IPO GMP: Meesho Vs Aequs Vs Vidya Wires; Check Grey Market Trends On Final Day Of Subscription

The primary market will witness the conclusion of the three mainboard IPOs on Friday, December 5. The grey market premium for the leading e-commerce platform Meesho, diversified contract manufacturing company Aequs, and metal wires producer Vidya Wires will be in the spotlight today as the subscription enters its third and final day.

All three IPOs, which were fully subscribed on Day 1, witnessed further subscription growth with Meesho getting subscribed 7.97 times, Aequs 11.1 times and Vidya Wires 8.26 times on Thursday.

As subscription enters its final day, the grey market premium for these three IPOs continues to top the 'Business and Finance' trending charts. Private market investors are anticipating strong listing gains of up to 40%. However, one must note that the grey market is unregulated (not governed by authorities like SEBI) and speculative; it can fluctuate wildly. Therefore, investors use it as a sentiment gauge, but not as a guaranteed prediction.

Here’s what the latest grey market trends suggest for the three IPOs on Day 3 of subscription.

The latest grey market premium (GMP) for the Meesho IPO stood at Rs 49.5 per share on December 5. Compared to the upper end of the price band of Rs 111, the latest GMP indicates an estimated listing price of Rs 160.5 apiece. Shares of Mesho Ltd. are expected to list at a 44.59% premium over the issue price.

About Meesho IPO

Meesho aims to raise Rs 5,421.2 crore through its IPO. The book-building issue comprises a fresh issuance of 38.29 crore shares, aggregating to Rs 4,250 crore and an offer-for-sale (OFS) of 10.55 crore shares, worth 1,171.2 crore.

The IPO price band has been set at Rs 105 to Rs 111 per share. The lot size for the IPO comprises 135 shares. Retail investors need to apply for at least one lot, with a minimum investment of Rs 14,985 per application.

Kotak Mahindra Capital Co. Ltd is the book-running lead manager, and Kfin Technologies Ltd. is the registrar of the issue.

Use Of IPO Proceeds

The company will use Rs 1,390 crore from the proceeds to invest for cloud infrastructure, in Meesho Technologies Pvt. Ltd, its subsidiary, while Rs 480 crore will be used for payment of salaries of existing and replacement hires for the Machine Learning and AI and technology teams. The company will also allocate Rs 1,020 crore to marketing and brand initiatives in its subsidiary Meesho Technologies.

The latest GMP for the Aequs IPO stood at Rs 41 on December 5. The GMP indicates an estimated listing price of Rs 165 per share against the upper price band of Rs 124. The latest GMP hints at a potential premium of 33.06% over the issue price.

About Aequs IPO

The Aequs IPO is a book-building issue worth Rs 921.81 crore. The IPO comprises a fresh issuance of 5.4 crore shares, amounting to Rs 670 crore and an OFS portion of 2.03 crore shares, aggregating to Rs 251.81 crore.

The IPO price band has been set at Rs 118 to Rs 124 per share.

Retail investors should apply for at least one lot size of 120 shares. The minimum bid amount for retail investors is Rs 14,880 per application.

JM Financial Ltd. is the book-running lead manager, and Kfin Technologies Ltd. is the registrar of the issue.

Use Of IPO Proceeds

The company has proposed to use a major portion of the IPO funds for repayment of debts. A portion of the funds will also be used for capital expenditure for the purchase of machinery and equipment. The company will utilise remaining funds for inorganic growth and general corporate purposes.

The latest GMP for Vidya Wires IPO was Rs 5.5 per share as of December 4. Compared to the upper limit of the issue price of Rs 52, the GMP indicates an estimated listing price of Rs 57.5 apiece at a premium of 10.58%.

About Vidya Wires IPO

The Rs 300-crore IPO comprises a fresh issue of 5.27 crore shares, worth Rs 274 crore and an OFS component of 50 lakh shares, amounting to Rs 26.01 crore.

The price band for Vidya Wires IPO has been set at Rs 48 to Rs 52 per share.

Retail investors are required to apply for one lot of 288 shares, amounting to an investment of Rs 14,976, based on the upper limit of the issue price.

Pantomath Capital Advisors Pvt. Ltd. is the book-running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.

Use Of IPO Proceeds

Vidya Wires has proposed allocating Rs 140 crore from the IPO funds towards capital expenditure for setting up a new project under its subsidiary. The remaining IPO proceeds will be used for debt repayment and general corporate purposes.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.

The companies are scheduled to finalise the share allotment for their IPOs on December 8. Shares of all three companies are expected to liston the NSE and BSE on December 10.

Refunds and transfer of shares to the Demat accounts will be initiated on December 9.  

GMP Disclaimer: The final listing price is determined by the official price discovery mechanism on the stock exchange on listing day, which is influenced by official subscription data, anchor investor interest, and overall market conditions, not just the GMP.