IPO GMPs: Leela Hotels IPO vs Aegis Vopak Terminals IPO — what grey market premiums signal?

IPO GMPs: A slew of initial public offerings (IPOs) have hit the Dalal Street, adding vibrancy to the primary market with a mix of small and large share sales. 

Leela Hotels IPO and Aegis Vopak Terminals IPO, which opened today, are off to a slow and steady start. With more days ahead, there is a strong possibility that these IPOs will succeed in a generally positive market. As overall sentiment improves, investors have begun to enthusiastically subscribe to IPOs. Last week, two mainboard IPOs saw significant demand, with Borana Weaves IPO closing with an impressive 148.77 times bids by the final day on Thursday, while Belrise Industries IPO was subscribed 41.30 times.

According to a report by Bajaj Broking, the Indian primary market is experiencing a significant resurgence this month, with seven prominent IPOs entering the market and many more anticipated for June. This increase indicates a revival in investor confidence, bolstered by stable macroeconomic factors and strong performance in the secondary market.

What stands out is the wide range of sectors represented — including auto components, hospitality, infrastructure, and textiles — reflecting a general optimism among corporations. There is substantial participation from large institutions and favorable grey market premiums, indicating that both retail and HNI investors are actively involved in these new offerings.

If this trend continues, we may be witnessing one of the most robust quarters for primary markets in recent times.

Let's take a look at the grey market premium trends:

IPO GMP

Leela Hotels IPO GMP today is +13. This indicates Leela Hotels share price is trading at a premium of ₹13 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Leela Hotels share price is indicated at ₹448 apiece, which is 2.99% higher than the IPO price of ₹435.

The grey market trend over the past ten days shows that the IPO GMP is in an upward trend today, signalling a strong listing. The minimum GMP recorded was nil, whereas the maximum GMP stands at ₹20, as stated by experts from investorgain.com.

Aegis Vopak Terminals IPO GMP today is +10. This indicates Aegis Vopak Terminals share price is trading at a premium of ₹10 in the grey market on Monday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Aegis Vopak Terminals' share price was indicated at ₹245 apiece, which is 4.26% higher than the IPO price of ₹235.

According to the grey market activities from the past week, today’s IPO GMP is showing an upward trend, hinting at a robust listing. The minimum GMP recorded was nil, whereas the maximum GMP stands at ₹15, as per the experts at investorgain.com.

Grey market premium indicates investors' readiness to pay more than the issue price.

IPO details

Schloss Bangalore Ltd, which runs Leela Palaces Hotels and Resorts, is launching an IPO valued at ₹3,500 crore, consisting of a fresh equity share issuance worth ₹2,500 crore and an offer for sale (OFS) of shares worth ₹1,000 crore from the promoter Project Ballet Bangalore Holdings (DIFC) Pvt Ltd.

Backed by Brookfield Asset Management, Schloss Bangalore intends to use the funds from the fresh issue to pay off loans taken by the company and its subsidiaries along with general corporate needs.

According to the red herring prospectus (RHP), as of March 2025, the total borrowings of the company surpassed ₹3,900 crore.

Aegis Vopak Terminals IPO that consists solely of a new issue of equity shares amounting to ₹2,800 crore, with no component for OFS, as indicated in the RHP. The IPO was initially intended to raise ₹3,500 crore.

Of the proceeds, ₹2,016 crore will be allocated for debt repayment, ₹671.30 crore will go towards financing capital expenditures for acquiring a cryogenic LPG terminal in Mangalore, and the remaining funds will be designated for general corporate needs.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.