NEW DELHI: Shares of three companies that recently launched their initial public offering (IPO) will be listed for secondary trading during the week. Given market conditions and the gray market premium (GMP), a big bang in listing gains should not be expected.

The first list will be Ethos Monday, which is a luxury watch retailer. It will be followed by eMudhra a few days later, which is a certificate authority. Aether Industries, a specialty chemicals player, will debut on Friday.

GMP ethos

Ethos boasts the largest portfolio of premium and luxury watches in India and retails to 50 premium and luxury watch brands like Omega, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Bvlgari, H. Moser & Cie, Rado, Longines, Baume & Mercier, Oris SA, Corum, CarlF. Bucherer, Tissot, Weil, Louis Moinet and Balmain.

However, Dalal Street might not give it luxury treatment on Monday given its lofty valuations. Unlisted or gray market dealers said Ethos shares were trading at a premium of Rs 20, which based on the IPO price of Rs 878 reflects negligible listing gains.

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“The company does not have a listed peer, but the requested valuation is too rich despite the good outlook and the current market volatility is not conducive to primary issues with such rich valuations,” said Aayush Agrawal, senior analyst, . “We expect a lukewarm listing due to high valuations, but any upside surprises cannot be ruled out amid improving market sentiment.”

eMudhra GMP

eMudhra is engaged in providing digital trust services and enterprise solutions to individuals and organizations operating in various sectors. The company and its shareholders raised Rs 413 crore in the primary markets.

The company sold its shares in the range of Rs 243-256 apiece.

Dealers in the unlisted market said it was difficult to gauge the issue’s possible listing gains because there was virtually no trading over the counter. However, considering the market situation and the past trend, a low quotation is expected.

Aether Industries GMP

Aether Industries is a manufacturer of specialty chemicals. The company is the sole manufacturer of certain chemicals in India, such as 4-(2-Methoxyethyl)phenol (4MEP), 3-Methoxy-2-methylbenzoyl chloride (MMBC), Thiophene-2-ethanol (T2E ), Ortho Tolyl Benzo Nitrile (OTBN), N-Octyl-D-Glucamine, Delta-Valerolactone and Alcohol Bifenthrin.

Analysts were fairly optimistic about its future prospects, but the issue struggled to catch the attention of retail investors during the bidding process. However, thanks to a belated increase in demand, especially from institutional investors, the problem was finally resolved.

Dinesh Gupta of Unlisted Zone said Aether Industries was trading at a GMP of Rs 29-31 in unofficial markets. At the IPO price of Rs 642, this reflects a premium of around 5%, which is not much.

Much will depend on market conditions through Friday to see if the issue is able to maintain the premium or raise it further.