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

The ongoing initial public offering (IPO) of eMudhra will close for subscription on Tuesday, May 24, while the specialty chemical player Aether Industries will launch its primary stake sale on the same day.

Cumulatively, the issues worth Rs 1,220 crore will close in the upcoming week. This action was further aided by the listing of Venus Pipers and Delhivery on Dalal Street.

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

markets will be keenly watching the subscriptions of eMudhra and Aether Industries, ” said Vijay Singhania, Chairman, TradeSmart.

“Both the companies are profitable and running for a while, so they may not be beaten down like new-age companies,” he added. “The issue size is small and both are operating in relative niche areas, so subscription may not be too difficult.”

The Rs 412.8 crore IPO of eMudhra had kicked off for subscription on Friday, May 20. The company is selling its shares in the range of Rs 243-256 apiece. The issue is open for subscription till Tuesday, May 24.

eMudhra is India’s largest licensed certifying authority. The company’s business is divided into two verticals — Digital Trust Services and Enterprise Solutions.

It has strong digital signature certificate expertise and is the only Indian company to be directly recognised 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 48 per cent, thanks to retail bidders, whose allocation was booked at 94 per cent. HNI quotas fetched four per cent bids.

Commenting on the issue, Sonam Srivastava, smallcase manager and Founder, Wright Research, said that eMudhra will be listed in a highly competitive market and investors need to be selective over the issue.

Along with it, Aether Industries will launch its Rs 808.04 crore IPO on Tuesday, May 24. The company will sell its share in the range of Rs 610-648 apiece. The issue will remain open till Thursday, May 26.

Aether Industries is a speciality chemicals manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.

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

With a positive outlook on Aether Industries, Srivastava said that it is a speciality chemicals manufacturer in India with solid revenue and growth numbers.

“Given the increasing focus on the speciality chemicals in the GOI’s PLI scheme and China+1 strategy, we see this sector come in flavor soon,” she added.

The sentiments in the Indian primary markets remain jittered following the muted listing of the LIC, which dropped 13 per cent since its listing on May 17. Even the listing of Prudent Corporate Advisory disappointed the investors.

Varun Sridhar, CEO

Money, said that the current subdued market sentiment is a good time for existing investors to take a look at their asset allocation strategy and rebalance their portfolios.

“This should also be a good time for new investors to learn about the markets and take informed positions as fundamentals led investing is going to take center stage, and long term investors are likely to win,” he added.

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