Market observers say the craze is already growing in anticipation of the upcoming listing of these stocks. Investors rush to the unlisted market to buy these shares before unlocking the value.
Some of these companies have strong balance sheets and reliable financial indicators to support this madness.
ETMarkets.com has compiled a list of unregistered names that have been buzzing in the gray market in recent weeks amid rumors that they may be on the list for the next 18 months.
HDB Financial Services (HDBFS) Current price of unregistered market share:
With the strong origins of the HDFC group, HDB Financial Services is NBFC’s leading stock market, buzzing in the gray market and in high demand from investors. Established in 2008, NBFC serves both retail and retail customers. It has a well-established business with loan-based fees and BPO services with a strong capital base. It is accredited with an AAA rating for its long-term debt and banking facilities by CRISIL and Care Ratings. Its short-term debt and CP are rated A1 +, making it a reliable financial institution.
Expert opinion: Sagar Shah from Ascent Wealth Advisors believes that this is a good bet for NBFC. Despite the expensive estimates, he is ready to grow with a clean and strong balance.
“People buy these shares on the unquoted market at a premium. It is very likely that the IPO will receive a stable overdraft. That’s the buoyancy, “he said.
Nazareth Technology Current price of unregistered market share: Rs 650
Mumbai-based Nazara Technologies is one of the leading mobile gaming companies operating in India, West Asia, Africa, Southeast Asia and Latin America. Its operations include subscription, free and Esports businesses.
The company has independent subsidiaries called Next Wave Multimedia and NODWIN GAMING.
The big bull Rakesh Junghunwala supports this endeavor, which is attributed to some of the most popular games in the Google Play Store, such as the World Cricket Championship, Chhota Bheem Race and Motu Patlu Game.
According to the company, the drop in profit to 1 rupee for fiscal years 17-18 is due to one-off non-monetary and extraordinary expenses, including group share payments and employee share options.
Expert opinion: Dinesh Gupta of Unlisted Zone says the company has recently lost some of its luster. However, he was aggressive in the acquisition after recently acquiring a stake of Rs 7.5 crore in India’s leading quiz app Sports Unity.
Tamilnad Mercantile Bank (TMB) Current price of unregistered market share: Rs 370
Formerly known as The Nadar Bank, this lender has over 500 branches and 12 regional offices across the country. All branches are computerized and interconnected. Hailing from Tamil Nadu, the bank has strong roots in South India.
Expert opinion: This action received a mixed reaction from market experts. Sandip Ginodia of Abhishek Securities finds TMB a valuable bet. “The shares are available at 1.25 times the book value. A strong loan portfolio keeps forecasts high, “he said.
The group from UnlistedZone said that the development of YES Bank and RBL Bank has led to the carnage of these shares on the unlisted market, as there are better bets on the market.
Reliance Retail | Current price of unregistered market share: Rs 600
Reliance Retail, part of the Reliance group, is the largest retail company in India. The company, run by Mukesh Ambani, operates Reliance Fresh, Reliance Smart and Reliance Market and has a turnover of 1.3 rupees. He also manages all Reliance Digital, Mini Express Stores and Jio Stores.
In addition, he also manages Reliance Trends, Trends Women, Reliance Jewels, Reliance Footprints and the fashion website Ajio.
According to its annual report for 2019, the subsidiary of Reliance Industries had 10,415 stores in over 6,600 cities and towns in India, with a total area of over 22 million square feet as of March 31, 2019.
Expert opinion: Shah of Ascent Wealth believes that the valuation of the shares is very high compared to its counterpart Avenue Supermarts. Reliance Retail operates on a huge scale, which maintains constant pressure on margins. “The company has a very strong promoter. Retail will prosper in India.
He and Ginodia gave a thumbs up to this action from a long-term perspective.
Spikes Accessories I Current unregistered market share price: Rs 700
Studds is one of the largest manufacturers of two-wheeled helmets in the world. It has a 25 percent market share in India, boasting safety, comfort and style.
Established in 1983, the company has two production facilities located on 6 acres in Faridabad, Haryana.
The company has a presence in 39 countries and has launched 36 new products in seven different sizes in the last three years. The company also produces accessories for two-wheelers such as jackets, gloves and goggles. The company has already filed a DHRP with Sebi.
Expert opinion: Gupta said Studds would be the biggest beneficiary of the new Motor Vehicles Act. There is a great demand for helmets on the market and the company has the largest market share. He pointed out that helmet manufacturers who are not ISO certified will soon be fined heavily.
Chennai Super Kings (CSK) Current price of unregistered market share: Rs 30
The unregistered shares of this IPL franchise are attracting a lot of attention amid rumors about the possible retirement of MS Dhoni. CSK is IPL’s most successful franchise, winning the title three times. The unregistered amount traded in the range of 12-15 rupees in the last week of November 2018 and then jumped to 30-35 rupees by mid-April 2019.
Expert opinion: Ginodia and Shah find the shares very attractive. Ginodia said FY19 PAT is on the expected lines. However, Shah suspects a drop in the value of the brand after Donnie retires. But he also finds the performance of the shares at face value.