21 Aug , 2021 By : Kanchan Joshi
Nuvoco Vistas IPO GMP: After trading at Rs5 premium in the grey market from Monday to Thursday, Nuvoco Vistas IPO grey market premium (GMP) has gone in the negative zone today. Nuvoco Vistas IPO GMP today is minus Rs10. According to market observers, Nuvoco Vistas grey market price going in the negative zone is an indication that the public issue may have unattractive and tepid listing if the market mood continues to remain choppy on Monday — Nuvoco Vistas IPO listing date.
Nuvoco Vistas grey market premium
According to market observers, Nuvoco Vistas IPO GMP on Friday was Rs2 — Rs3 down from its Monday to Thursday GMP of Rs5. So, Nuvoco Vistas GMP today going in the negative zone reflects a par listing or listing at discounted price. The market observers said that this slide in Nuvoco Vistas IPO GMP should be attributed to the negative to sideways mood of the market as well. If the market opens on the higher side, we can expect a tepid listing rather listing at discounted price.
What this GMP mean
Market observers went on to add that grey market p0remium is an un-official indication about the listing gain expected by the grey market. Nuvoco Vistas IPO GMP today at minus Rs10 means grey market is expecting listing of Nuvoco Vistas shares at Rs560 ( Rs570 - Rs10) — means shares may list at Rs10 discount on Monday.
Speaking on the expected listing of Nuvoco Vistas shares; Abhay Doshi, Founder at UnlistedArena.com said, "As the primary market gears up for listing phase, most of the IPOs are facing half-hearted listing led by correction in broader market and due to expensive valuations of IPOs. Nuvoco Vistas too may not be spared from such trend as this issue too was expensively priced at 17x EV/EBITDA. The listing may not be a fancy and even discount listing also cannot be ruled out."
Suggesting bidders to look at the fundamentals of Nuvoco Vistas instead of grey market premium; Astha Jain, Research Analyst at Hem Securities said, "Company is bringing the issue at price band of Rs560-570 per share at post issue EV/EBIDTA multiple of 16 on FY21 EBIDTA basis. Company being largest cement manufacturing company in East India in terms of total capacity with market-leading brands and experienced individual promoter and professional management team has strong future potential."
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