INSUBCONTINENT EXCLUSIVE:
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 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 ETAlthough 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.
