Street signs: Adani Wilmar GMP at 40%, Asia's big IPO flops, and more

Adani Wilmar GMP at 40%
 
Shares of Adani Wilmar are changing hands at a premium of nearly 40 per cent ahead of its IPO. Market players said shares of the company, that owns Fortune brand edible oil, changed hands at a premium ranging between Rs 80 and Rs 90 last week. The Adani group firm has set the price band for the IPO at Rs 218-230 per share. At the top-end, the company will have a market cap of nearly Rs 30,000 crore. Through the IPO, Adani Wilmar is raising Rs 3,600 crore in fresh capital. “The grey market premium is healthy despite the selloff in the market. Most Adani group stocks have generated phenomenal returns. As a result, investors will be enthused by this IPO,” said an analyst.

 
FPIs offload shares
 

After starting the year with net purchases, FPIs have turned net sellers this month, offloading shares worth Rs 8,521 crore, NSDL data up to January 21 shows. "Five days of consecutive weak trends in the US has impacted market sentiment. This might have influenced FPIs' decision to sell in India, which they consider overvalued," said VK Vijayakumar, chief investment strategist at Geojit Financial Services. The benchmark BSE Sensex is up 1.3 per cent this year, having shed 3.7 per cent last week.
 
Asia’s big IPO flops
 
The stock markets of India and Indonesia have many things in common. Both are key components of the emerging market (EM) and Asia Pacific baskets. In recent weeks, the Asian nations have earned one more common trait —something both would have liked to avoid. The biggest IPOs of India as well as Indonesia have turned out to be big flops. India’s Paytm, which came out with the largest-ever $2.4 billion IPO in November, has seen its share crash 55 per cent over its IPO price. Meanwhile, Indonesia’s e-commerce major PT Bukalapak.com too has lost over half its value since raising $1.5 billion in the country’s biggest public offering. “Both these listings don’t bode well for both countries who have a large number of startups and upcoming tech listings,” said an investment banker.