All eyes on share allocation, what GMP says



RG infrastructure projects, clean science IPOs: Tenders for GR infrastructure projects and Clean Science IPOs ended on July 9, 2021. Both questions received rave responses from bidders as the IPO of GR Infrastructure Projects was subscribed 102.58 times while the IPO of Clean Science was subscribed 93.41 times. Meanwhile, this outstanding response from subscribers also drove the performance of the respective stocks in the gray market. According to market watchers, both stocks were available at around a 50% gray market premium as of the last auction date, but after the auction ended their gray market premium jumped around 5%. % and currently both stocks are available at almost 55 percent premium on the gray market. So, this increase in GMP IPO GR Infrastructure and GMP IPO Clean Science would definitely shift the focus on the share grant date, as a higher GMP is seen as higher listing gains by most IPO bidders.

Speaking on the rise of GR Infrastructure GMP’s IPO and Clean Science GMP’s IPO Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “The rise in GMP is an unofficial sentiment short-term regarding listing on the stock exchange. market expectations for listing gains on the date the share price is listed. But, like I said, it’s unofficial, unregulated and it also involved those people, who have a high stake in the success or failure of the IPO. , it’s the finances that matter most. “

GR Infrastructure IPO GMP is today 458 to 463 this means around 55% listing gains for the IPO as the issue price is set at 828 to 837. Likewise, Clean Science IPO GMP is today 495 to 510, this also means that almost 55% of the listing raises the expectations of gray market players. By converting the GMP to the expected listing price, GR Infra IPO GMP indicates that it would be listed around 1295 to 1300 while the Clean Science IPO listing price would be around 1395 to 1410 (according to today’s GMP for both IPOs).

Advising bidders to view financial data as a more concrete indicator of IPO, Abhay Doshi, founder of UnlistedArena.com, said: “According to its financial data, Clean Science & Technologies manufactures critical specialty chemicals on the functional plan. exports. The company has a history of strong and consistent financial performance. “

Regarding the fundamentals of GR Infrastructure Projects IPO, Abhay Doshi said, “Operationally, the company has experienced the fastest growth in operating profit with a CAGR of 47% ( growth average compound) from FY15 to FY20. The price of the issue is quite reasonable compared to its The P / E (Private Equity) ratio amounts to the multiple of 8.5 for the profits of the financial year 21, which leaves enough room for investors . “

On the quotation gain that can be expected from these two IPOs, Avinash Gorakshkar of Profitmart Securities said: “The way the bidders have answered these two public questions, we can expect quotation gains. in these IPOs from 30 to 35% to even up to 100 percent, because a particular section of the market does not invest money in stocks but in IPOs. So, after the listing, the stock should hold its place for at least three to four days and my advice to lucky bidders is to hold the box office for at least two to three days, as FIIs and mutual fund companies should intervene after the listing of the two shares. “

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