“Most deals in the NSE shares are done by institutions such as Kotak, Axis, Edelweiss, and IIFL, and some unlisted brokers. Their deal sizes are large, sometimes in lakhs of shares,” said Umesh Paliwal, Co-Founder of UnlistedZone
‘The stock is quoting around Rs 3200-3300 for small lots i.e., 100 shares, meanwhile, for a lot size of 1000 shares it is quoting around Rs 3000 apiece.”
“Five years back, it was mostly from HNIs but now, retail investors are also participating” said Umesh Paliwal, Co-Founder of UnlistedZone
“The IPO is delayed over the valuation concerns, which are likely to persist in the coming days. The market may not give the expected valuations even this time”.
The stock has corrected to the Rs 180 level for now but the sale of media and broadcasting rights would be a major trigger for the South India-based franchise.
Dinesh Gupta, co-founder, UnlistedZone, said the company is trading around Rs 170-175 in the Pre-IPO market. He expects IPO to be priced in the range of Rs 175-200 per share.
“Tega Industries is a leading producer of specialized and critical to operate products which is having high barriers to sustitution, which give it a good moat. Tega Industries has shown excellen top-line and bottom-line and, IPO based on FY21 earnings looks reasonably priced. However, due to subdues market conditions lately, the GMP fell from a high of Rs 400 to Rs 325 level now. And with the 666 times the HNI Subscription, there are high chances of loss for leveraged. HNIs. For retail clients, it will give very good returns”, sais Umesh Paliwal, Co-founder of InvestorZone.
Dinesh Gupta, co-founder, UnlistedZone, said the number of buyers has trimmed in the markets. Neither the FIIs or the HNIs were actively buying right now. Investors have learnt their lessons from Paytm and Star Health, he said. “There are multiple issues in the pipeline and investors have to pick up and choose from issues.” he added. “Funds are limited and will be distributed among the issues, pinching the grey market.”
“As far as the Unlisted market is concerned, Paytm’s poor listing is the single biggest factor behind the fall in other Unlisted stocks” said Dinesh Gupta, Director UnlistedZone.
Umesh Paliwal, Co-founder, UnlistedZone said “Fino Paytech is the holding company of Fino Payments Bank, whose IPO has been approved. The big names have invested in Fino Paytech, not the Bank”
“At current valuations, the company is available at less than twice the sales-to-market cap, which makes it a decent bet,” said Dinesh Gupta, co-founder of Delhi based UnlistedZone. “However one should wait for the latest numbers.”
Umesh Paliwal, co-founder, UnlistedZone, said the size of rights issue is very small and companies are doing it to set a benchmark for pricing before the IPO
Umesh Paliwal, Co-founder, UnlistedZone, said many investors used to see the one-year lock-in after IPO as a key risk to their investment. “The move is likely to increase the volume and number of participants in the market in coming days”.
“That pricing premium has remained intact. However, these shares have now been split into 1:10 in anticipation of a similar dilution by Paytm through a bonus issue ahead of its IPO. That is why the unlisted shares in the grey market are now trading at around INR 2,300-2,400,” said Dinesh Gupta of Unlisted Zone
Umesh Paliwal, co-founder at UnlistedZone, said the company has a huge order book in India and Brazil. The company’s record of efficient and swift order execution adds to its attraction.
Furthermore, Umesh Paliwal, co-founder at UnlistedZone said the performance of recently listed stocks and interest in the market for IPOs should also aid the sentiments at the time of listing.
In the unofficial market for trading in unlisted shares, GR Infra is trading at a premium of Rs 330-340 per share, said Dinesh Gupta, Founder of UnlistedZone, a dealer in unlisted shares. This translates into a 41 per cent premium over the price band.
“The company lacks an attractive business model. The financials, too, do not enthuse much,” said Umesh Paliwal, Co-founder, UnlistedZone.
“The entire stake sale will take place through OFS. Thus, not a single penny will come into the company’s books,” he said. “But the IPO market is bullish, and the issue should sail through comfortably, justifying the grey market premium,” he said.
Umesh Paliwal, Co-founder of UnlistedZone, said the company is completely focused on mobile manufacturing. “It is focusing on 5G mobile phones in the budget segment. This is likely to be a big push going forward,” he said.
Umesh Paliwal, Co-founder of UnlistedZone, named Nazara Technologies, HDB Financial Services, NCL Buildtek and Manjushree Technopack as his top picks.
Paliwal said NCL Buildtek, formerly known as NCL Alltek & Seccolor, is likely to gain traction due to anticipated boom in the infrastructure and real estate sectors. The stock currently trades at an off-market price of Rs 160-170.
In the grey market, ahead of their listing, Mazagon Docks is trading at a premium of Rs 106 per share but UTI AMC was down Rs 23 apiece, Dinesh Gupta, Partner, UnlistedZone told Financial Express Online.
“That means there will be less selling pressure on the listing day, as most of the shares will be with investors, who bought them for the long term. Therefore, prices will be stable on the first day of trading. Listing should be at around 40-50 per cent premium,” Umesh Paliwal, co-founder at UnlistedZone, a firm that deals in unlisted shares.
“IPOs come when the market flourishes. US elections are scheduled for November, which will trigger volatility. So, there may not be many issues during October-November. Fresh issues will come only December onwards,” said Paliwal.
Dinesh Gupta of Delhi-based UnlistedZone said the stock has deep value with strong investors like Radhakishan Damani and LIC of India backing it. “As the tournament comes closer, the stock is likely to move northward and there is little room for downside,” he said.
Gupta senses emotional reaction to the stock on Dhoni’s retirement. “It may affect the brand for a while, but ultimately performance of business will improve,” he said.
Dinesh Gupta of Investor Zone said the stock is trading at a Rs 170-180 premium over the past few days and has not fallen below that level. At a Rs 180 premium, the stock would see a 42.35 per cent listing pop.
“The IPO was to come in March, but due to Covid-19 disruptions, it was put on hold. That said, the period since then has been quite good for the chemicals sector. And the IPO came in at the right time. Peer stocks such as Galaxy Surfactants NSE 0.03 % and Fine Organics were performing well and the Rs 500 crore issue received bids for shares worth over Rs 27,000 crore,” Gupta said.
“The size of FPO is significant. It is very unlikely that the issue would get subscribed multiple times. Thus, chances of allotment are very high. Investors are reluctant to buy this at a premium,” said Dinesh Gupta of Investor Zone.
“Since it is an FPO, there is no price discovery involved, and chances of listing gains are limited. Investors are aware of the risk-reward. This limits investor response to the issue,” Gupta said.
“If the IPL does take place this year, the scrip may rise to Rs 45-50 levels, considering the euphoria in the secondary markets and quality of the stock,” said Dinesh Gupta of Unlisted Zone.
“MS Dhoni is one of the biggest reasons for holding up the CSK stock in the unlisted space. Many investors have bought the stock only because of Dhoni. If he decides to hang up his boots, it may see a 25-30 per cent correction,” he said.
“After the recent meltdown, investors have an opportunity to buy quality listed names at reasonably discounted prices. It is very unlikely that they would rush to lesser-known unlisted space now,” said Dinesh Gupta of Unlisted Zone.
“Overall, the unlisted space has been performing better for a few years. We expect Calendar 2020 to be very fruitful,” said Dinesh Gupta of UnlistedZone.
Data provided by Unlisted Zone showed B9 Beverages has grown its revenues from Rs 4.14 crore in FY16 to Rs 31.96 crore in FY17 and Rs 160.24 crore in FY 18. The company reported net loss of Rs 12.32 crore, Rs 55.06 crore and 21.37 crore, respectively, for those years.
Dinesh Gupta said the company’s products are in short supply because of high demand. “The stock is not widely available, as it is a private limited company. Thus, the maximum number of stakeholders is 200 only. We are strictly adhering to the minimum quantity of shares fixed at 100 shares,” he said.
Gupta further said people are buying B9 because it has been creating some buzz. “The stock is on a high in the short term because of sentiment. It should come down,” he said.
Expert Take: Dinesh Gupta of Unlisted Zone says the company has lost some of its lustre lately. However, it has been aggressive in acquisition, having recently acquired a stake worth Rs 7.5 crore in India’s leading quiz app Sports Unity.
Gupta of UnlistedZone said developments in YES Bank and RBL Bank have led to a carnage of this stock in the unlisted market as there are better bets in the market.
Expert Take: Gupta said Studds would be the biggest beneficiary of the new Motor Vehicles Act. There is high demand for helmets in the market and the company has biggest market share. He pointed out that non-ISO-certified helmet manufacturers are soon going to be fined heavily.