2 IPOs Open Tomorrow: BLS Polymers vs SFC Environmental Technologies; Which Has Higher GMP?

Two mainboard IPOs are going to hit the market on October 27, and the grey market is clearly favouring one of them. SFC Environmental Technologies and BLS Polymers both open for subscription on Tuesday and close on Thursday, October 29. For both IPOs, allotment is expected on October 30 and listing on November 3.

SFC Environmental Technologies IPO vs BLS Polymers IPO: Issue details

SFC Environmental Technologies has set its price band at Rs. 313-330. The issue size is Rs. 667.53 crore, with a lot size of 45 shares and a minimum investment of Rs. 14,850. JM Financial is the lead manager.

On the other hand BLS Polymers' price band is Rs. 142-150, and its lot size is 100 shares, so the minimum investment is Rs. 15,000. The Rs. 255 crore issue is entirely fresh capital, with no offer for sale. The money will fund expansion of the company's Goa manufacturing facility and working capital needs.

GMP Comparison: SFC Environmental Technologies IPO vs BLS Polymers IPO

As of October 26, 2:37 PM, BLS Polymers' last recorded GMP was Rs. 37. Against its upper price band of Rs. 150, that puts the estimated listing price at Rs. 187, an expected listing gain of 24.67%. SFC Environmental Technologies' GMP was Rs. 28 at the same time. On an upper price band of Rs. 330, the estimated listing price comes to Rs.358, a gain of 8.48%. In other words, BLS Polymers' implied premium is nearly three times that of SFC.

Both premiums have eased a little from the weekend. SFC's GMP had been around Rs. 30 to 32 over the weekend after dipping to Rs. 21 earlier in the week, while BLS Polymers' GMP had been as high as Rs. 38. BLS has held a premium of roughly 16-25% since mid-October, whereas SFC's has swung between about 6% and 10%.