NEW DELHI: Even though the management of Macrotech Developers sounded confident that its IPO will create “a huge amount of value” for investors, grey market premium for the unlisted shares has dried up just ahead of Wednesday’s opening of the issue.
Dealers active in the unofficial market for unlisted stocks, or grey market, said the premium enjoyed by the stock has come down to Rs 2-4, as investors’ risk appetite declined sharply in the past few weeks following the re-emergence of Covid infections.
“A week back the stock was commanding a premium of about Rs 25,30,” said Dinesh Gupta, Founder of Unlisted Zone, a platform that facilitates grey market trading. Grey market premium is considered a good indicator of demand for a stock and gives an idea of possible listing gain in an IPO.
NEW DELHI: Investors who bid for Rakesh Jhunjhunwala-backed Barbeque Nation’s shares during the book-building process of the IPO may be left with a bitter taste, as the grey market premium on the unlisted shares has plunged sharply as uncertainties in global markets has shaken confidence on Dalal Street.
Dealers active in the grey market, or the unofficial market for unlisted shares, said the premium on the stock has fallen to Rs 10-12 from Rs 40 a week back. That means the scrip is trading in the Rs 510-512 range.
“We are expecting a weak listing. Because of a spike in Covid cases, we are seeing lockdown fears. Mumbai has already gone under that,” said Dinesh Gupta, Founder of UnlistedZone, a platform that facilitates trading in unlisted shares.
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NEW DELHI: The domestic equity market has turned volatile as Dalal Street waits for half-a-dozen primary market offerings to hit the market this week.
IPO watchers say the Rakesh Jhunjhunwala-backed Nazara Technologies is likely to be the showstopper of the season, and that is exactly what the grey market is signaling at this point.
The premia on the unlisted shares trading in the grey market have plunged significantly for the other IPOs – Anupam Rasayan, Kalyan Jewellers, Laxmi Organics, Craftsman Automations and Suryoday Small Finance Bank.
But shares of the mobile gaming firm have been surging in the unofficial market, with the premium over the IPO price soaring as much as Rs 840-850 per share.
NEW DELHI: Sky s the limit! IPO investors of MTAR Technologies, which makes engines for India’s rocket programme, will hope for this maxim to come true on Monday as they will be eyeing a handsome listing gain. And, trends are in their favour.
Going by the demand in unofficial market for unlisted shares, also called grey market, the scrip is likely to list at a premium of around 84-86 per cent over the issue price. The stock will debut at 10 am on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) on March 15.
Abhay Doshi, a dealer of unlisted shares and founder of UnlistedArena, said the grey market premium (GMP) of MTAR Tech is stable at Rs 495. Similarly, another dealer, Dinesh Gupta of UnlistedZone said the GMP is in the range of Rs 485-490.