Retail investors who applied for the Equitas IPO have started receiving the refund amount blocked under ASBA. Investors with savings bank accounts in Yes Bank, State Bank of India, Union Bank and ICICI Bank have reported that the ‘hold‘ placed on their application amount has been released and they have received SMS alerts confirming the same. Investors can now expect the shares to be credited to their Demat account by the 20th April as the shares will begin trading on the NSE and BSE on the 21st April.
HDFC Bank, Bank of Baroda and Kotak Bank Account Holders have still not been informed about the allotment, they must be patient and wait until Monday to know the updated status of their applications. The basis of allotment is now clear, all applicants have been allotted a minimum of 135 shares each. Some users have posted fake claims on forums claiming they have been allotted more than 1000 shares of Equitas, these claims are bogus and made by vested interests to discredit the IPO book managers.
Check Your Allotment Status
Investors who are anxious to know about the status of their applications can check it online at the link below. (Please Note : The details of allotment are yet to be updated by Karvy.It might take 2-3 days to start functioning.)
Investors who had applied through ICICI Direct first reported receiving SMS alerts on 14th April 2016 intimating them about the amount deducted for the shares allotted. The amount debited was Rs 14,850 for 135 shares of Equitas Holdings Ltd at the price of Rs 110 each. You can also login into your ICICI Direct account and click on Order Book in the IPO sub menu, where it will show you the amount of shares allotted for your application.
Equitas could list between Rs 135- 150
The shares of Equitas are currently trading at a grey market premium (GMP) of Rs 25 per share. Some analysts believe this means Equitas could list around Rs 135 and then could climb up to end the day closer to Rs 150. The sentiment in the stock market is also quite bullish with the Monsoon expected to be above normal , the NIFTY has rallied more than 200 points this week.
International stock markets have also performed well over the past few days with the Nikkei is leading the pack by rallying more than 5% over the last two trading sessions. The short term outlook for the stock markets is very positive and hence you can expect Equitas to list with a bang.
Long Term Investment
Investors should buy more stock on listing day because it’s valuation is much lower than it’s listed peers like SKS Microfinance. Many retail investors who have got minimum allotment of 135 shares will sell it on listing day and control of the stock would move into the hands of domestic institutional investors and mutual funds. You can purchase the stock with a one year price target of Rs 300 by April 2017.