Two mainboard Initial Public Offerings (IPOs) are set to open simultaneously, presenting investors with a unique opportunity. This article delves into the details of these two IPOs, assessing their Grey Market Premiums (GMP), potential listing gains, and offering guidance on which one might be a priority for application. Both IPOs require an investment of approximately ₹15,000 for a single lot.
Introducing the IPOs: Highway Infrastructure & Knowledge Realty Trust REIT
The two mainboard IPOs opening soon are the Highway Infrastructure IPO and the Knowledge Realty Trust REIT IPO. The Highway Infrastructure IPO will begin its application period, and investors will have the first day to apply. The Knowledge Realty Trust REIT IPO, on the other hand, typically sees significant participation from large institutional investors.
Knowledge Realty Trust REIT IPO: Key Details & Strategy
The Knowledge Realty Trust REIT IPO has a substantial issue size of ₹4800 crores. Unlike traditional IPOs, there is no specific retail reservation in this offering. Instead, 25% of the issue is reserved for HNI (High Net-worth Individual) investors, and retailers can apply under this HNI category. The minimum application amount for one lot in this IPO is ₹15,000. This IPO includes both Big HNI and Small HNI categories. From a strategic perspective, this IPO is recommended for observation or study, as REITs are often known to provide returns to investors primarily through dividends. As of now, there is no Grey Market Premium activity seen for the Knowledge Realty Trust REIT IPO.
Highway Infrastructure IPO: Insights & Application Approach
The Highway Infrastructure IPO features a comparatively smaller issue size of ₹130 crores. For retail investors, 35-40% of the shares are reserved. However, due to its small issue size, the chances of allotment might be slightly lower. To enhance the likelihood of allotment, investors are advised to monitor the subscription figures on the first and second days, along with the momentum in the Grey Market Premium, before making an application decision. This IPO has 30% of shares reserved for Qualified Institutional Buyers (QIBs), 30% for HNIs, and 40% for retail investors. The minimum application amount for this IPO is also ₹15,000.
Grey Market Premium (GMP) Update
While the Knowledge Realty Trust REIT IPO currently shows no activity in its Grey Market Premium, the Highway Infrastructure IPO is trading at a robust GMP of approximately ₹39-₹40. This translates to a premium of about 55-57%. Based on the current Grey Market Premium, the Highway Infrastructure IPO is expected to offer listing gains of around ₹8400. If a previously listed IPO performs well as expected, it could further boost the GMP and subscription rates for this IPO.
Application Strategy & Priority for Both IPOs
Considering both IPOs, the Highway Infrastructure IPO is suggested as the first priority for application. Its Grey Market Premium indicates a promising listing gain potential. The Knowledge Realty Trust REIT IPO, while significant, is recommended for observation from a study point of view. For the Highway Infrastructure IPO, it is crucial to assess the response from QIB and HNI categories on the first and second days of the bidding process before deciding to apply. A strong subscription rate from these segments will be a key factor in planning the application.
Important Dates: Application and Allotment
Both IPOs are scheduled to open on the same day and have a common closing date of July 7th. The allotment for the Knowledge Realty Trust REIT IPO is expected around August 7th, with confirmation of allotment status available on August 8th. For the Highway Infrastructure IPO, the allotment is anticipated around August 12th.
Conclusion: Making an Informed Decision
As these two mainboard IPOs open, investors should closely monitor the subscription numbers, especially for the Highway Infrastructure IPO, and keep an eye on Grey Market Premium trends. Staying informed about these updates will be crucial for making an informed application decision.
