April 25, 2024
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IPO listing price Estimate:
Vodafone Idea Listing price estimate
Vodafone Idea is the third largest telecommunications service provider in India based on subscriber base. According to the GSMA Intelligence Database, it is the sixth largest cellular operator globally in terms of number of subscribers in a single country of operations. Through its pan India network, it offer voice, data, enterprise and other value added services, including short messaging services and digital services across 2G, 3G and 4G technologies.
Size: This being a mainboard FPO, the issue size of Rs. 18000 Cr is very large. and as expected the retail portion has barely received one time subscription and that too because of strong buying in the grey market.
Financials: During last 3 years, the company has shown huge losses. and even with this FPO, repayment of huge loan burden is difficult to repay.
In our IPO analysis, we had mentioned “one may get small returns on listing. Chances of allotment are very high” and accordingly most of the retail investors have got full allotment. The market price of the scrip on 24 April 2024, a day prior to the listing was Rs. 13.10.
The technical analysis of the scrip suggest beginning of the long term uptrend.
Grey Market Trend: During the course of IPO, the premium fluctuated between low of 50 paisa to high of Rs. 2.20. However major buying of the shares was around Rs. 1.40 to 1.70
What Can happen on listing? Because of full allotment to the retail applicants, many of the investors will be tempted to book profits and free up the funds. Many of the applicants have already sold their applications and the buyers of the applications have also sold off their stock during last 2 days. So huge selling pressure is not feared on 25 April. However the broader market is expected to open on weak note. Today morning, Asian markets also show down trend.
Considering all these factors, we expect the listing of Vodafone Idea in the range of Rs. 13.20 to 13.40 and during the day, it may decline to Rs. 12.90 on heavy selling pressure.
(estimate on 25 April 2024 @ 7.00 am)
Tata Technologies Listing price expected
Tata Technologies will surely be a blockbuster listing!
Tata Technologies, the first IPO listing in more than 19 years from the Tata Group, is likely to be a blockbuster debut on November 30. According to survey conducted by Chanakya, the listing premium may be around 95 to 105 percent over the issue price of Rs 500 per share. At 8.00 am on 30th November grey market premium is moving in the range of Rs. 425.
This means the opening price for the stock may be in the range of Rs 950 to 1010 per share, which experts attributed to the strong parentage, healthy financial performance, solid IPO subscription figures, and growth potential in the engineering services industry going ahead.
The last IPO from the Tata Group was Tata Consultancy Services in 2004.
The Tata Technologies IPO garnered significant attention in the stock market among the 5 IPOs launched last week, and received robust response from across categories of investors who have bought 69.4 times the issue size during November 22-24.
If we analyze the pattern of the applications, among the retail investors who have been allotted 30 shares, only about 40% of the applicants will come forward to dispose of the shares (Mainly the applicants, who have allowed their PAN Number to be used by others). Whereas out of HNIs, about 45% of the allottees are expected to be sellers. On the other side, from first minute, the counter is expected to see ALL BUYERS, because of extra-ordinary pentup demand from the investors who are fond of Tata brand.
The scrip during its first intra-day, is expected to touch Rs. 1140.
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