BLS Polymers listed 65% above its issue price on Tuesday, giving allottees almost ₹10,000 per lot. In percentage terms that was about three times Jio Platforms’ listing gain. SFC Environmental, which opened the same day, listed just 7.6% higher.
BLS Polymers listed at ₹248 on the NSE on Tuesday, a premium of 65.33% over its issue price of ₹150. On the BSE it opened at ₹244.10, a 62.73% premium.
An allottee with one lot of 100 shares made a listing gain of ₹9,800 on the NSE. At the listing price, BLS Polymers was valued at about ₹1,514 crore, against about ₹930 crore at the IPO’s upper price band.
The listing beat the grey market. Before listing, the grey market premium was about 46%. The actual premium was almost 20 percentage points higher.
About three times Jio’s percentage gain
In percentage terms, BLS’s 65% premium was about three times Jio Platforms’ 21.36% gain last week. The comparison is not like for like. Jio raised ₹30,213 crore and BLS raised ₹255 crore. But it shows how listing gains depend on issue size.
SFC Environmental Technologies, on the other hand, listed with a gain of 7.61%, which is a smaller gain. Its IPO had been subscribed about 9 times, against roughly 240 times for BLS.
Why the difference
The two IPOs opened on the same day, but their structures were very different.
Issue size. BLS raised ₹255 crore, SFC ₹667.53 crore. A small issue with 240 times subscription means huge demand for very few shares. Many investors who missed out bought on listing day, pushing the price up.
New money versus selling shareholders. All of BLS’s issue was new capital for its Goa plant and working capital. Most of SFC’s issue was an offer for sale by existing shareholders. This season, investors have consistently preferred fresh issues.
Sector. BLS makes polymer compounds for wires, cables and pipelines, which connects it to the strong demand for power transmission and electrification. Cable makers have reported 38–48% growth this season. SFC’s wastewater business is useful but has less investor interest.
Can the gains hold?
After a 65% first-day rise, BLS is valued at roughly 60% more than at its IPO price. Small companies with very large listing gains often fall back in the following weeks as early buyers take profits and the share price adjusts to actual earnings. Investors who bought on listing day are paying for growth that has not yet happened.
Small issues in priority sectors such as defence, power and electrification, raising new money, are producing large listing gains. Larger offers for sale produce small or no gains.
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