Divgi TorqTransfer Systems IPO: What GMP signals after closure of subscription?
Divgi TorqTransfer Systems IPO: Three day subscription for the Initial Public Offering (IPO) of Divgi TorqTransfer Systems Ltd ended on Friday. Those who have applied for the public issue worth ₹412.12 crore are now eagerly waiting for Divgi TorqTransfer Systems IPO allotment date, which is most likely on 9th March 2022. In three days of bidding, the public offer got subscribed 5.44 times whereas its retail portion got subscribed 4.31 times. As per the market observers, shares of Divgi TorqTransfer Systems Ltd are available at a premium of ₹72 in grey market today.
Divgi TorqTransfer Systems IPO GMP today
Market observers said that Divgi TorqTransfer Systems IPO GMP (grey market premium) today is ₹72, which is ₹2 higher from Divgi TorqTransfer Systems IPO GMP of ₹70 on Friday. They said that rise in GMP can be attributed to trend reversal on Dalal Street. Indian secondary market witnessed stellar rise on Friday as most of the key benchmark indices witnessed buying interest on the weekend trade. Observers said that Divgi TorqTransfer Systems IPO GMP has remained in positive direction even when the market sentiments were tepid. So, we can expected big upside if the trend continues to remain positive on Monday.
What this GMP mean?
Market observers said that Divgi TorqTransfer Systems IPO GMP today is ₹72, which means grey market is expecting that Divgi TorqTransfer Systems shares will list around ₹662 ( ₹590 + ₹72), which is around 12 per cent higher from Divgi TorqTransfer Systems IPO price band of ₹560 to ₹590 per equity share.
However, stock market observers maintained that grey market is not an ideal indicator that one could rely so heavily. They advised investors to stick with their conviction they have made after scanning the balance sheet of the company before applying for the IPO. They said that GMP is non-regulated and completely speculative that keeps on changing on day by day. So, it is fundamentals that matters not grey market sentiment.
Divgi TorqTransfer Systems IPO subscription status
After three days of bidding, Divgi TorqTransfer Systems IPO got subscribed 5.44 times whereas it was subscribed 4.31 times in retail category while NII and QIB portion got subscribed 1.40 times and 7.83 times respectively.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.