Street Signs: VMM, Sai Life in focus; IPO market flickers back to life

Lock-up to let-go? VMM, SLS face the great unclasp

 

Shares of fashion retailer Vishal Mega Mart (VMM) may draw attention this week as the lock-up period for over half its equity — valued at around $4 billion — ends on Tuesday. The company, backed by Partners Group and Kedaara Capital, listed in December through a nearly $1 billion initial public offering (IPO). VMM’s shares have since climbed nearly 60 per cent above the issue price. Early backers are reportedly sitting on 10x returns, sparking speculation from investment bankers about potential selloffs in the short term. Meanwhile, Sai Life Sciences (SLS) will see its IPO lock-up expire on June 30. TPG Asia, which holds about 25 per cent of SLS, is sitting on close to 6x gains, raising similar expectations.

 

The 93% problem: Sebi runs the numbers

 

The Securities and Exchange Board of India (Sebi) is expected to release a white paper by July assessing the fallout from recent efforts to rein in speculation in the derivatives market. Last year, Sebi rolled out a series of steps aimed at aligning the derivatives segment more closely with the cash market. The upcoming white paper will examine how these changes have played out for traders in the futures and options (F&O) space. Sebi may also publish an updated report with fresh findings on trader profits and losses, building on its earlier finding that 93 per cent of F&O traders ended up with losses. 

 

IPO street hums, but wheels don’t turn

 

The initial public offering (IPO) market is flickering back to life, with more than half a dozen launches in the past month. But while investor interest has returned, post-listing performances have been underwhelming. That pattern may hold for two upcoming issues — Oswal Pumps (₹1,387 crore) and ArisInfra Solutions (₹500 crore) — set to close this week. Based on grey market chatter, Oswal Pumps may debut at a 9 per cent premium, while ArisInfra could see an 11 per cent jump. Investment bankers say a strong debut for these two could help set the tone for likely large IPOs from HDB Financial Services and National Securities Depository next month.