This article discusses three significant mainboard Initial Public Offerings (IPOs) – Bluestone Jewellery IPO, Alltime Plastic IPO, and JSW Cement IPO – which offer an opportunity to apply starting Monday. We will delve into a detailed comparison of these IPOs, evaluating their financial health, valuation, Grey Market Premium (GMP), potential for listing gains, and long-term investment prospects, all to help determine which might be the most attractive. For daily IPO updates and Grey Market Premium insights, remember to subscribe and join the Telegram group linked in the comments.
Upcoming IPOs for Monday Application
The three mainboard IPOs set to open for application on Monday are:
- Bluestone Jewellery IPO
- Alltime Plastic IPO
- JSW Cement IPO
Financial Health Assessment
When assessing the financial health of these companies, a clear ranking emerges:
- Alltime Plastic IPO: This company demonstrates the strongest financial health, having consistently reported profits for three consecutive years.
- JSW Cement IPO: Ranks second in terms of financial health, showing good financial performance.
- Bluestone Jewellery IPO: Appears in the third position due to having operated at a loss for three consecutive years.
Valuation Metrics Overview
An analysis of the valuation metrics provides further insight:
- The valuation matrix for Alltime Plastic IPO and JSW Cement IPO cannot be discussed at this time.
- For Bluestone Jewellery IPO, the company’s valuation is considered somewhat reasonable. However, it is advisable to adopt a “wait and watch” approach, especially after observing the subscription response on the first two days of the IPO.
Current Grey Market Premium (GMP) Status
A general trend of falling Grey Market Premiums is observed across the board. This decline is attributed to market fears related to US-India tariffs and the upcoming Russia-Ukraine summit on August 15th, which could significantly impact Indian market sentiment.
Here’s a look at the individual GMPs:
- Bluestone Jewellery IPO: Its Grey Market Premium is trading around 13-16%, with some reporting it closer to 1-3%.
- JSW Cement IPO: This IPO is trading at a Grey Market Premium of 4-6%. The chances of allotment for this IPO appear slightly lower.
- Alltime Plastic IPO: This IPO currently has the highest Grey Market Premium in absolute terms, approximately ₹20. However, its percentage premium has decreased from 10% to around 8%.
Based on these Grey Market Premium figures, the ranking is as follows:
- Alltime Plastic IPO
- JSW Cement IPO
- Bluestone Jewellery IPO
It’s important to note that for safe application in a mainboard IPO, the Grey Market Premium typically needs to be above 20%. None of these three IPOs currently meet this safety threshold, suggesting a cautious approach for safe players.
Listing Gain Potential
When considering the potential for listing gains, the IPOs are prioritized as follows:
- Alltime Plastic IPO: Considered the first priority for potential listing gains.
- JSW Cement IPO: Ranks as the second priority for listing gains.
- Bluestone Jewellery IPO: Holds the third priority for listing gains.
Long-Term Investment Perspective
For those looking at long-term investment opportunities, the IPOs are ranked differently:
- JSW Cement IPO: This IPO is considered the best for long-term investment due to its association with the reputable JSW Group.
- Bluestone Jewellery IPO: Ranks second for long-term potential. Its future growth largely depends on potential tariff cuts in the jewelry sector. Without such cuts, the current market declines in the sector may persist.
- Alltime Plastic IPO: This IPO is viewed more as suitable for a momentum play lasting six months to a year, rather than a true long-term investment.
Key Market Factors Influencing IPOs
Current market sentiment and the performance of upcoming IPOs are heavily influenced by global events:
- US-India Tariffs: Ongoing discussions and developments regarding tariffs between the US and India are causing market apprehension.
- Russia-Ukraine Summit (August 15th): The outcome of this crucial summit on August 15th is highly anticipated. A positive outcome could lead to a significant positive movement in the Indian market, while a negative outcome might trigger a downturn.
Speaker’s Personal Application Strategy
Based on the analysis, the speaker outlines a personal application strategy:
- The speaker will closely monitor the Qualified Institutional Buyers (QIB) and High Net Worth Individuals (HNI) response for Alltime Plastic IPO and JSW Cement IPO between 12 PM and 2 PM, with an update expected via video around 1 PM.
- If the QIB response for JSW Cement IPO is strong, it will be considered for playing the momentum that might follow its listing, even if immediate listing gains are not substantial.
- For the sole purpose of achieving listing gains, the speaker would focus on Alltime Plastic IPO.
- Bluestone Jewellery IPO is not considered a first priority for listing gains.
- Overall, for a combination of listing gain and momentum, JSW Cement IPO is the first priority, followed by Alltime Plastic IPO. The decision to apply for Bluestone Jewellery IPO will depend on its subscription numbers during the first two days.
Conclusion
Your individual opinion and strategy for these three IPOs are valuable. Feel free to share your plans in the comments.
