IPO: Primary market action will continue as IPOs worth Rs 1,220 crore close next week

eMudhra’s ongoing initial public offering (IPO) will close for subscription on Tuesday, May 24, while specialty chemicals player Aether Industries will launch its first stake sale on the same day.

Cumulatively, issues worth Rs 1,220 crore will be closed in the coming week. This action was facilitated by the listing of Venus Pipers and Delhivery on Dalal Street.

“Given the global market slump and the poor listing and post-listing performance of

markets will be watching subscriptions from eMudhra and Aether Industries closely,” said Vijay Singhania, President of TradeSmart.

“Both companies have been profitable and have been in operation for a while, so they cannot be shot down as new era companies,” he added. “The size of the show is small and the two operate in relative slots, so underwriting may not be too difficult.”

The Rs 412.8 crore IPO of eMudhra was launched for subscription on Friday, May 20. The company is selling its shares in the range of Rs 243-256 each. The issue is open for subscription until Tuesday, May 24.

eMudhra is India’s largest trusted certificate authority. The Company’s business is divided into two verticals: Digital Trust Services and Enterprise Solutions.

It has strong expertise in digital signature certificates and is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe.

On the first day of the bidding process, the issue was subscribed at 48%, thanks to private bidders, whose allocation was reserved at 94%. HNI quotas got four percent bids.

Commenting on the matter, Sonam Srivastava, manager of smallcase and founder of Wright Research, said that eMudhra will be listed in a highly competitive market and investors should be cautious on the matter.

Meanwhile, Aether Industries will launch its IPO at Rs 808.04 crore on Tuesday, May 24. The company will sell its share in the range of Rs 610-648 each. The question will remain open until Thursday, May 26.

Aether Industries is an Indian specialty chemicals manufacturer focused on the production of advanced intermediates and specialty chemicals involving complex and differentiated core competencies in chemistry and technology.

Aether Industries has two manufacturing sites at Sachin in Surat, Gujarat. As of March 31, 2022, its product portfolio includes more than 25 products sold to more than 34 global companies in 18 countries to more than 154 domestic companies.

With a positive outlook on Aether Industries, Srivastava said it was a specialty chemicals maker in India with strong revenue and growth figures.

“Given the growing focus on specialty chemicals in the Indian government’s PLI program and China+1 strategy, we see this sector picking up steam soon,” she added.

Sentiments in Indian primary markets remain jittery after the muted listing of the LIC, which has fallen 13% since listing on May 17. Even the rating of Prudent Corporate Advisory disappointed investors.

Varun Sridhar, CEO

Money said the current market sluggishness is a good time for existing investors to review their asset allocation strategy and rebalance their portfolios.

“It should also be a good time for new investors to learn about the markets and take informed positions, as fundamental-driven investing will take center stage and long-term investors are likely to gain. “, he added.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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