Ami Organics Vs Vijaya Diagnostic IPOs: What GMP signals ahead of listing
The initial public offerings (IPOs) of specialty chemical manufacturer Ami Organics and healthcare chain Vijaya Diagnostic Centre opened on September 1 and the three-day issue closed on September 3. Ami Organics issue was subscribed 64.54 times on the closing day of subscription whereas Vijaya Diagnostic was booked 4.54 times.
Vijaya Diagnostic and Ami Organics shares are expected to list on Tuesday, September 14 on the leading stock exchanges BSE and NSE. The listing can be mixed for the two as Ami Organics shares have been available at a strong premium whereas Vijaya Diagnostic has slipped to discount since the past few days in the grey market.
As per market observers, Ami Organics grey market premium (GMP) remained strong at around ₹156 ahead of shares listing. Vijaya Diagnostic shares continued to available at a discount of around ₹12 in the grey market today.
“In case of the two IPOs, Market is expecting mixed listing. Ami Organics may debut with decent listing around 20-25% gains while Vijaya Diagnostics may disappoint investors on listing and possibility of flat to even discount listing cannot be ruled out. The same was reflected in the subscription figures of the two IPOs," said Abhay Doshi, Founder at UnlistedArena.com.
The price band of the three-day share sale of Ami Organics was fixed at ₹603-610 per share. The public issue comprised fresh issue of equity shares worth ₹300 crore and an offer for sale (OFS) of up to 6,059,600 shares by promoter and existing shareholders.
Ami Organics is one of the leading R&D driven manufacturers of specialty chemicals with varied end usage, focussed towards the development and manufacturing of pharma intermediates for regulated and generic APIs (active pharmaceutical ingredients) and NCE (new chemical entity) and key starting material for agrochemicals and fine chemicals.
Vijaya Diagnostic Centre offers pathology and radiology testing services through 80 diagnostic centres and reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh, as well as the National Capital Region and Kolkata. The ₹1,895 crore initial share sale was entirely an offer for sale of up to 3,56,88,064 equity shares. The price range for the offer was at ₹522-531 per share.