Street Signs: T+3 for IPOs is optional, grey market premium at 25% & more

6...3...now voluntary:T+3 for IPOs is optional

Starting this month, the trade date plus three (T+3) timeline for initial public offerings has become voluntary. As a steady stream of issues hits the market, it remains to be seen which company will be the first to experiment with a shorter timeline. Market players have suggested that it will be easier for issues closing later in the week to opt for the T+3 timeline, as it will provide them with two additional non-working days to complete the listing formalities. Currently, the IPO listing timeline is T+6, indicating that an IPO issue gets listed six working days after its close.

Hotel stocks get the red carpet welcome

Hotel stocks are expected to rise due to a robust demand outlook, thanks to significant events happening in the country. Analysts have noted that the period from July-September 2023 is seasonally the weakest. However, as we move into the October-March 2024 period, the demand scenario looks promising. This is attributed to big-ticket events such as the Group of Twenty Summit, ICC Men’s Cricket World Cup, wedding season, and international tourist arrivals recovering to pre-pandemic levels. “Our channel checks for forward hotel room rates for October-November 2023 compared to the October-November 2022 period (previous year) indicate that hotels continue to follow a strategy of keeping rates at least 10 per cent higher than the previous year’s levels,” observes a note by ICICI Securities. Indian Hotels Company, Lemon Tree Hotels, and Chalet Hotels are likely to be in focus.

A lifeline for Jupiter: Grey market premium at 25%

Shares of Jupiter Life Line Hospitals, a multi-speciality health care provider, are trading at a premium of approximately 25 per cent in the grey market. The Mumbai-based hospital chain is set to launch its Rs 869 crore initial public offering (IPO) this Wednesday, with a price band for the issue of Rs 695-735 per share. At the top end, Jupiter’s market capitalisation is estimated to be Rs 4,819 crore. The company currently operates three hospitals with a total bed capacity of nearly 1,200. Additionally, Jupiter is in the process of establishing a fourth multi-specialty hospital in Dombivli, located within the Mumbai Metropolitan Area. The IPO will involve the issuance of new shares worth Rs 542 crore, which will be used to pare the company’s debt.