Sansera Engineering IPO - Grey Market Premium

Sansera Engineering IPO - Grey Market Premium
IPO
by 5paisa Research Team 22/09/2021

The Rs.1,282.98 crore offer for sale of Sansera Engineering IPO had been priced in the band of  Rs.734 to Rs.744 per share. The issue had closed on 16-Sep and the basis of allotment had been finalized on 21-Sep. With demat credits to eligible shareholders on 23-Sep, the stock is slated to get listed on the bourses on 24-Sep, Friday. Ahead of listing, one of the key information metrices of evaluating the potential listing is the grey market premium (GMP). 

While the GMP is not an official price point, it is a popular informal price point. That is a good gauge of informal demand and supply for the IPO and gives a broad idea of how the listing is likely to be and how the post-listing performance is likely to be. While the GMP is just an informal approximation, it is generally observed to be a good reflection of the real picture. More than the actual price, it is the GMP trend that matters. 

One of the key factors that impacts the GMP is the extent of oversubscription and the Sansera Engineering issue was oversubscribed 11.47 times overall. On a granular basis, it was the QIB segment that saw 26.47X subscription while the other two segments were relatively lower. That has surely made the GMP premiums quite muted in the informal trading market. 

Check Sansera Engineering IPO Subscription

As per updates on Thursday, 22-Sep, the Sansera Engineering IPO is commanding a premium of Rs.38-40 range on the issue price. The GMP was steady at around Rs.35 for the previous 3 days but on Thursday, the stock GMP has spiked sharply to the range of Rs.38-40. The GMP did see a spike after the sterling response to the Paras Defence IPO

That translates into a 5.4% premium over the issue price of Rs.744 at the upper end of the price band. Also, it hints at a listing price of approximately Rs.784 when the stock lists on Friday 23-Sep. Of course, subsequent price performance will depend on the selling pressure that emerges during the day. 

 

Also Read:-

Sansera Engineering IPO - 7 Things to Know

Upcoming IPOs in 2021

Upcoming IPOs in September 2021

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Realty Index Touches All Time High After Record Home Sales by Godrej

Realty Index All Time High
by 5paisa Research Team 23/09/2021

In a market that has been largely obsessed with the rally in metal, FMCG and financial stocks, the realty story has been ignored. But the returns on some of realty stocks have been amazing. The Nifty Realty Index gained 8.6% on 22-Sep and it gained nearly 15% in 3 days. To top it all, the Nifty Realty Index is already trading at an all-time high. In the last 1 year, the Nifty Realty index is up 122%.

The table below captures the spike in major realty stocks from the lows of last one-year.
 

Stock Name

CMP (23 Sep)

52-Week Low

Returns from low

DLF Ltd

Rs.402.90

Rs.142.50

182.74%

Godrej Properties

Rs.2,182.05

Rs.819.75

166.18%

Macrotech Developers

Rs.1,105.00

Rs.422.60

148.46%

Prestige Estates

Rs.454.40

Rs.222.20

104.50%

Sobha Ltd

Rs.812.00

Rs.200.25

305.49%

Brigade Enterprises

Rs.421.00

Rs.154.55

172.40%

 

Data Source: NSE

The outperformance of realty companies in the last one year has been absolutely emphatic. The latest trigger came when Godrej Properties managed to sell property bookings worth Rs.575 crore in a single day, on launching its NCR project. The outperformance has been visible across companies that are prominent in key realty markets of India like Mumbai, NCR and Bengaluru. These are the companies that benefited the most.

The state governments have also helped the cause. For example, Mumbai alone is expected to see about 7,000 property registrations in Sep-21. Karnataka state has cut stamp duty on mid-range flats from 5% to 3%. Mumbai had adopted a similar strategy of waiving registration charges for properties some time ago.

Are there more fundamental triggers?

Rates are at historic lows with home loans available at around 6.6% for high-rated borrowers. There are a lot of global credit funds that have become active in India and are trying to fill the void left by NBFCs in realty funding. The net result is that Indian realty is finally looking up after a long spell of quiescence. That is good for asset classes overall.

Also Read: NSE Revises Stock Selection Criteria for Nifty Indices

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Sansera Engineering IPO lists at 9.07% premium but holds above Rs.800

Sansera Engineering IPO
IPO
by 5paisa Research Team 24/09/2021

Sansera Engineering had a sound listing on 24th September as it listed at a better premium than indicated by the GMP and managed to hold on to the gains. Sansera Engineering listed at a premium of 9.07% and traded through the day in a range of Rs.40. The stock closed the day, well above the listing price. With overall subscription of 11.47X, listing response was in line with the sound subscription. Here is the Sansera Engineering listing story on 24 September.

The Sansera Engineering IPO price was fixed at the upper end of the band at Rs.744 after the 11.47X subscription. The price band for the IPO was Rs.734 to Rs.744. On 24 Sep, the stock of Sansera Engineering listed on the NSE at a price of Rs.811.50, a premium of 9.07% over the issue price. On the BSE, the stock listed at a price of Rs.811.35, a listing premium of 9.05%.

On the NSE, Sansera Engineering closed on 24-Sep at a price of Rs.818.05, a first day closing premium of 9.95% over the issue price. On the BSE, the stock closed at Rs.818.70, a first day closing premium of 10.04% over the issue price. On both the exchanges, the stock of Sansera managed to hold and marginally build on its listing premium quite effectively.

On Day-1 of listing, Sansera Engineering touched a high of Rs.841.95 on the NSE and a low of Rs.801. On Day-1 of listing, the Sansera Engineering stock traded a total of 125.20 lakh shares on NSE amounting to value of Rs.1,028.89 crore. On Day-1, Sansera Engineering was the fourteenth most liquid stock on the NSE by trading value.

On the BSE, Sansera Engineering touched a high of Rs.842 and a low of Rs.800.80. On BSE, the stock traded a total of 11.43 lakh shares amounting to value of Rs.94.15 crore. On Day-1, Sansera Engineering was the thirteenth most liquid stock on the BSE by trading value.

At the close of Day-1 of listing, Sansera Engineering had a market capitalization of Rs.4,206 crore with free-float market cap of just Rs.1,010 crore. 

 

Also Read: 

Sansera Engineering IPO - 7 Things to Know

Upcoming IPOs in 2021

IPOs in September

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Subhash Chandra Takes Up a Good Deal on his Zee Stake

Subhash Chandra Takes Up a Good Deal on his Zee Stake
by 5paisa Research Team 24/09/2021

One week is a long time in the history of any business. We saw that live in the previous week as the erstwhile controlling promoters of Zee moved from a defensive position to a position of strength. Let us first rewind to Monday, 13th September.

That was the day, the stock of Zee saw a sudden rally. There were reports that two large institutional investors of Zee, viz. INVESCO and OFI China Fund wanted Punit Goenka, the son of Subhash Chandra, to resign from the position of MD and CEO. 

Their contention was that for the 3.44% holding in Zee Entertainment, the Subhash Chandra family was exercising inordinate clout. It was also confirmed that two directors; Ashok Kurien and Manish Chokhani had already resigned from the Zee Board.

If that looked like end-game for the Subhash Chandra family, that would have been a gross misjudgement. By 20th September, Zee Entertainment had announced a mega merger with Sony Pictures.

The idea was to combine the sports and general entertainment franchise of Sony Pictures with the strong regional content franchise of Zee. The term sheet also specified that Punit Goenka will continue as MD & CEO for 5 years.

Also Read :- What does the Zee merger with Sony mean?

If that looked like a symbolic victory for Subhash Chandra, more is on the way. The family stake was to get diluted from 3.44% to 2% due to the deal. However, Sony has topped up with an additional 2% stake to Subhash Chandra as part of the non-compete clause. 

This 2% will be given to Subhash Chandra out of the Sony Pictures stake. Effectively, Sony will end with just about 50.93% stake. In addition, Subhash Chandra also gets the option to increase this stake from 4% to 20% subject to terms and conditions. 

Sony has had it good too. While they are infusing $1.4 billion in cash into the new entity, they get access to the vast library and regional content stack of Zee. That is the perfect launching pad for its OTT initiatives and to take on the might of Disney Hotstar in India. In a way, it is good that the promoter does not lose control over his brainchild.

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BTST/STBT Trading Tips for Today: 24th September, 2021

BTST/STBT Trading Tips for Today
24/09/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide Buy Today Sell Tomorrow (BTST) and Sell Today Buy Tomorrow (STBT) ideas.

BTST/STBT Trading Ideas for Today

1. BTST : NIITLTD

- Current Market Price: Rs.380

- Stop Loss: Rs.374

- Target: Rs.395

 

2. STBT : SRTRANSFIN SEP FUT

- Current Market Price: Rs.1,353

- Stop Loss: Rs.1,366

- Target: Rs.1,325

 

3. STBT : INDIAMART SEP FUT

- Current Market Price: Rs.8,476

- Stop Loss: Rs.8,517

- Target: Rs.8,380

 

4. BTST : KAJARIACER

- Current Market Price: Rs.1,227

- Stop Loss: Rs.1,212

- Target: Rs.1,265

 

5. BTST : GHCL

- Current Market Price: Rs.421

- Stop Loss: Rs.416

- Target: Rs.434
 

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Casagrand to File DRHP for Rs.800 Crore IPO

Casagrand to file DRHP
by 5paisa Research Team 24/09/2021

With the NSE Realty Index at all time highs, there is a surge of interest in realty stocks. Chennai based Casagrand is the latest in the list of realty companies planning to file its draft red herring prospectus (DRHP) with SEBI for an initial public offer. The company plans to file the DRHP by early October but the actual issue may come only in the beginning of the next calendar year. The funds will be used to fuel its aggressive growth plans.

While the details of the IPO are yet to be firmed up, it is reported that the IPO size could be in the range of Rs.800-1,000 crore, which will include a fresh issue portion and also an OFS. Motilal Oswal and JM have been appointed lead managers for the issue. Casagrand had recently raised around Rs.1,200 crore from two reputed PE firms viz. Apollo Global and KKR.

While Chennai will be its core market, Casagrand plans to expand its Bengaluru franchise and also make a foray into Hyderabad. It plans to invest Rs. 1,500 crore in Hyderabad and Bengaluru. Going ahead, Bengaluru and Hyderabad are estimated to contribute 35% of revenues while Chennai will contribute 65%.

During the current year, the company plans to acquire land parcels with turnover potential of Rs.10,000 crore compared to Rs.6,000 crore last year. In terms of total sales revenues, Casagrand proposes to enhance its sales revenues from Rs.2,300 crore in FY21 to Rs.3,750 crore in FY22. It also hopes to gain from the revenge buying expected to emerge as the economy recovers from the lag effect of the pandemic.

While Casagrand is currently developing upmarket villas with an average ticket size of Rs.85 lakhs, it wants to largely focus on the affordable housing segment in the range of Rs.25 lakhs to Rs.45 lakhs. The broad plan is that by 2024, Casagrand will develop 25 million SFT of residential projects and 5 million SFT of office properties. In addition, it also plans to develop around 10 million SFT of warehouse logistics space.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in September 2021