ipo grey market premium: Grey market premia of Nazara, Anupam, Laxmi decline sharply
The grey market premium (GMP) of Anupam Rasayan has suffered the most, plunging by 54 per cent. It now trades at a premium of Rs 80 against Rs 173 early last week. The primary market issue of the company was subscribed 44 times led by high networth investors.
Similarly, GMP for Laxmi Organic has come down to Rs 62 from Rs 98, said Abhay Doshi, Founder of Unlisted Arena, a portal that tracks unlisted market. The issue was subscribed 106 times.
The premium for Rakesh Jhunjhunwala-backed Nazara Technologies has come down to Rs 750 from Rs 820, a drop of 9 per cent while the same for Suryoday Small Finance Bank has vanished and the stock is trading at par with its issue price. Both were subscribed 175 times and 2.37 times during the bidding process, respectively.
Craftsman Automation, which demanded a valuation of 73 times FY 20 earnings and was subscribed nearly 4 times, was trading at a premium of Rs 40 over the issue price.
All these stocks are slated to be listed within the next couple of weeks.
GMP, which is the premium traders are willing to pay for unlisted shares, is usually a good indicator for possible listing gains for debutants at the bourses. However, last week Easy Trip Planners disappointed investors as it listed at a 13 per cent premium against an expectation of 85 per cent in the grey market.
The listing gain on Friday for Easy Trip was substandard for an IPO that was subscribed a whopping 159 times. If one goes by data, it was the worst IPO listing for an issue with over 100 times subscription, at least in recent times.
A relentless selling in the secondary market along with ignorance of investors who simply shrugged at the fact that the travel sector prospects were dim even for FY22 — the muted listing gains on Friday mocked solid premiums the stock was enjoying in the grey market.
Analysts said it would have repercussions on the listing day euphoria for other issues and that is being seen in grey market premiums now.
“The (Easy Trip) listing should impact the IPO euphoria in the market a bit, but felt good and reasonably valued IPOs may continue to enjoy strong listing momentum,” said Astha Jain of Hem Securities.
