IPO Battleground: Vikran Engineering vs. Anlon Healthcare – A Deep Dive into GMP, Subscriptions, and Listing Prospects

The initial public offering (IPO) market for Small and Medium Enterprises (SMEs) recently witnessed a thrilling showdown as two promising entities, Vikran Engineering & Exim Limited and Anlon Healthcare, simultaneously opened and closed their subscription windows. Investors were keen to gauge which of these offerings would emerge as the frontrunner in terms of market interest and potential listing gains.

Both IPOs, despite catering to different sectors, garnered significant attention, leading to substantial oversubscription levels and notable Grey Market Premiums (GMPs).

Vikran Engineering & Exim Limited, operating in the engineering and infrastructure sector, launched its IPO with a price band of Rs 60 per share.

The issue, which aimed to raise Rs 20.02 crore, was open for subscription from January 23 to January 25, 2024. Investors could bid for lots of 2000 shares, with the company slated for listing on the BSE SME platform. The investor response was overwhelmingly positive, leading to an impressive overall subscription of 70.33 times.

Qualified Institutional Buyers (QIBs) led the charge with a subscription of 89.28 times, closely followed by Non-Institutional Investors (NIIs) at 72.88 times. Retail investors also showed strong enthusiasm, subscribing 59.18 times their allotted portion. Ahead of its official listing on January 31, 2024, the Grey Market Premium for Vikran Engineering & Exim IPO stood at Rs 15 on January 25, indicating a potential listing gain of approximately 25% for investors.

On the other side of the arena was Anlon Healthcare, a player in the burgeoning healthcare sector, which also commenced its IPO subscription on January 23 and concluded on January 25, 2024.

Priced at Rs 100 per share, Anlon Healthcare's IPO aimed to secure Rs 15 crore, offering investors lots of 1200 shares. This offering was designated for listing on the NSE SME platform. Similar to its counterpart, Anlon Healthcare's IPO was met with robust demand, achieving an overall subscription of 55.45 times.

Non-Institutional Investors subscribed 55.88 times, while the retail segment showed strong participation with a subscription of 55.02 times. What truly set Anlon Healthcare apart in the pre-listing buzz was its considerably higher Grey Market Premium. On January 25, its GMP was reported at Rs 55, translating to a potential listing gain of a remarkable 55% for early investors.

Comparing the two, while both IPOs experienced significant oversubscription, Anlon Healthcare appeared to capture the imagination of the grey market more strongly.

Its GMP of Rs 55 suggested a much higher expected premium on listing day compared to Vikran Engineering's Rs 15. This disparity in GMP often reflects the market's perception of a company's future growth prospects, sector appeal, and overall financial health. Despite Vikran Engineering’s slightly higher overall subscription rate (70.33x vs 55.45x), the percentage gain indicated by Anlon Healthcare's GMP was substantially more attractive.

Both companies are set to finalize their allotment on January 29, 2024, and make their official market debut on January 31, 2024.

The strong investor interest in both these SME IPOs underscores the vibrant activity in this segment of the capital market. Investors will now eagerly await the listing day to see if the grey market predictions hold true and which of these two IPOs ultimately delivers the stronger returns upon entering the secondary market.