Happiest Minds & Route Mobile set tone for the next three IPOs

Route Mobile appears set for a strong listing on Monday as its grey market premium is around Rs 300 over its IPO price of Rs 350.

CAMS, a registrar and transfer agent, is being seen as a fintech play, supported by a buoyant stock market, improved retail participation and ample liquidity as key tailwinds.
Mumbai: The strong debut of Happiest Minds last week has paved the way for a similar listing for Route Mobile on Monday and is expected to push investors to bid aggressively for IPOs of CAMS, Chemcon Speciality Chemicals and Angel Broking this week, said market watchers. Happiest Minds debuted with 111 per cent listing gains — the biggest ever surge by a company on listing.

Route Mobile appears set for a strong listing on Monday as its grey market premium is around Rs 300 over its IPO price of Rs 350. “Current grey market premium of Route Mobile at Rs 300-Rs 310 suggests the dream run of new listings will continue which started with Happiest Minds,” said Aniruddha Sarkar, CIO, Quest Investment Advisors.

IPOs of Chemcon and CAMS will open Monday while that of Angel Broking will open on Tuesday. “There will be little less fancy around these three IPOs than Happiest Minds which was liked because of promoter background and pricing. These three IPOs could get oversubscribed, but the extent of oversubscription will vary,” said Deepak Jasani, head of research at HDFC Securities. ET spoke to market experts on what should investors do.


Angel Broking
The Rs 600-crore IPO of Angel Broking, priced at Rs 305-Rs 306, will open on Tuesday. Broking companies are in demand with these firms gaining retail client base at one of its fastest paces in recent years. Angel, being one of the largest retail broking houses, is one of the beneficiaries. “Valuation wise, Angel Broking is attractively priced compared to some listed peers. It is commanding a grey market premium of Rs 40-Rs 50 which leaves further room for valuation catch-up,” said Sarkar.

CAMS
CAMS, a registrar and transfer agent, is being seen as a fintech play, supported by a buoyant stock market, improved retail participation and ample liquidity as key tailwinds. “Anchor book of CAMS is extremely strong and that too should see a good listing,” said Sarkar. The grey market premium is currently at Rs 350. The price band of CAMS’ Rs 2,242-crore IPO is fixed at Rs 1,229-Rs 1,230. “CAMS is in a business with a strong moat and high entry barriers. It will command a premium valuation upon listing,” said Sarkar.
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Chemcon Speciality Chemicals
The grey market premium of Chemcon is Rs 230-Rs 235 over the IPO price. “The view on Chemcon is positive as specialised chemical stocks have benefited from Covid and risen 20-60 per cent in the past six months, due to import substitution and reduced sourcing from China. While the oilfield chemicals business is not doing well, pharma is more than compensating the decline supported by capacity expansion,” said Geetanjali Kedia, senior research analyst at SPTulsian.com.
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