12 Aug , 2021 By : Kanchan Joshi
Devyani International IPO allotment is out and now all eyes are fixed on the share listing date i.e. 16th August 2021. After robust 116.70 times subscription, bidders of the public issue are busy calculating about the possible gains as the market mood is highly bullish. In fact, grey marker has also stated hinting about the possible listing of the public issue. According to the market observers, Devyani International IPO GMP today is Rs51 that means grey market is expecting near 56 per cent listing gain from the public issue.
Devyani International IPO: Grey market conviction
Market observers went on to add that Devyani International IPO grey market premium has been steady at Rs51 for the last three days. That means, Devyani International shares are getting stablised in the grey market. They said that after opening of the public issue for bidding, it has maintained premium of around Rs50 to Rs55 in grey market that reflects strong conviction of the grey market in regard to this particular public issue.
What this GMP mean?
Market observers went on to add that grey market premium is an indication about the expected listing gain from a particular public issue. In the case of Devyani International IPO, its grey market today is Rs51 that means market is expecting Devyani International IPO listing around Rs141 ( Rs90 Rs51). Since, Devyani International IPO grey market premium has been oscillating around Rs50 to Rs55, one can make a conclusion that grey market is signaling strong 55 per cent to 60 per cent listing gain from this public issue.
Speaking on the possible limitation in strong listing of Devyani International IPO; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Issues offered through OFS is around 76 per cent. This means, out of Rs1,838 crore raised through this IPO, only 34 per cent of this money will go to the company. Rest 76 per cent will go into the pockets of the promoters. This may affect institutions and their investment post-listing."
Speaking on the fundamentals that may lead to strong listing of Devyani International IPO; Astha Jain, Research Analyst at Hem Securities said, "Company is bringing the issue at price band of Rs933-954 per share at EV/EBIDTA multiple of 34. We like Unique and scaled business model of company. Company with its strong brand equity has extensive footprint across India with robust infrastructure. With robust revenue visibility, company is well positioned to capitalize on healthcare spending across public and private sectors."
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