Indian primary market activity continues unabated as two mainboard IPO’s have been oversubscribed on their final day of bidding. Vishal Nirmiti’s Rs 178 crore issue has been booked 1.71 times so far, while Nityas Gems & Jewellery’s Rs 108 crore fresh issue has been oversubscribed by 2.25 times.
Both the segments saw steadfast participation from retail applicants, and the companies are expected to list on stock exchanges on October 8.
Here are all the details you should know about the Vishal Nirmiti and Nityas Gems IPO:
The jewellery manufacturer’s issue has been subscribed 2.25 times, receiving bids for more than 3.25 crore shares against its ask of 1.44 crore shares. The issue saw maximum traction in the retail investor category, which was booked 4.04 times.
Non-institional investors segment has been subscribed by 2.05 times, while the qualified institutional buyers category has been booked 1.06 times. The employees quota, which was offered at a discount of Rs 7 has been oversubscribed by 2.82 times.
Nityas Gems & Jewellery issued 1.45 crore fresh equity shares of face value Rs 5, to raise Rs 108.35 crore. Its share price band had been fixed at Rs 70 to Rs 75, and as per the latest update its shares are trading in the unlisted markets at a premium of Rs 1, suggesting a likely listing price of Rs 76, based on the upper end of the price band.
However, readers must know that GMP is not an official metric to determine the listing price and does not guarantee profit or losses.
“At the upper price band the company is valued at 19.4x FY26 P/E and 14.8x FY26 EV/EBITDA, implying a market capitalization of Rs 431.9 crore, making the valuation appear fully priced,” Anand Rathi Research Team said in a report. The brokerage assigned a ‘Subscribe for Long Term’ Rating to the issue.
The construction company’s book-build issue saw active investor participation as by the end of bidding window the Rs 178 crore offer was subscribed 1.71 times, receiving bids for more than 1.44 crore shares against its reserved portion of 84.71 lakh shares.
The NII category was booked 1.81 times, while the retail investor segment was subscribed 1.67 times. The QIBs portion was subscribed by 1.27 times. Its share price band was fixed at Rs 208 to Rs 220.
As per various trackers, the stock of Vishal Nirmiti is currently trading at a GMP of Rs 2, suggesting a likely listing price of Rs 222. The issue comprised a fresh component of Rs 145 crore and an offer for sale portion of Rs 33 crore.
Giving the IPO a ‘Subscribe for Long Term’ rating, the Anand Rathi Research Team, in a report said, “At the upper price band, the company is valued at 23.2x FY26 P/E and 13.1x FY26 EV/EBITDA, implying a post-issue market capitalisation of approximately Rs 580.6 crore.”
It added that, given the company’s established position in railway infrastructure manufacturing, strong execution capabilities, improving profitability and visible growth opportunities from India’s infrastructure capex cycle, the Vishal Nirmiti IPO appears to be fully priced.
Both the IPO’s opened for public bidding on September 30 and completed their subscription process by October 5. Their share allotment is expected to wrap up by October 6, and bidder are expected to receive the shares in their demat account by October 7.
The refund process is also expected to be completed by October 7, and Nitya Gems & Jewellery and Vishal Nirmiti are expected to list on the BSE and NSE on October 8.