[ad_1]
MUMBAI: Investors are set for strong gains from the listing of a slew of IPOs, which hit Dalal Street last week if the grey market premiums (GMP) are any indication. GMP is the markup on the price of a stock in the unofficial market ahead of listing .
For instance, the stock price of Tata Technologiesis commanding a GMP of between Rs 400-410 – about an 80% markup on its IPO price of Rs 500, say sources.The maiden offering by aTata Group company after nearly two decades – through which some of its existing shareholders are selling stakes – was subscribed 69 times. The offer was worth Rs 3,043 crore.
Similarly, the stock price of Indian Renewable Energy Development Agency (IREDA), through which the government sold part of its stake in the company, is attracting a GMP of about 30%, against an IPO price of Rs 31. IREDA is expected to be listed at Rs 40-42, market sources said. The offer, via which the government is mobilising Rs 2,150 crore, was subscribed 39 times.
Read story from ET
Although GMP is an unofficial data point, market players say that it does influence the listing price of a company’s stock after the IPO. Usually, the bigger the subscription figure for an IPO during the bidding process, the higher is the GMP.
The stock price of Gandhar Oil Refineries is attracting a GMP of about 45%. With the IPO price fixed at Rs 169, the GMP is about Rs 75. The company is raising Rs 501 crore through this offer. The Flair Writing Industries IPO worth Rs 593 crore – which closed with a subscription figure of 47 times – could list around Rs 385-390. Against an IPO price of Rs 304, the current GMP for the stock is Rs 85.
Fedbank Financial Services, which closed its Rs 1,092-crore IPO with a subscription figure of 2.2 times, is the only one of the five offers where there’s muted investor interest with GMP figures available. IREDA, is slotted to list on Tuesday, while the other four are set to list on Wednesday.
For instance, the stock price of Tata Technologiesis commanding a GMP of between Rs 400-410 – about an 80% markup on its IPO price of Rs 500, say sources.The maiden offering by aTata Group company after nearly two decades – through which some of its existing shareholders are selling stakes – was subscribed 69 times. The offer was worth Rs 3,043 crore.
Similarly, the stock price of Indian Renewable Energy Development Agency (IREDA), through which the government sold part of its stake in the company, is attracting a GMP of about 30%, against an IPO price of Rs 31. IREDA is expected to be listed at Rs 40-42, market sources said. The offer, via which the government is mobilising Rs 2,150 crore, was subscribed 39 times.
Read story from ET
Although GMP is an unofficial data point, market players say that it does influence the listing price of a company’s stock after the IPO. Usually, the bigger the subscription figure for an IPO during the bidding process, the higher is the GMP.
The stock price of Gandhar Oil Refineries is attracting a GMP of about 45%. With the IPO price fixed at Rs 169, the GMP is about Rs 75. The company is raising Rs 501 crore through this offer. The Flair Writing Industries IPO worth Rs 593 crore – which closed with a subscription figure of 47 times – could list around Rs 385-390. Against an IPO price of Rs 304, the current GMP for the stock is Rs 85.
Fedbank Financial Services, which closed its Rs 1,092-crore IPO with a subscription figure of 2.2 times, is the only one of the five offers where there’s muted investor interest with GMP figures available. IREDA, is slotted to list on Tuesday, while the other four are set to list on Wednesday.
#IPOs #Grey #market #buzz #IPOs #set #strong #listing
