Aditya Birla AMC IPO: Aditya Birla Sun Life AMC public issue closed on 1st October 2021 and the Rs2769 crore worth IPO got subscribed 5.25 times on the closing day of its offer. And now, all eyes are now set on the share allotment date, which is likely to be on 6th October 2021. 

However, after tepid response from investors, Aditya Birla AMC GMP has nosedived. According to market observers, shares of Aditya Birla AMC today is Rs3 in the grey market, Rs17 lower from its yesterday's GMP. They said that such fall in Aditya Birla AMC IPO grey market price ahead of share allotment process indicates that grey market is expecting 'par listing' of the public issue on 11th October 2021.

Aditya Birla AMC IPO GMP

Market observers said that Aditya Birla AMC IPO grey market premium (GMP) today is Rs3, which is a huge dent in regard to the public issue sentiment in the grey market. They said that Aditya Birla AMC IPO GMP has nosedived from Rs70 to Rs3 in mere one week time, which is mainly due to the tepid response by the investors. They said that ahead of Aditya Birla AMC IPO subscription opening date, shares of Aditya Birla AMC were available at a premium of Rs70 in the grey market. But, after the weak response from bidders, it started giving sharp downside movement in the grey market. On why the public issue failed to get strong response from the bidders, market observers said that 100 per cent OFS (Offer for Sale) has probably not gone down well among the street investors.

What this GMP mean

Market observers said that GMP simply means expected premium from the IPO in grey market. As Aditya Birla AMC IPO GMP today is Rs3, it means Aditya Birla AMC IPO listing is expected around Rs715 ( Rs712 Rs 3) — which is at par with its price band of Rs695 to Rs712 per equity share.

However, stock market experts maintained that bidders should not get disturbed with the grey market numbers as it is unofficial data which has nothing to do with financials of the company. They said that it's financials of the company that matters most in success of failure of a public issue.

Speaking on the factors supporting Aditya Birla AMC IPO; Abhay Doshi, Founder at UnlistedArena.com said, "At the upper band of Rs712, the issue looks priced in-line with its listed peers. On the basis of FY21 earnings, the issue is asking a PE multiple of 39, which seems moderate leaving a little room for short-term investors. The long term prospect of the company tends to be impressive owing to huge under-penetration in capital markets."

Aditya Birla AMC IPO listing date is most likely on 11th October 2021.