Grey Market Premium (GMP) is generally considered to be an indication of the listing price.
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. Companies opt for the Initial Public Offerings to raise funds from the public.
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Post the issuance of the IPO, a private limited company becomes a public limited company. The recent times have been significant for the investors who aspire to subscribe to IPOs. Two companies opened the subscription window for the IPOs this week. The other two are yet to be opened for the investors. It is not a difficult task to find out the returns yielded on an IPO. Grey Market Premium (GMP) is generally considered to be an indication of the listing price. This space articulates information about the 4 IPOs and their grey market premium.
1. New Swan Multitech
The IPO of New Swan Multitech opened on January 11 and can be applied till January 15. The lot size of this engineering component manufacturing small and medium-sized enterprises is 2000 shares. Its price band is between Rs 62 to Rs 66 per share. Its grey market premium on January 8 was Rs 35. It can increase or decrease as there is a week left before the opening of the IPO’s subscription window. If the price of Rs 35 continues, then the profit on one lot can be around Rs 50,000.
2. Australian Premium Solar
Investors can also apply for the IPO of Australian Premium Solar (India) from January 11 to 15.
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The company has brought a public issue of Rs 28 crore. Australian Premium Solar IPO’s price band is between Rs 51-54. This IPO also belongs to the SME category. Retail investors will be able to apply for 1 lot or 2000 shares of this IPO. The grey market premium of this IPO was Rs 10 on January 8. If the stock is listed above Rs 10 per share, investors will get a profit of Rs 15.
3. Jyoti CNC Automation
Jyoti CNC Automation’s IPO was open for subscription from January 9-11. The investors bid on these dates and the price band for Jyoti CNC was kept between Rs 315-331. The lot size of this IPO was 45 shares. Its GMP (Grey Market Premium) on January 8 is Rs 80. As per a report in investorgain.com, the Grey Market Premium was Rs 48. On January 4, Jyoti CNC Automation’s GMP was Rs 145.
4. IBL Finance
IBL Finance’s IPO is called SEM IPO and was open for subscription between January 9-11. The starting price of the bidding was Rs 1,02,000. Its issue price was Rs 51 per share while the lot size was 2000 shares. The company aimed to raise Rs 33.4 crore through this IPO.
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IBL Finance IPO grey market premium was Rs 0, which meant shares were trading at their issue price of Rs 51. According to investorgain.com, there was no premium or discount in the grey market. Grey market premium indicates investors’ readiness to pay more than the issue price.
