Investing in Initial Public Offerings (IPOs) is an exciting opportunity for investors to get in on the ground floor of a company’s journey into the stock market. However, one crucial factor that often goes unnoticed is the Grey Market Premium (GMP). The GMP provides insights into the demand for an IPO even before it hits the market. In this article, we will take a closer look at the GMP of some current and upcoming IPOs to help investors make informed decisions.
Understanding Grey Market Premium (GMP):
The Grey Market Premium, commonly known as GMP, is a price at which shares of an IPO are trading in the unofficial secondary market before their official listing on stock exchanges. It is an indicator of investor sentiment and demand for the company’s shares. A positive GMP suggests strong demand, while a negative GMP indicates otherwise.
Analyzing the Current & Upcoming IPOs:
Here’s a table showcasing the GMP of five current and upcoming IPOs:
| Company | Price (INR) | IPO GMP (INR) | GMP % |
|---|---|---|---|
| Manoj Vaibhav Gems ‘N’ Jewellers | 215 | 8 (4%) | |
| JSW Infrastructure | 119 | 25 (21%) | |
| Updater Services Limited Price | 300 | 0 (0%) | |
| Valiant Laboratories IPO Price | 140 | 11 (8%) | |
| Plaza Wires IPO | 54 | 11 (20%) |
1. Manoj Vaibhav Gems ‘N’ Jewellers:
- IPO Price: INR 215
- GMP: INR 8 (4%)
2. JSW Infrastructure:
- IPO Price: INR 119
- GMP: INR 25 (21%)
3. Updater Services Limited:
- IPO Price: INR 300
- GMP: INR 0 (0%)
4. Valiant Laboratories:
- IPO Price: INR 140
- GMP: INR 11 (8%)
5. Plaza Wires IPO:
- IPO Price: INR 54
- GMP: INR 11 (20%)
Analysis
- Manoj Vaibhav Gems ‘N’ Jewellers: This IPO has a positive GMP of INR 8 (4%), indicating moderate demand.
- JSW Infrastructure: The IPO of JSW Infrastructure is showing a strong GMP of INR 25 (21%), suggesting high demand from investors.
- Updater Services Limited: There is no GMP reported for this IPO, which might indicate a lack of investor interest in the unofficial market.
- Valiant Laboratories: This IPO has a positive GMP of INR 11 (8%), suggesting moderate demand.
- Plaza Wires IPO: With a GMP of INR 11 (20%), Plaza Wires IPO is showing strong demand in the grey market.
