The primary market in India is poised for a significant week with the simultaneous opening of three mainboard initial public offerings (IPOs) on Wednesday, December 3. Investors can bid for shares of Meesho, Vidya Wires, and Aequs until the subscription window closes on Friday, December 5.
IPO Details and Fundraising Breakdown
The most prominent of the three, the Meesho IPO, comprises a fresh issue of 38.29 crore shares aiming to raise ₹4,250 crores, coupled with an offer for sale (OFS) of 10.55 crore shares worth ₹1,171.20 crores.
The Vidya Wires IPO is a combination of a fresh issue of 5.27 crore shares aggregating to ₹274 crores and an OFS of 0.50 crore shares amounting to ₹26.01 crores.
Similarly, the Aequs IPO includes a fresh issue of 5.40 crore shares to raise ₹670 crores and an offer for sale of 2.03 crore shares valued at ₹251.81 crores.
Grey Market Premium (GMP) Signals Ahead of Bidding
Ahead of the public subscription, the grey market sentiment shows a clear divergence among the three offerings. According to data from Investorgain, Meesho's IPO shares are commanding a premium of ₹45, suggesting a potential listing price of around ₹156.
Aequs IPO is also witnessing strong grey market buzz with a GMP of ₹44.5, pointing to a probable listing price near ₹168.5.
In contrast, sentiment for the Vidya Wires IPO appears weaker, with its shares trading at a premium of just ₹5, indicating an expected listing price of approximately ₹57.
Expert Analysis: Listing Gains vs. Long-Term Investment
Analysts are advising investors to align their bids with their financial goals. Prasenjit Paul, Equity Research Analyst at Paul Asset, suggests that Meesho is the preferred choice for investors seeking listing gains, given its position as a high-growth e-commerce player targeting India's Tier 2 and 3 cities. However, he cautions about monitoring the sustainability of its recent profitability and its high valuation.
Regarding Aequs, Paul notes its promising presence in aerospace and consumer manufacturing, riding the "Made in India" wave, but highlights that it is currently a loss-making entity, making it suitable for long-term investors with a higher risk appetite.
He views Vidya Wires, a manufacturer of copper and aluminum wires, as operating in a commoditized segment that may not generate high listing gains compared to the other two IPOs.
Prashanth Tapse, Research Analyst at Mehta Equities Ltd, offers a complementary perspective. He states that growth-oriented investors might find Meesho attractive for its scale and potential in under-penetrated markets, while value-driven investors with a conservative risk profile may lean towards Aequs for its niche exposure to aerospace and export-led manufacturing themes.
Tapse emphasizes that Aequs offers a compelling long-term proposition for those looking to invest in India's "Make in India, Make for the World" manufacturing story within high-barrier sectors.
Disclaimer: This article is for informational purposes only. The views and recommendations are those of individual analysts. Investors are advised to consult certified experts before making any investment decisions.
