Glenmark Life vs Rolex Rings IPO: GMP, subscription and other details2 min read . Updated: 30 Jul 2021, 02:31 PM IST
- Glenmark Life Sciences IPO was subscribed fully on the first day led by strong demand from retail investors
With July being the season of initial public offerings (IPOs) hitting the Indian markets, two more public issues - Glenmark Life Sciences and Rolex Rings Limited - are up for subscription in the last week of the month. Glenmark Life's IPO opened for subscription on Tuesday whereas that of Rolex Rings opened for subscription on Wednesday.
Glenmark Life IPO has been subscribed nearly 45 times during the three-day IPO bid. Retail portion was booked 14 times whereas non-institutional investors (NIIs) 125 times and Qualified Institutional Buyers (QIBs) 37 times.
On the final day of the Rolex Rings IPO, the overall issue has been subscribed 50 times, which retail category bid 21.76 times and NIIs 103.4 times, QIBs over 61 times as of 2:30 pm, BSE data showed.
As per market observers, Glenmark Life Science's grey market premium (GMP) is around ₹145 per share today whereas Rolex Rings GMP has surged to ₹550.
Key details of the IPOs -
Glenmark Life Sciences: The price band for the initial share sale that will close on July 29 is fixed at ₹695- ₹720 per share. The IPO was subscribed fully on the first day led by retail investors, the overall issue subscribed at 2.84 on Day 1 with the retail investor portion subscribed 5.30 times and the non-institutional category 0.88 times. Qualified institutional buyers are yet to start bidding. The expected date of listing on the stock exchanges is August 6.
ICICI Direct said, ''GLS has a good performance execution and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend SUBSCRIBE to the issue.''
Considering the business growth outlook and almost stable operating margins, it assigns a “Subscribe" rating for the issue, Choice Broking said in a note.
Rolex Rings: The issue will close on Friday and the price band is fixed at ₹880-900 per share. The IPO comprises a fresh issue of ₹56 crore and an offer-for-sale (OFS) of up to 75 lakh equity shares by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC).
Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, ''Considering the FY-21 adjusted EPS of Rs.31.93 on a post-issue basis, the company is going to list at a P/E of 28.19 with a market cap of Rs.24,510 mn, while its peers namely Ramkrishna Forgings and MM Forgings are trading at a P/E of 123.30 and 37.14 respectively.''
''We assign a “Subscribe (With Caution)" rating to this IPO as the company is one of the leading forging manufacturers with a geographically diversified revenue base and is available at reasonable valuation as compared to its peers. However, the client concentration risk and CDR debt restructuring in the past keeps us cautious at the same time from a longer-term perspective,'' Joshi said.
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