Burger King IPO grey market premium: Burger King listing: Can it rewrite Happiest Minds, Chemcon successes?

NEW DELHI: IPOs receiving over 100 times subscription have generally seen a stellar debut on Dalal Street and Burger King could be no exception if grey market trends are to be believed.

Burger King was the fourth mainboard IPO this year, which saw over 100 per cent subscription levels. The other three being: Mazagon Dock Shipbuilders (157.41 times), Happiest Minds (156.65 times) and Chemcon Speciality (149.3 times).

While Mazagaon got listed on October 12 at a near 50 per cent premium to its IPO price, Chemcon Speciality, which made its market debut on October 1, saw a 115 per cent surge at its listing.

Similarly, shares of Happiest Minds Technologies witnessed a stellar debut in September and got listed at Rs 351, a 111 per cent premium over its issue price of Rs 166. The IPO, which was sold from September 7 to September 9, was subscribed 151 times.

As per Dinesh Gupta of Unlisted Zone, shares of Burger King India were enjoying a grey market premium of around Rs 43.75, with a variation of around 25 paise . Another dealer said the premium was in the range of Rs 43-45. This premium is 75 per cent above the upper limit of the IPO price band of Rs 60.

In the past, nearly two dozen issues with over 100 times subscription levels logged an average of 70 per cent listing gains at secondary market debut, data showed.

Salasar Techno Engineering, whose Rs 36 crore IPO had been subscribed 273.10 times in July 2017, saw 139.95 per cent listing gains. The scrip debuted at Rs 259.15, against the issue price of Rs 108. Apollo Micro Systems, whose Rs 156 crore issue had seen 248.5 times subscription in January 2018, saw a listing pop of 73.81 per cent over the issue price of Rs 275. The scrip got listed at Rs 478.

Three issues of 2017 — Astron Paper & Board Mill (issue size of Rs 70 crore), Capacit’e Infraprojects (issue size of Rs 400 crore), and Central Depository Services (issue size of Rs 524 crore) — saw listing pops of 128 per cent, 59.6 per cent and 67.78 per cent, respectively. All these issues had been subscribed 170-242 times.

Ujjivan Small Finance Bank (2019), Amber Enterprises India (2018), Religare Enterprises (2007) and Quess Corp (2016) saw listing gains of 56.76 per cent, 37.36 per cent, 75 per cent and 57.41 per cent, respectively. These issues were subscribed 144-166 times.

IRCTC listing delivered investors 101 per cent listing pop. The issue was subscribed 111.9 times. In 2017, Avenue Supermarts had also delivered 102 per cent listing gain. This issue was subscribed 104.5 times.

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