Unlisted shares of GSM Foils Limited are trading Rs 8 higher in the grey market, expecting a 25 per cent listing gain from the public issue.
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GSM Foils IPO: The initial public offering of GSM Foils Ltd, which was opened for public subscription on May 24, has received a strong response from investors. Till 10:55 am on the second day of bidding on Monday, the Rs 11.01-crore SME IPO received a decent 31.23 times subscription, garnering bids for 10,19,44,000 shares as against 32,64,000 shares on offer.
The GSM Foils IPO will be closed on Tuesday, May 28.
The retail category has received a 51.04 times subscription, while the non-institutional investor (NII) category got an 11.41 times subscription.
The GSM Foils IPO allotment will likely be finalised on May 29, while the listing will take place on May 31 on the NSE SME.
The price of the IPO was fixed at Rs 32 per share.
GSM Foils IPO GMP Today
According to market observers, unlisted shares of GSM Foils Limited are trading Rs 8 higher in the grey market as compared with its issue price. The Rs 8 grey market premium or GMP means the grey market is expecting a 25 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
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‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About GSM Foils IPO
The GSM Foils IPO is entirely a fresh issue of 34.4 lakh shares. Its bidding opened for subscription on May 24, 2024, and will close on May 28, 2024.
The price of the GSM Foils IPO is Rs 32 per share. The minimum lot size for an application is 4,000 shares. The minimum amount of investment required by retail investors is Rs 1,28,000. The minimum lot size investment for HNI is 2 lots (8,000 shares) amounting to Rs 2,56,000.
Shreni Shares Limited is the book running lead manager of the GSM Foils IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for GSM Foils IPO is Shreni Shares.
GSM Foils Limited, established in April 2019, manufactures Blister Foils and Aluminium Pharma Foils, also known as “Strip Foils,” used for packaging pharmaceutical medicines such as capsules and tablets. These foils are primary packaging materials that come into direct contact with the medicine, so utmost care is taken to ensure their quality.
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GSM Foils Ltd’s revenue fell 8.3 per cent and its profit after tax (PAT) rose 124.62 per cent between the financial year ending with March 31, 2023 and March 31, 2022.
