 "Pre-IPO market turns hot on RBL")
Shares of private sector lender RBL Bank (formerly The Ratnakar Bank) are commanding a 20 per cent premium in the grey market, said market players. Its initial public offering (IPO) of shares opens for subscription on Friday. The IPO is estimated to raise Rs 1,214 crore.
The grey market refers to unofficial trades, on channels not illegal but outside those authorised.
The price band for the IPO is Rs 224-225 and investors can apply in multiples of 65 shares. Grey market operators in Gujarat and Mumbai are paying up to Rs 3,000 a share to retail (small) investors for one lot (65 shares) of applications, said a broker. In the grey market, shares of unlisted companies are traded among a close-knit group. Market players said these operators are paying a 20 per cent premium in expectation the shares could soar even higher on listing. The average day-one return for the previous five IPOs was 25 per cent.
IPOs such as those of Quess Corp and Advanced Enzyme Technologies had generated Rs 24,000 crore each of IPO financing demand from rich investors or HNIs, said officials at these leading brokerages.
BROKERAGES ON RBL IPO
ANTIQUE
We see little upside in the near term. Subscribe only from two-three years' perspective.
PRABHUDAS LILADHER
We believe it is fully valued and investors should subscribe with a long-term view.
The grey market refers to unofficial trades, on channels not illegal but outside those authorised.
The price band for the IPO is Rs 224-225 and investors can apply in multiples of 65 shares. Grey market operators in Gujarat and Mumbai are paying up to Rs 3,000 a share to retail (small) investors for one lot (65 shares) of applications, said a broker. In the grey market, shares of unlisted companies are traded among a close-knit group. Market players said these operators are paying a 20 per cent premium in expectation the shares could soar even higher on listing. The average day-one return for the previous five IPOs was 25 per cent.
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Demand from high net worth individuals (HNIs or rich people) for the IPO is also expected to be high. IPO-financing entities said they were already seeing healthy funding enquiries from potential bidders and HNI bids could surpass Rs 20,000 crore. India Infoline, Edelweiss, and JM Financial are some of the leading IPO-financing entities.
IPOs such as those of Quess Corp and Advanced Enzyme Technologies had generated Rs 24,000 crore each of IPO financing demand from rich investors or HNIs, said officials at these leading brokerages.
BROKERAGES ON RBL IPO
- ANGEL BROKING
We believe the issue is attractively priced. Given the growth prospects, we recommend a ‘subscribe’.
We see little upside in the near term. Subscribe only from two-three years' perspective.
We believe it is fully valued and investors should subscribe with a long-term view.