra received 102.58 subscriptions, while Clean Science received 93.41 subscriptions.