Anand Rathi IPO: What GMP signals ahead of listing date

13 Dec , 2021 By : Kanchan Joshi

Shares of Anand Rathi Wealth are likely to list on BSE and NSE tomorrow. The public issue worth Rs660 crore got subscribed 9.78 times in 3-day bidding and share allocation was announced on 9th December 2021. While allottees are busy guessing about the listing gain from the public issue, grey market is also giving some signal in regard to Anand Rathi IPO listing price. According to market observers, shares of Anand Rathi Wealth are available at a premium of Rs50 in the grey market today.

Anand Rathi IPO GMP

As per the market observers, Anand Rathi IPO GMP today is Rs50, which is Rs10 lower from its yesterday's grey market premium (GMP) of Rs60 per equity share. They said that for the last 4-5 days, Anand Rathi IPO GMP has been oscillating around Rs50 after nosediving from Rs120 levels last week. They said that steady Anand Rathi IPO GMP can be attributed to the positive sentiment in the stock market during the weekend trade sessions.

What this GMP mean?

On what this GMP mean, market observers said that GMP is an unofficial data in regard to listing gain expected by the grey market. As Anand Rathi IPO GMP today is Rs50, it simply means that grey market is expecting Anand Rathi shares to list around Rs600 ( Rs550 Rs50), which is around 9 per cent higher from its price band of Rs530 to Rs550 per share.

However, stock market analysts are of the opinion that grey market is an unofficial data and it has nothing to do with the balance sheet of the company. They said that financials of Anand Rathi Wealth reflects strong outlook.

Highlighting the fundamentals that may support strong listing of Anand Rathi shares; Abhay Doshi, Founder at UnlistedArena.com said, “The wealth management market has a great scope in India but the competition too is stiff. Moreover, the performance of such companies is in sync to overall market’s performance which is somewhat cyclical in nature."

Abhay Doshi went on to add that Anand Rathi Wealth has posted exceptional growth in 5 months’ period ending August, 21 while the performance in last 3 fiscals looked steady. The valuations look fully priced as the issue is priced at 50x PE on the basis of performance of FY21.