Delhivery | Venus Pipes : What is grey market signalling for the listing of Delhivery and Venus Pipes?


New Delhi: Amid the sharp recovery in the secondary market, two companies – Delhivery and Venus Pipes & Tubes are all set to make their debut at Dalal Street on Tuesday.

However, the grey market is not very enthusiastic about the upcoming listing as the premia in the unofficial market is signalling a muted debut for the listing-bound companies.

Delhivery, the new age logistics player, is exchanging hands at a mild discount of up to Rs 5 over the issue price of Rs 487. However, the numbers of trades have remained negligible, the sources from the grey market said.

The Rs 5,235 crore initial public offering (IPO) of the supply chain and logistics solution provider was open for subscription between May 11-13 as the company sold its shares in the range of Rs 462-487 apiece.

The issue was overall subscribed 1.63 times, thanks to strong bidding from the QIBs. However, retailers, HNI and employees kept off the bidding process, whose portion wasn’t even fully subscribed.

Abhay Doshi, co-founder, UnlistedArena said that there were major concerns over the valuations of the company, which kept the investors away from the issue and subscription figures say it clearly.

“After the recent rout in the startup stocks and new-age companies, investors have remained sceptical over the issue,” he added. “Investors do not want to burn their hands further.”

Another listing candidate, Venus Pipes and Tubes, is commanding a premium of Rs 35-40 or 10-12 per cent in the grey market over the issue price of Rs 326. It is signalling a mild listening pop.

The manufacturer and exporter of stainless steel pipes and tubes raised Rs 165.42 crore through its IPO, sold between April 11-13 in the price range of Rs 310-326 apiece.

The issue was overall subscribed 16.31 times. Retailers led the bidding, with more than 19 times, subscription for their portion, whereas QIB and HNI portion was subscribed 12 times and 15.7 times, respectively.

Doshi said that the company might see a mild listing pop thanks to the higher subscription. “However, the smaller size of issue inflated the subscription status for the company.”

Other market experts are also anticipating a mixed response for the upcoming debutants, following the muted pop given by

despite the conservative valuations.

Vijay Singhania, Chairman, TradeSmart, said that Indian markets have recovered over the last couple of days, providing some relief to traders and investors. He expects the recovery in the secondary market to support the upcoming issues.

“With a poor listing and subsequent fall of LIC post listing, market participants were sceptical about the listing of other issues,” he added, dragging the high expectations lower.

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