Nykaa shares listing: What GMP reflects after share allotment
Premium- Nykaa share listing: According to market observers, Nykaa IPO GMP today is ₹765, which is ₹35 higher from its yesterday's grey market premium of ₹730
Nykaa IPO GMP: After announcement of share allotment of the public issue worth ₹5,351.92 crore, all eyes are not set on the Nykaa IPO share listing date, which is expected on 11th November 2021. However, ahead of share listing date, grey market has gone highly bullish on the initial public offering. According to market observers, shares of Nykaa are available at a premium of ₹765 in the grey market today. They said that Nykaa IPO grey market premium (GMP) has been rising for the last one week and this trend has continued after the announcement of share allotment as well.
Nykaa IPO GMP
According to market observers, Nykaa IPO GMP today is ₹765, which is ₹35 higher from its yesterday's grey market premium of ₹730. They said that Nykaa IPO grey market premium (GMP) was around ₹590 to ₹630 last week that further went up to the tune of ₹765 after the finalisation of Nykaa share allotment. They said that rising GMP of the public issue is a good sign and it reflects strong listing of Nykaa shares on its listing date.
What this Nykaa GMP means
Nykaa GMP today at ₹765 simply means that grey market is expecting share listing at around ₹1890 ( ₹1125 + 765), which is around 68 per cent higher from Nykaa IPO price band of ₹1085 to ₹1125. Market observers went on to add that generally GMP goes down after the announcement of share allotment but in the case of Nykaa IPO, GMP has gone further up by ₹35. They predicted strong listing premium for the lucky bidders provided the market sentiment continues to remain positive on the listing date as well.
Highlighting the fundamentals of Nykaa IPO; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the TTM (Jun 2021) adjusted EPS (Earnings Per Share) of ₹2.54 on the post-issue basis, the company is going to list at a P/E of 443.46 with a market cap of ₹5,32,040 million. There are no listed companies in India whose business is comparable with that of the company’s business. The company is one of the leading lifestyle-focused consumer technology platforms and a preferred destination for luxury and prestige products in India for consumers and brands. However, valuations on an absolute basis based on past financials keep us cautious at the same time."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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