A stream of IPOs lined up, yet grey market premium barely ripples

Five listings seek ₹15,601 crore, but only one is making any serious waves

The primary market is bracing for its busiest week in six months, with five initial public offerings (IPOs) lined up to raise ₹15,601 crore.

 

The week ended December 13, 2024, saw an even larger wave of offerings, led by fashion retailer Vishal Mega Mart’s ₹8,000 crore issue. This time, non-banking finance firm HDB Financial Services takes the spotlight with a ₹12,500 crore offering, including a ₹10,000 crore share sale by parent HDFC Bank.

 

Other headline offerings include real estate developer Kalpataru (₹1,590 crore) and specialty gas maker Ellenbarrie Industrial Gases (₹852 crore). Yet grey market premiums (GMPs) across the five issues remain subdued, hovering between 1 per cent and 18 per cent.

 

“HDB’s offer is priced at a steep discount to its rate in the unlisted market, which explains its subdued GMP. Since interest is concentrated largely on HDB, the GMPs of other IPOs aren’t drawing much attention,” said Amabreesh Baliga, an independent equity analyst. 

 

The crowded IPO pipeline, combined with robust block deal activity, may draw some liquidity from the secondary market, though the overall effect is expected to be limited.

 

“Even an outflow of ₹15,000–20,000 crore won’t move the needle much. We’ve seen hefty block deals in recent months, and they’ve barely impacted overall market gains,” added Baliga.