Azad Engineering IPO: What GMP signals after announcement of allotment status as focus shifts to listing date

As per market experts, the public issue received strong response from investors and hence allottees can expect strong listing gains on their investment. In fact, the grey market is also signaling strong debut of Azad Engineering shares on Dalal Street. 

According to stock market observers, shares of Azad Engineering Limited are available at a premium of ₹301, which is 57 percent higher compared to the IPO price.

Market observers said that Azad Engineering IPO grey market premium (GMP) today is ₹301, which is unchanged from yesterday. Observers said that strong response by investors and positive stock market sentiment could be the possible reasons for steady grey market price.

What does this GMP mean?

The IPO GMP today at ₹301 means the grey market is expecting that Azad Engineering listing price would be around ₹825, 57 percent higher than the issue price of ₹524 per equity share.

However, stock market experts maintained that grey market is not an ideal indicator about assessing the possible listing premium from a public issue. They said that GMP is completely speculative as it has no connect with financials of the company and it is completely non regulated. Sometimes, GMP of a public issue are found artificial as well because it involves even those who have high stake involved in the public offer.

Those who have applied for the public issue can check their application status online by logging in at the BSE website or at the official registrar’s website. KFin Technologies has been appointed as official registrar of the bookbuild issue. An applicant can login at direct BSE link — bseindia.com/investors/appli_check.aspx or at direct KFin Tech link — kprism.kfintech.com/ipostatus and check Azad Engineering IPO allotment status online.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Published: 27 Dec 2023, 10:58 AM IST