Prasol Chemicals Vs Glass Wall Systems IPO: Which IPO Has Better GMP, Price Band & Listing Gain Potential?

Two mainboard IPOs are going to hit the market on the same day and investors looking for options have a lot to chew on before September 8.

Prasol Chemicals and Glass Wall Systems (India) will both open for subscription on September 8, close on September 10, and list on the NSE and BSE on September 16, giving investors a rare direct comparison window between a specialty chemicals manufacturer and a facade solutions provider.

Prasol Chemicals IPO

Prasol Chemicals is looking to raise Rs. 500 crore through its book-build issue, comprising a fresh issue of 11.83 lakh shares worth Rs. 80 crore and an offer for sale of 62.13 lakh shares worth Rs. 420 crore.

The price band has been fixed at Rs. 643 to Rs. 676 per share, with a lot size of 22 shares, translating to a minimum retail investment of Rs. 14,872 at the upper band. Founded in 1992, the company is a specialty chemical manufacturer.

Glass Wall Systems IPO

Glass Wall Systems, on the other hand, is raising a comparatively smaller Rs. 427.89 crore, split between a fresh issue of 32.97 lakh shares worth Rs. 60 crore and an offer for sale of 2.02 crore shares worth Rs.367.89 crore. Its price band sits at Rs. 172 to Rs. 182 per share, with a lot size of 82 shares requiring a minimum retail outlay of Rs. 14,924.

The company, founded in 2010, is a facade and fenestration solutions provider with a presence in India, the US and Australia.
IIFL Capital Services is the book running lead manager for the issue, while MUFG Intime India is the registrar.

Offer-For-Sale Component In Both Issues

Both IPOs are heavily ralied toward the OFS route, with existing shareholders accounting for 84% of Prasol's issue and 86% of Glass Wall Systems' issue.

Glass Wall Systems IPO GMP Vs Glass Wall Systems GMP

On the grey market front, sentiment currently favours Glass Wall Systems by a wide margin. As of September 7, Prasol Chemicals' GMP stood at Rs. 90, implying an estimated listing price of Rs. 766 and an expected gain of 13.31% over its upper price band.

Glass Wall Systems, meanwhile, was commanding a GMP of Rs. 46, pointing to an estimated listing price of Rs. 228 and a sharper expected gain of 25.27%.