Indian IPO pipeline stays busy as SME issues draw high premiums
India's primary market is set for a flurry of listings led by SBI Funds Management, with grey market premiums suggesting sustained retail appetite for new equity.
India is preparing for a busy stretch of initial public offerings, with six mainboard and small-to-medium enterprise issues either opening or listing this week. The pipeline is headlined by SBI Funds Management, the largest mainboard IPO on the schedule, which is pricing its offering at Rs 574 per share.
Institutional and retail attention is fixed on the SBI Funds Management launch, though its projected debut premium remains measured. The stock is trading at a grey market premium (GMP) of Rs 88, indicating an expected listing gain of 15.33%.
The broader set of issues highlights a stark divergence in market sentiment between established mainboard entities and smaller SME listings, where speculative demand is concentrated. Millworks Technologies, a BSE SME issue priced at Rs 331 per share, is commanding a GMP of Rs 390. This signals an expected premium of nearly 118% at debut, the highest among the upcoming offerings.
Other SME names are also drawing elevated unlisted market interest ahead of their trading debuts. Devson Catalyst and Happy Steels are both scheduled to list on July 16, boasting GMPs of 38% and 21% over their respective issue prices.
Two additional offerings are already in their subscription periods. Laser Power and Infra has been covered 1.05 times so far at a price of Rs 214 per share, carrying a GMP of Rs 36.5 for a potential 17% listing pop. Alpine Texworld, aiming to raise Rs 126.25 crore, will open on July 14 at Rs 105 per share. Its GMP stands at just Rs 2, pointing to a marginal 1.90% listing gain.
For market professionals, the spread between the SBI Funds Management premium and the explosive unlisted demand for SME floats underscores the fragmented nature of the current Indian IPO cycle. While blue-chip offerings attract steady allocation interest, the grey market data suggests excess liquidity continues to chase smaller-cap listings.
