BLS Polymers GMP at 44% ahead of listing tomorrow; should investors buy, sell or hold? Here's what analysts say

At the upper end of the IPO price band of Rs 150, the GMP indicates a potential listing price of Rs 216 per share. However, the grey market premium is an unofficial indicator of investor sentiment and does not guarantee listing gains. It can fluctuate depending on market conditions and demand ahead of the listing. Read Also: From table cleaner to Rs 1,700-crore food business: How K S Thirupathi Raja built Adyar Ananda Bhavan (A2B)

The strong grey market premium comes after the IPO received an impressive response from investors, with the issue subscribed 241.22 times, according to NSE data. Investors placed bids for 287.05 crore shares against 1.19 crore shares on offer. The non-institutional investor (NII) category led the demand, with its reserved portion subscribed 559.20 times. The qualified institutional buyer (QIB) category was subscribed 200.25 times, while the retail investor portion received bids for 128.36 times the shares reserved for it.

The IPO opened for subscription on October 27 and closed on October 29. The company had fixed the price band at Rs 142-150 per share, valuing it at approximately Rs 930.5 crore at the upper end of the price band. The issue comprised an entirely fresh issue of 1.7 crore equity shares. The company will use the proceeds to fund its expansion and working capital requirements. Of the total proceeds, Rs 77.56 crore has been earmarked for expanding its existing manufacturing facility in Goa, while Rs 89.5 crore will be utilised towards working capital requirements.

The remaining amount will be used for general corporate purposes. The allotment was scheduled to be finalised on October 30, while refunds and credit of shares to demat accounts were expected on November 2. BLS Polymers shares are scheduled to list on the BSE and NSE on November 3. Should you buy, sell or hold? Commenting on the company's listing prospects and investment outlook, Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said BLS Polymers is positioned to benefit from rising investments in infrastructure sectors.

"BLS Polymers is well-positioned to benefit from rising investments in power, telecom, railway and pipeline infrastructure, supported by its diversified product portfolio, customised manufacturing capabilities and established market presence," Solanki said. On the listing outlook, Solanki expects the stock to make a decent debut. "The company is expected to list at a decent premium. Investors may continue to hold the stock from a long-term perspective or partially book profits," he said.

Based in New Delhi, BLS Polymers manufactures custom-formulated polymer compounds in different grades for industrial applications. Its products are used as raw materials for the sheathing, jacketing and insulation of wires and cables deployed across the power, telecommunications and railway sectors. The company's polymer compounds are also used to coat underground oil, gas and water pipelines, helping protect them against corrosion and external environmental factors.

BLS Polymers currently operates a manufacturing facility in Goa equipped with 11 dedicated production machines. The proposed expansion is aimed at increasing the production capacity of selected products.