After getting a stellar subscription, investors will have their eyes on making probable listing gains from UTI, Mazagon Dock that will debut on bourses on Monday, October 12, 2020.
Given the fizzling out in share premium for these IPOs in the grey market, traders in the unlisted shares market do not expect Mazagon IPO to make a bumper listing of over 100% and may list at Rs. 250, while the listing for UTI AMC, it is expected to be in the range of Rs. 515-520. The issue price for UTI AMC has been fixed at Rs. 552 to Rs. 554.
So the issue of UTI AMC which gathered a weak response will likely list at a dicount or list just at par in comparison to the issue price.
What Should Investors in UTI AMC and Mazagon Dock IPO do?
For short term trades, investors should book profits and for long term holdings, to reduce risk investors should book 40 percent profit if one gets over 40% premium as against the issue price, advised head of Research of Bonanza Portfolio.
Mazagon Dock IPO garnered the most interest
Talking specifically on Mazagon Dock this has garnered the maximum investor interest among all PSUs listed thus far. Now even as the primary market which saw a lot of excitement in the month of September with the highest listings, is sure fizzling out and after the allotment process of IPO has been complete, Mazagon Dock IPO is commanding a premium of just Rs. 106 as against Rs. 115 which it commanded earlier. The issue price for the stock has been fixed at Rs. 145. And for UTI AMC IPO, the grey market (i.e. the market for unlisted shares) it is said to trade at a steep discount of Rs. 35 to the issue price.
This is largely as the market turned volatile and now has been showing strength for the last 7 days, with Sensex topping levels of 40000 and Nifty above 11900 points.