The Indian primary market is buzzing with excitement as three companies, Vikram Solar, Gem Aromatics, and Shreeji Shipping Global, are closing their Initial Public Offerings (IPOs). Each company comes from a different industry, but all have drawn strong investor interest in recent days.
While subscription levels reflect enthusiasm, analysts remain divided on valuations and long-term growth prospects.
Vikram Solar IPO: High Subscription but Valuation Concerns
Vikram Solar, one of India’s leading solar photovoltaic (PV) module manufacturers, is in the final day of its ₹2,079 crore IPO, which opened on August 19. The issue includes both a fresh share sale and an Offer for Sale (OFS) by promoters.
Investor Response: As of the latest data, the IPO has been subscribed 4.73 times overall. Non-Institutional Investors (NIIs) have led the charge, oversubscribing their portion 13.51 times, while retail investors subscribed 3.62 times. The weaker spot has been Qualified Institutional Buyers (QIBs), who subscribed only 0.12 times, signaling caution.
Valuation Concerns: The IPO is priced in the band of ₹315–₹332 per share. At the upper end, Vikram Solar is valued at a Price-to-Earnings (P/E) ratio of 72x, much higher than peers like Waaree Energies (46x) and Premier Energies (47x).
Brokerage firms have given mixed recommendations. Some encourage long-term investors to subscribe, citing a robust order book, capacity expansion, and improving margins. Others warn that the valuation leaves little room for error, making it suitable mainly for high-risk investors. The funds raised will go toward new manufacturing facilities and general corporate needs.
Gem Aromatics IPO: Moderate but Stable Response
Gem Aromatics, a specialty ingredients maker producing essential oils and aroma chemicals, is also wrapping up its IPO today. The company plans to raise about ₹451.3 crore through a fresh issue and OFS.
Subscription Details: The IPO has seen a moderate overall subscription of 1.09 times by the end of Day 1. Retail investors subscribed 1.08 times, while NIIs showed weaker participation at 89%. QIBs subscribed 1.09 times their quota. The price band is fixed at ₹309–₹325 per share.
Company Performance: With over two decades in the industry, Gem Aromatics has built a steady client base and expanded operations. Its revenue reached ₹504 crore in FY25, showing consistent financial growth. The company plans to use IPO proceeds to repay debt and for general corporate purposes, which analysts see as a sign of financial strengthening.
Though the response has been less aggressive compared to Vikram Solar or Shreeji Shipping, Gem Aromatics still attracts interest because of its stable business model and growth potential in the specialty chemicals sector.
Shreeji Shipping IPO: Strong Demand from Retail and NIIs
Shreeji Shipping Global Ltd., a dry bulk cargo logistics provider, is also in the spotlight with its ₹411 crore IPO, a pure fresh issue with no OFS component.
Subscription Trends: The IPO has seen impressive traction, subscribed 6.59 times overall by Day 2. NIIs showed overwhelming enthusiasm, oversubscribing their portion 11 times. Retail investors also responded strongly, subscribing 7 times their quota, while QIBs recorded 2.4 times subscription.
Business Outlook: Priced in the range of ₹240–₹252 per share, the IPO aims to fund the purchase of dry bulk carriers and reduce debt. Shreeji Shipping enjoys a strong presence on India’s west coast, an area with growing port cargo activity. Despite a decline in revenue recently, the company’s profitability improved by 13.4% in FY25, showing resilience in operations.
This robust subscription response highlights investor confidence in the shipping and logistics sector, which is expected to benefit from India’s rising trade volumes.
Grey Market Premium (GMP): Positive Signs Across All IPOs
The grey market premium (GMP), an unofficial indicator of listing sentiment suggests positive expectations for all three IPOs.
- Vikram Solar: GMP has dipped slightly from earlier highs but remains positive, hinting at possible listing gains.
- Gem Aromatics: Despite its modest subscription, it shows a steady premium in the grey market, indicating investor confidence in long-term stability.
- Shreeji Shipping: Maintains a healthy GMP, aligning with the strong demand seen from retail and NIIs.
Overall, these IPOs reflect a diverse investor appetite across renewable energy, specialty chemicals, and shipping. While high valuations, especially in Vikram Solar, raise caution, the strong demand and grey market signals suggest that listing day could bring excitement for investors across all three companies.
F.A.Q.
– What is the subscription status of Vikram Solar IPO?
As of the latest data, the Vikram Solar IPO is subscribed 4.73 times overall, with strong demand from NIIs (13.51 times) and retail investors (3.62 times).
– Why are analysts cautious about Vikram Solar IPO despite strong demand?
Analysts are concerned about its high valuation. At the upper price band, it trades at a P/E ratio of over 72x, much higher than its peers, making it suitable mainly for high-risk investors.
– How has Gem Aromatics IPO performed?
Gem Aromatics IPO received a moderate response with an overall subscription of 1.09 times. Retail and QIB investors participated actively, while NIIs showed lower interest.
– What is special about Shreeji Shipping IPO?
Shreeji Shipping has attracted strong investor demand, with an overall subscription of 6.59 times. NIIs subscribed 11 times, and retail investors 7 times, showing confidence in the company’s logistics growth story.
– What do grey market premiums (GMPs) suggest about these IPOs?
All three IPOs Vikram Solar, Gem Aromatics, and Shreeji Shipping are showing positive GMPs, indicating expectations of healthy listing gains.
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