Behari Lal and Shiprocket list at premium

Two new listings today; one had a fantabulous one as was expected and the other one too got listed at a premium but more muted compared to the first. But the bottomline – despite the market being in red, two debutantes made am entry at a premium.

First Behari Lal. The IPO had met with an overwhelming response and the listing reflected that. As against the IPO price of Rs.285, it got listed on the BSE at 458, rose to Rs.528.50 and is now trading at Rs.505 levels.

The response – HNIs and QIBs were literally neck-to-neck in their response with HNIs portion getting subscribed 165.32x, QIBs at 165.33x and Retail at 53.27x, with over subscription at 108.44x.

Behari Lal Engineering, named after founding family member, is a Delhi-based company offering customized engineering products to automobile, infrastructure and engineering sectors.

In our IPO Analysis, we had concluded - Behari Lal Engineering fundamentals look promising. Supported by attractive pricing, we recommend ‘applying’ in the IPO.

The other new listing – Shiprocket. It too got listed at a premium but looks like will lose steam soon. As against the IPO price of Rs.97, it got listed on the BSE at Rs.129.50, rose to Rs.143.90 and is now trading at Rs.138 levels.

The IPO was overall subscribed 99.83x, with QIBs portion seeing the biggest response at 122.80x, HNIs at 88.99x and Retail at 46.42x.

Shiprocket is a 14-year-old Gurugram headquartered e-commerce enablement platform, being the largest in India, with 2.1 lakh active customers and 42 courier partners.

In our IPO Analysis, we had concluded - Shiprocket IPO reminds one of the 2021 IPO déjà vu. Weak fundamentals and over-pricing make it an avoid.