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While Dodla Dairy is trading at a premium of Rs 65-70, KIMS is trading at a premium of Rs 95-100 in the grey market. The premia can be translated as 15-20 per cent over the issue price, signalling a decent listing gain for both the issues.
Can we trust GREY market premium?
Grey markets have been existing for a long time and many investors and traders vouch by it. That’s because it can be an excellent opportunity for retail investors and traders to purchase the shares before they are listed, if they feel that the stock is going to increase in value.
What is the GMP of Shyam Metalics?
Shyam Metalics IPO GMP
| Date | GMP (in Rs) | Subject to Sauda |
|---|---|---|
| 10 June 2021 | 150 | 4800 |
| 09 June 2021 | 140 | |
| 08 June 2021 | 120 | |
| 07 June 2021 | 105 |
Grey market premium is nothing but the price at which the shares are being traded in the grey market. For instance, let’s assume the issue price for stock X is Rs 200. Ashwin is a trader in the stock market. He is allocated 500 shares at a certain issue price in an upcoming IPO.
Is Shyam Metalics a good IPO?
Shyam Metalics IPO got a strong response and was subscribed 121.43 times. The company, which is among India’s biggest producers of ferro-alloys, raised Rs 909 crore through the public issue. Shyam Metalics and Energy, a leading metal producing company, continued to witness strong buying interest.
What do underwriters do in an IPO?
IPO underwriters are financial specialists who work closely with the issuing body to determine the initial offering price of the securities, buy the securities from the issuer, and sell the securities to investors via the underwriter’s distribution network.
How are IPO listing prices determined?
The listing price of an IPO is decided by the market demand of the company and the IPO. The higher the demand, the higher the listing price. This will result in higher listing prices as more and more people will trade it in the secondary market because of higher demand.
What is grey market premium (GMP)?
This also means that the grey market is not a microcosm of the larger stock market in which the share would trade upon listing. GMP or Grey Market Premium is the premium at which equity shares from the IPO are being traded in the grey market.
Is Shyam metalics IPO GMP around ₹ 150 a positive sign?
Ravi Singhal of GCL security went on to add that Shyam Metalics IPO GMP has remained around ₹ 150 for the last five days that is also a positive sign for the counter till date. However, he maintained that the grey market premium is not the only factor that helps an IPO to succeed.
What is the Kims hospitals IPO all about?
Krishna Institute of Medical Sciences (KIMS): The IPO of the General Atlantic-backed KIMS Hospitals comprises fresh issue of shares aggregating up to Rs 200 crore and an OFS of up to 2,35,60,538 equity shares from promoters and existing shareholders.
What does the grey market tell us about the market?
The grey market, where investors seek the first cue on public issues, is sufficiently enthused too! The unofficial market for trading in unlisted shares is signaling good response for most of these issues.