The first list will be Ethos on Monday, it’s a luxury watch retailer. It will be followed by eMudhra a few days later, a certification authority. Aether Industriesa special chemistry player, will debut on Friday.
Good condition of GMP
Ethos claims to have the largest luxury and luxury watch portfolio in India and retails for 50 luxury and luxury watch brands such as OmegaIWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, Carl F. Bucherer, Tissot, Weil, Louis Moinet and Balmain.
However, Dalal Street may not give it a luxury treatment on Monday due to its high valuation. Dealers on the unlisted or gray market say Ethos shares are trading at a peak of Rs 20, based on an IPO price of Rs 878, reflecting a negligible listing gain.
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Aayush Agrawal, Senior Analyst, said: “The company does not have a listed peer, but its valuation is too high even though the outlook is good and the current volatile market is not conducive to the investors. the main problem with such rich valuations.” “We expect a cautious listing because of the expensive valuation but cannot rule out any positive surprises in light of the improving market.”
eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organizations operating in various industries. The company and its shareholders have raised Rs 413 crore from primary markets.
The company sold its shares in the range of Rs 243-256 per share.
Dealers on the unlisted market say it is difficult to gauge the possible listing boost of the issue as hardly any transactions take place over the counter. Even so, given the market situation and past trends, the listing is expected to be weak.
Aether Industries GMP
Aether Industries is a manufacturer of specialty chemicals. The company is the sole manufacturer of several chemicals in India such as 4-(2-Methoxyethyl) Phenol (4MEP), 3-Methoxy-2-Methylbenzoyl Chloride (MMBC), Thiophene-2-Ethanol (T2E), Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valerolactone and Bifenthrin Alcohol.
Analysts were fairly optimistic about its future prospects but the issue had trouble capturing the attention of retail investors during the bidding process. Even so, thanks to a late increase in applications, especially from institutional investors, the problem has finally been resolved.
Unlisted Zone’s Dinesh Gupta says Aether Industries is trading at a GMP of Rs 29-31 on unofficial markets. At an IPO price of Rs 642 this reflects a premium of around 5% which is not much.
A lot will depend on market conditions through Friday to see if the issue can hold the premium or rise further.