Elin Electronics IPO: What GMP signals as public issue opens soon

As the public issue is going to hit primary markets on Tuesday this week, shares of the company have become available in grey market. According to market observers, Elin Electronics shares are available at a premium of ₹47 in grey market today.

Elin Electronics IPO GMP today

As per the market observers, Elin Electronics IPO grey market premium (GMP) today is ₹47, which is ₹7 higher from its weekend GMP of ₹40. So, the grey market sentiments have gone further northward despite weak sentiments on Dalal Street. They said that much will depend upon the Dalal Street sentiments and the kind of response this public issue receives from the investors. However, they maintained that GMP of ₹47 is a good sign as the premium signaled by the grey market is around 19 per cent higher from its price band of ₹234 to ₹247 per equity share.

What this GMP means?

Market observers said that Elin Electronics IPO GMP today is ₹47, which means grey market is expecting that Elin Electronics IPO listing price would be around ₹294 ( ₹247 + ₹47), which is around 19 per cent higher from Elin Electronics IPO price band of ₹234 to ₹247 per equity share. They said that ahead of Elin Electronics IPO subscription date, grey market is signaling strong listing premium for lucky allottees.

However, stock market experts maintained that GMNP should not be taken seriously as it is a non-regulated completely speculative number. They advised allottees to stick with the basics and scan balance sheet of the company as it would reflect concrete fundamental picture of the company in long term.

Elin Electronics IPO details

Price band of the IPO has been fixed at ₹234 to ₹247 and finalisation of share allocation is expected on 27th December 2022. The public issue is proposed for listing on BSE and NSE and probable listing date for the IPO is 30th December 2022.

Elin Electronics IPO review

Giving ‘subscribe’ tag to Elin Electronics IPO, topsharebrokers.com report says, “The Issuer manufactures and assembles a wide array of products and provides end-to-end product solutions. It is associated with branded clients. The topline of the Issuer is growing consistently. Valuations are cheaper when compared to the peers, however considering it’s scale of operations and business model, valuations appear to be reasonable and fair. However, it should also be considered that promoter shareholding reduces to 32% from 54%. Considering all these factors, one shall subscribe to the issue.”

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 decisions.