HD Fire Protect and Fusion CX IPOs Open for Bidding With Strong Grey Market Premiums

Two mainboard initial public offerings, HD Fire Protect and Fusion CX, remain open for bidding on Wednesday, 14 October.

Subscription Details

HD Fire Protect opened for subscription on Tuesday, 13 October and will close on Thursday, 15 October, while Fusion CX opens on Wednesday, 14 October and closes on Friday, 16 October. On its first day, HD Fire Protect was subscribed 4.62 times, attracting bids for 8,50,40,395 shares against 1,84,20,492 shares available. Non-institutional investors subscribed 11.38 times, retail investors 3.78 times, and qualified institutional buyers 1.04 times.

Grey Market And Price Bands

HD Fire Protect features a price band of ₹258 to ₹271 per share in its ₹712-crore issue, which is entirely an offer for sale of 2.63 crore equity shares by promoters Harish Narshi Dharamshi and Kusum Harish Dharamshi. The company raised ₹213.11 crore from anchor investors and commands a grey market premium of ₹91, pointing to a likely listing price of ₹362, or 33.58% above the issue price. Fusion CX features a ₹702 crore IPO with a price band of ₹275 to ₹289 per share, comprising a fresh share sale worth ₹500 crore and an offer for sale of 69.90 lakh shares valued at ₹202 crore. Its grey market premium stands at ₹33.5, indicating an estimated listing price of ₹322.5, which is 11.59% higher than the issue price. Allotment is expected on October 19, with listing on October 22.

Context

Grey market premiums reflect unofficial market sentiment before a company's shares officially list on stock exchanges. Initial public offerings allow private companies to raise public capital by issuing new shares or offering existing shares to investors.