The IPO of Shyam Metallics and Energy is opening for subscription on June 14. Even before this, its shares are trading at Rs 436, up 43 per cent in the gray market. Shyam Metaliks is bringing an IPO of Rs 909 crore.
The issue price of Shyam Metaliks share is Rs 306 but in gray market its shares are trading up by Rs 140-145 to Rs 436 to 440. A day after the bidding by anchor investors, that is, on Thursday, there was a huge jump in the prices of its shares in the gray market. Integrated metal producer Shyam Metaliks has fixed the price band of its shares from Rs 303 to Rs 306 at Rs 10 face value.
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Experts opinion, Shyam Metaliks shares will get good responseRajesh Singla, founder and CEO of pre-IPO consultancy firm Planify India, told the media that the valuation of the company is correct. The way the demand for IPO is visible, it is expected to get oversubscription of its IPO.
Abhay Doshi, founder of UnlistedArena.com, a company that trades in pre-IPO and unlisted shares, told Financial Express Online that Shyam Metaliks’ IPO is coming at a time when the metal sector is booming. Momentum is completely in favor of metal stocks.
He added that the company’s expansion plans are huge and it will be interesting to see how much it strengthens it. Its price on the upper band is Rs 306. Its PE based on the annual EPS for the financial year 2020-21 is 12 times, which is quite correct. With this, investors can get an opportunity to earn in it.
35% of IPO reserved for retail investors
50 percent of the net offer of Shyam Metaliks IPO is reserved for QIBs (Qualified Institutional Buyers). At the same time, 35 percent is reserved for retail investors. The remaining 15 percent is reserved for non-institutional investors.
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(Stock recommendations in the story are based on information provided by research analysts and brokerage firms. News18 Hindi takes no responsibility for any investment advice. Please consult your advisor before investing.)