Vishal Nirmiti IPO vs Nityas Gems IPO: Which IPO Offers Better Valuation? Check Price Band, Size, GMP & More

Two mainboard IPOs are available for investors to consider; the Vishal Nirmiti IPO and Nityas Gems and Jewellery IPO open for subscription on September 30. Both public issues will remain open until October 5, with the IPO allotment expected on October 6 and listing scheduled for October 8.

Although the two IPOs share the same subscription and listing timeline, there are big differences in their issue size, business models, valuation, issue structure and grey market premium (GMP).

Vishal Nirmiti is the larger of the two IPOs, with an issue size of Rs. 178 crore, while Nityas Gems and Jewellery is raising around Rs. 108.35 crore. In terms of valuation, Vishal Nirmiti is available at a lower post-issue P/E compared with Nityas Gems.

Vishal Nirmiti IPO vs Nityas Gems IPO: Price Band and Minimum Investment

The Vishal Nirmiti IPO price band has been fixed at Rs. 208-Rs. 220 per share, while the Nityas Gems IPO price band is considerably lower at Rs. 70-Rs. 75 per share.

However, the lower share price of Nityas does not mean a lower minimum investment.

Vishal Nirmiti has a lot size of 68 shares, requiring a minimum investment of Rs. 14,960 at the upper price band.

Nityas Gems has a larger lot size of 200 shares, resulting in a minimum investment of Rs. 15,000 at Rs. 75 per share.

Issue Size: Vishal Nirmiti Vs Nityas Gems

In terms of issue size, Vishal Nirmiti is significantly larger. The company is looking to raise approximately Rs. 178 crore, comprising a Rs. 145 crore fresh issue and Rs. 33 crore offer for sale.

The fresh issue component has also been increased from the earlier proposed Rs. 125 crore to Rs. 145 crore.

In comparison, Nityas Gems and Jewellery is raising around Rs. 108.35 crore, according to the RHP figure. Importantly, the entire Nityas issue consists of a fresh issue, with no OFS component.

Valuation: Vishal Nirmiti vs Nityas Gems

Valuation is another major difference between the two IPOs. At the upper price band, Vishal Nirmiti's post-issue P/E is around 23.26x, while its pre-issue P/E is approximately 17.45x.

Nityas Gems, meanwhile, has a reported P/E of around 33.04x. Therefore, based on the stated IPO valuations, Nityas Gems is being offered at a higher earnings multiple than Vishal Nirmiti.

GMP: Vishal Nirmiti IPO vs Nityas Gems IPO

The current grey market data show a clear difference between the two upcoming IPOs. Nityas Gems & Jewellery IPO is commanding a GMP of Rs. 9, while Vishal Nirmiti IPO is trading at a GMP of Rs. 2, based on the data by Investorgain.

At the upper price band of Rs. 75, Nityas Gems' GMP of Rs. 9 implies an estimated listing price of Rs. 84 per share which mean a 12% premium over its issue price

In comparison, Vishal Nirmiti has an upper price band of Rs. 220. With a GMP of Rs. 2, the estimated listing price works out to Rs. 222 per share indicating a listing gain of around 0.91%.

Vishal Nirmiti IPO vs Nityas Gems IPO: Important Dates

Both IPOs will open on September 30th , and close on October 5th. The expected allotment date for both issues is October 6, while the shares are scheduled to list on October 8.