Following the share allotment of Adani Wilmar, investors are looking forward to the listing of yet another Adani-group stock. The FMCG player will be the second mainboard company to list in 2022 after AGS Transact which had a muted debut. Since it is an Adani-group company, investors have high hopes that it will be able to give positive returns. Adani Wilmar IPO grey premium also indicates to the strong possibility of positive listing.
Adani Wilmar IPO grey premium lower but positive
Ahead of the listing, Adani Wilmar IPO grey premium has stayed stable at INR25 per share. Although it is down from last month’s levels of INR100 per share, it is still positive and has not shown signs of panic among grey market buyers. Meanwhile, wider markets have been extremely volatile thereby impacting grey premiums across the board. The grey market premium of FMCG major of INR25 per share translates into an estimated listing price of INR255 per share and potential return of 10.9% on allotment price of INR230 per share.
As mentioned earlier, day-wise price movements have been one-sided not just in grey premium but also for kostak and subject to sauda rates. The informal market witnessed heightened activity on 20 January 2022 when Adani Wilmar’s kostak rate peaked to INR900. From that level, it has exactly halved and similar has been the case for subject to sauda rates.
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Post IPO strategy
So what should investors do on listing given that Adani Wilmar IPO grey premium is positive? Given the gloominess around, investors might like to book profits on listing and recover their costs. While listing is likely to be a positive affair, it might not be a bad idea to hold the stock a bit longer and let the selling pressure fade away. Most Adani group stocks have given bumper returns to investors in the last few years and it is worth remembering that Adani Wilmar has solid business fundamentals. As we highlighted in Adani Wilmar IPO analysis, the offer is made at attractive valuations when compared with its competitors.
