Two new companies will list on the stock market on Monday, June 2. Leela Hotels and Aegis Vopak Terminals will make their debut on the stock exchanges, and investors are waiting to see which one performs better on the first day of trading.
Both companies had their initial public offerings (IPOs) open for subscription from May 26 to May 28. While both IPOs were fully subscribed, they did not see very high demand during the bidding period.
SUBSCRIPTION DETAILS
Leela Hotels IPO was subscribed 4.72 times overall. Within this, the Qualified Institutional Buyers (QIB) portion was subscribed 7.82 times, the Non-Institutional Investors (NII) portion 1.08 times, and the retail investors’ portion only 0.87 times.
On the other hand, Aegis Vopak Terminals IPO was subscribed 2.20 times overall. The QIB portion was subscribed 3.47 times, retail investors subscribed 0.81 times, and NII only 0.59 times.
This shows that institutional interest in Leela Hotels was higher compared to Aegis Vopak Terminals. However, both IPOs saw weak demand from retail and NII categories.
ISSUE SIZE AND STRUCTURE
Leela Hotels aimed to raise Rs 3,500 crore through its IPO. This included a fresh issue of 5.75 crore shares worth Rs 2,500 crore and an offer for sale (OFS) of 2.30 crore shares worth Rs 1,000 crore.
In comparison, Aegis Vopak Terminals planned to raise Rs 2,800 crore through a complete fresh issue of 11.91 crore shares. There was no offer for sale in its IPO.
IPO PRICE AND INVESTMENT DETAILS
The price band for Leela Hotels IPO was set at Rs 435 per share. The minimum lot size for retail investors was 34 shares, which meant an investment of Rs 14,042. Investors were advised to apply at the cut-off price, which raised the minimum amount to around Rs 14,790.
For small non-institutional investors (sNII), the minimum lot size was 14 lots (476 shares) worth Rs 2,07,060. For big non-institutional investors (bNII), it was 68 lots (2,312 shares), costing Rs 10,05,720.
Aegis Vopak Terminals set its IPO price band at Rs 235 per share. The minimum lot size was 63 shares, and the minimum investment by retail investors came to Rs 14,049. To avoid issues during oversubscription, investors were advised to apply at the cut-off price, which took the investment amount to Rs 14,805.
For sNII, the minimum investment was 14 lots (882 shares) worth Rs 2,07,270, and for bNII, it was 68 lots (4,284 shares) costing Rs 10,06,740.
GMP AND LISTING PRICE ESTIMATE
As of June 2 at 7:36 AM, the grey market premium (GMP) for both IPOs has fallen.
Leela Hotels IPO had a last GMP of Rs 2. This means the expected listing price is Rs 437 (Rs 435 cap price + Rs 2 GMP). The expected gain per share is just 0.46%. This suggests that the IPO might list with very little profit for those who got the shares during the issue.
In contrast, the GMP for Aegis Vopak Terminals IPO shows a discount. The IPO was priced at Rs 235, but the estimated listing price is now Rs 234, indicating a possible loss of Re 1 per share. This means Aegis Vopak Terminals might list below its issue price.