India Pesticides IPO: GMP suggests strong listing of shares

Observers believe that such rise in share premium in grey market is a good sign in the current choppy market trends. Photo: India Pesticides portal

1 min read . Updated: 01 Jul 2021, 09:50 AM IST Livemint, Edited By Asit Manohar

India Pesticides IPO GMP today is ₹50, which is ₹12 higher from its yesterday GMP of ₹37 to ₹38

India Pesticides Limited IPO (Initial Public Offer) allotment process is underway and it will be completed by 2nd July 2021 after the credit of shares in the allotees Demat Account. While the public issue applicants are busy checking their India Pesticides IPO allotment status, market observers are busy checking India Pesticides share price in the grey market. As per the market observers, India Pesticides IPO GMP today is ₹50, which is ₹12 higher from its yesterday GMP of ₹37 to ₹38. Observers believe that such rise in share premium in grey market is a good sign in the current choppy market trends.

Speaking on India Pesticides Limited IPO GMP today Kapil Goenka, Director at CM Goenka Stock Brokers said, "Looking at the continuous decline with choppy trend in the market, jump in the grey market premium reflects strong listing of the issue expected by the markets. However, if we look at the financials of the market, it looks a stock to keep in one's portfolio for long-term."

On how GMP is being taken by the IPO investors Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Grey market premium of an IPO is nothing but an unofficial listing gain indicator before listing of the issue. The grey market premium is being taken as the expected gain for the IPO being speculated by the grey market. But, it has nothing to do with the financials of the company and hence it should not the only criteria for making any conclusion about the listing of the issue."

Gorakshkar said that if the grey market premium of the issue is ₹50 that means the market is expecting India Pesticides IPO listing ₹50 above the issue price offer of ₹290 to ₹296.

So, if we go by Gorakshkar's views, market observers of the grey market are expecting India Pesticides IPO listing at around ₹346, which is to the tune of around 15 per cent listing premium.

As per the Red Herring Prospectus (RHP) of the issue, India Pesticides Limited IPO will be listed at both NSE and BSE on 5th July 2021.

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