Tega Industries IPO: 3-day subscription for the public issue worth Rs619 crore ended yesterday attracting bids to the tune of 219.04 times of its offer. The issue got subscribed 29.44 times in the retail category, 215.45 times in the QIB category and 666.19 times in the NII category. Seeing this robust Tega Industries IPO subscription status, both grey market and its observers have gone highly bullish on the public offer. Shares of Tega Industries are available at a premium of Rs425 in grey market today.

Tega Industries IPO GMP

As per the market observers, Tega Industries IPO grey market premium (GMP) today is Rs425, which is Rs5 higher from its yesterday's GMP of Rs420. They said that rising GMP and strong subscription status is because of the reasonable pricing and growth prospect of the company. They said that Tega Industries IPO GMP has been rising continuously despite high volatility in the stock market, which is expected to reflect strongly on its listing date, which is likely on 13th December 2021.

Market observers went on to add that resonable valuation of the public issue has helped Tega Industries shares to maintain its uptrend in grey market. Apart from this, strong response from bidders, which is visible in Tega Industries IPO subscription status, has also helped grey market to maintain the bullish trend on the public issue.

What this GMP mean?

Market observers said that grey market premium is an estimated listing gain by the grey market in regard to an IPO. As Tega Industries IPO GMP today is Rs425, it simply means that the grey market is expecting that Tega Industries IPO listing may take place around Rs878 ( Rs453  Rs425), which is around 93 per cent higher from the price band of Rs443 to Rs453 per equity share.

However, stock market observers said that grey market premium is an unofficial data and it has nothing to do with balance sheet of the company. They said that it is fundamentals and valuation of a company that tells whether a public issue is strong or weak.

Tega Industries IPO apply or not?

On what this Tega Industries IPO subscription status indicates; Abhay Doshi, Founder at UnlistedArena.com said, "Market is very selective with respect to the IPOs and the funds are flowing to those issues which provide better opportunity. Tega Industries IPO got a decent response owing to reasonable pricing and growth prospects. Therefore, Tega seems to be a candidate for strong listing gains."

Tega Industries IPO details

Tega Industries share allotment is expected on 8th December 2021 whereas listing of shares is expected on 13th December 2021.