Car trading vs Nuvoco Vistas IPOs: After the bids for four initial public offers (IPOs) closed yesterday, two more public issues – Car Trade and Nuvuco Vistas – will be open for subscription on August 9, 2021. These public issues will remain open for auction until August 11. 2021. While Car Trade promoters aim to increase ₹2,998.51 crore of this public issue, the promoters of Novoco Vistas aim to increase ₹5,000 crore of their initial offer. As we are only two days away from the opening of offers for these public issues, the gray market has also started to signal its mood regarding the Car Trade IPO and the Nuvoco IPO. Vistas.
Here we list the important details regarding the IPOs of Car Trade and Nuvoco Vistas:
– Gray market premium
Car Trade IPO GMP is today ₹450 – ₹25 compared to its Friday gray market premium. This means that Car Trade Tech shares are available on the gray market at a premium of over 25%. In other words, the gray market expects a listing gain of more than 25 percent from this IPO.
Nuvoco Vistas IPO GMP is today ₹40 – ₹2 compared to its Friday gray market premium. This means that the gray market’s expected listing gain from this IPO is around 7 percent.
– IPO price band
The management of Car Trade Tech set the price of the car trade IPO at ₹1585 to ₹1,618 per share. A bidder will have to apply in batches and a batch will consist of 9 shares of the company. A single bidder can apply for a minimum of one lot and a maximum of 13 lots.
The promoters of Nuvoco Vistas have a fixed price range of the public issue at ₹560 to ₹570. A bidder may request the IPO in batches and a IPO lot will consist of 26 shares of the company. A single bidder can apply for a minimum of one lot and a maximum of 13 lots.
– Investment limit
As mentioned above, only one tenderer can apply for a minimum lot and a maximum of 13 lots. This means that Car Trade’s IPO bidders are allowed to invest a minimum ₹14 562 ( ₹1618 x 9) and maximum ₹1,89,306 [( ₹1618 x 9) x 13].
– Expert opinion
Market watchers believe that one can underwrite both IPOs for reasonable quotation gains. They said the Car Trade IPO is very expensive while Nuvoco Vistas has the backing of the big brand Nirma.
Speaking on the auto trade IPO; Abhay Doshi, Founder of UnlistedArena.com, said: “The problem (of auto trade) seems expensive, but being a niche company and a frenzy for startup IPOs, it could accelerate in the short term due to first-mover advantage.
– Allocation and listing of shares
The two public issues are expected to finalize the allocation of shares on August 17, 2021. The two public issues are expected to be listed on the NSE and the BSE on August 23, 2021.
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