30 Apr , 2022 By : Kanchan Joshi
Rainbow Children's Medicare IPO: Subscription for the public issue of Rainbow Children's Medicare ended on 29th April 2022 and now bidders and market observers are eagerly waiting for announcement of share allocation date, which is most likely on 5th May 2022. As per Rainbow Children's Medicare IPO subscription status, the public issue worth Rs1595 crore has been subscribed 12.43 times in 3 days bidding whereas its retail portion has been subscribed 1.38 times. Meanwhile, grey market is responding strongly in favour of the public offer. As per the market observers, shares of Rainbow Children's Medicare are available at a premium of Rs33 in grey market today.
Rainbow Children's Medicare IPO GMP
According to market observers, Rainbow Children's Medicare IPO grey market premium (GMP) today is Rs33, which is Rs7 higher from its Friday evening GMP of Rs26. According to market observers, rise in subscription status on last date of bidding could be a possible strong reason for such a huge jump in Rainbow Children's Medicare IPO GMP today. They went on to add that bidders responded strongly on last date of the public issue subscription date in such a weak secondary market. Hence, grey market was bound to respond positively and it did exactly what was expected by market observers. Market observers further added that much will depend on the market sentiment. If there is trend reversal on Dalal Street then there can be some more upside expected in Rainbow Children's Medicare share price in grey market.
What this GMP mean?
Market observers maintained that grey market premium means expected listing gain from the public issue. As Rainbow Children's Medicare IPO GMP today is Rs33, it means grey market is expecting Rainbow Children's Medicare IPO listing around Rs575 ( Rs542 Rs33), which is around 6 per cent higher from its price band of Rs516 to Rs542 per equity share.
However, stock market experts said that GMP is an unofficial and non-regulated data, which can't be relied blindly. They said that GMP has nothing to do with the financials of the company. Grey market even involves those people who have high stake involved in the public issue. So, the grey market data can be artificial. So, one should look at the balance sheet of the company that gives concrete picture of the public issues fundamentals.
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