Devyani International IPO: After the closure of the subscription last week, bidders are anxiously waiting for the Devyani International IPO allotment date, which is most likely today i.e. 11th August 2021. Devyani International IPO got subscribed 116.70 times, which is enough to understand the high expectations of the bidders from this public issue, said market observers. As per the market observers, the grey market is also looking bullish on this public issue as Devyani International IPO GMP today is ₹51, which is around 56 percent higher from its price band of ₹86 to ₹90.
Understanding the importance of Devyani International IPO
Devyani International IPO (DIIPL) had got the Sebi approval in October 2017. DIIPL got listed on BSE and NSE. At the time of its public issue, DIIPL raised ₹403 crores from the sale of 29.27 crore shares, valuing the company at ₹754 crores. The price band for the public issue was fixed at ₹86 to ₹90 per share. The IPO was open for subscription from 15th October to 23rd October 2017.
DIIPL has fixed a price band of ₹90 to ₹91 per equity share for its fresh issue. Recently, Devyani International IPO was subscribed 115.67 times by the investors, which is a good barometer for investor sentiment in the country’s capital market. With a good subscription, DIIPL is likely to witness a good listing day on Thursday 11th August 2021.
Why is this a good time to invest in Devyani International IPO?
According to industry experts, the last few trading sessions show that the bidders are not getting frustrated and they are looking for a good opportunity to invest in Devyani International IPO.
Several reasons for such investment are listed below: The large size of Devyani International IPO – The initial public offering of domestic business of DIP Cement, a subsidiary of DIP, is the largest since 2000. It will help to maintain the same size as compared to the previous IPO of DIP-HCB in 2007. According to companies’ filings, DIP-HCB achieved sales of ₹158.12 billion and gross profit of ₹18.97 billion in the fiscal year 2018. Similarly, the International operations, comprising its subsidiaries and joint ventures, are growing at the rate of 30 percent per year.
What will be the price band of Devyani International IPO?
Devyani International IPO will be issued and listed on BSE & NSE. The price band for the initial public offer (IPO) has been fixed at ₹86 to ₹90. The issue size is ₹709 crore. The company proposes to sell 33,175,500 equity shares of the face value of ₹10 each. Of this, as much as 24,246,000 shares are reserved for the anchor investors. The anchor investors can bid for a total of 74,450,000 shares which can be a combination of a primary share of face value ₹10 each, besides a separate share of ₹10 for every 15 shares of face value ₹10 in a multi-profile bidding-bid, as per the draft papers.
Do grey market believe in this public issue?
The grey market is bullish on this public issue with the prospective price of ₹51, which is around 56 percent higher than its price band of ₹86 to ₹90. The grey market indicates a positive sentiment with the other primary market issues like Ispat India and Apollo Hospitals which were also subscribed 100 times and 467 times, respectively, on the first day. If the Devyani International IPO also goes well, it will be good news for the investors. What are the latest updates on Devyani International IPO? Devyani International IPO is a pure offer for sale by the promoters and at this stage, only the promoters are selling their stake through the offer for sale (OFS) route.
As per the market observers, the grey market is also looking bullish on this public issue as Devyani International IPO GMP today is ₹51, which is around 56 percent higher from its price band of ₹86 to ₹90. However, it is advised that investors should conduct thorough due diligence before making an investment in this public issue. Devyani International IPO is one of the most anticipated IPOs this season and the domestic and international investors are showing a keen interest in this public issue as well.