Krsnaa Diagnostics IPO: What GMP signaling about the public issue

Krsnaa Diagnostics IPO grey market premium today is ₹310, this means grey market is expecting listing of Krsnaa Diagnostics IPO at ₹1264 ( ₹954 + ₹310). Photo: Courtesy Krsnaa Diagnostics website

2 min read . Updated: 12 Aug 2021, 10:08 AM IST Livemint, Edited By Asit Manohar

Krsnaa Diagnostics IPO GMP today is ₹310, say market observers

Krsnaa Diagnostics IPO: After getting subscribed over 64 times of its initial offer, Krsnaa Diagnostics shares have been trading at a premium range of ₹300 to ₹350 in grey market for the last five days. According to market observers, Krsnaa Diagnostics IPO GMP during subscription was at ₹425 to ₹450 but once the bidding closed, it came down to around ₹300 to ₹350. However, market observers are of the opinion that grey market premium above ₹300 is a strong signal as the issue price of the Krsnaa Diagnostics IPO has been fixed at ₹933 to ₹954. They said that 30-35 per cent listing gain indicated by the grey market for last few days signals about moderate to reasonable listing of Krsnaa Diagnostics shares at Indian bourses.

Krsnaa Diagnostics IPO: Grey market conviction

Krsnaa Diagnostics IPO GMP today is ₹310. According to market observers, Krsnaa Diagnostics IPO grey market premium has been consistently oscillating in ₹300 to ₹350 range that means grey market is expecting around 30 to 35 per cent listing gain from this public issue. They said that such listing premium in the grey market indicates about moderate to reasonable listing of the Krsnaa Diagnostics shares at Indian bourses.

What this GMP mean for Krsnaa Diagnostics shares?

Market observers maintained that grey market premium of a public issue is an indication about the expected listing premium from the IPO. As Krsnaa Diagnostics IPO grey market premium today is ₹310, this means grey market is expecting listing of Krsnaa Diagnostics IPO at ₹1264 ( ₹954 + ₹310).

On expected listing premium that financials of the company suggests; Abhay Doshi, Founder at UnlistedArena.com said, "I am very reasonable listing gains for Krsnaa Diagnostics IPO. If the market conditions remains favourable, it may get listed at around ₹1200 to ₹1250."

On financials that may lead to favourable listing for the bidders; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 diluted EPS of ₹12.25, the company is going to list at a P/E of 77.88 with a market cap of ₹2,994.1 crore, while its peers namely Dr Lal Path Labs and Metropolis Healthcare are trading at a P/E of 75.15 and 79.71 respectively."

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