13 Nov , 2021 By : Kanchan Joshi
As Sigachi Industries IPO (Initial Public Offering) listing date (15th November 2021) is fast approaching, lucky bidders and market observers are busy guessing about the expected listing gain from the public issue worth Rs125.43 crore. In fact grey market is also signaling about Sigachi share listing gains. As per the market observers, shares of Sigachi Industries are trading at a premium of Rs230 in the grey market today that reflects strong listing of the public issue.
Sigachi IPO GMP
Ahead of Sigachi IPO listing date, grey market has gone highly bullish over the public issue. According to market observers, Sigachi IPO GMP (grey market premium) today is Rs230 and has remained unchanged for last two days. Observers said that after the announcement of Sigachi share allotment, Sigachi Industries IPO has been standing at Rs230, which is a good sign from an investor's perspective. They said that after dipping ahead of share allotment process, the public issue has regained its lost ground in the grey market.
What this GMP mean?
Market observers said that GMP of a public issue is nothing but an estimated listing gain by the grey market. As Sigachi IPO GMP today is Rs230, it simply means that grey market is expecting that the public issue would list at around Rs393 ( Rs163 and Rs230), which is around 140 per cent higher from its price band of Rs161 to Rs163 per equity share.
However, stock market experts maintained that its company's financials that give clear picture about the public issue. They said that grey market premium is an unofficial data and one should not rely on it too much.
Speaking on the financials of Sigachi Industries; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 adjusted EPS of Rs10.80 on the post-issue basis, the company is going to list at a P/E of 15.10 with a market cap of Rs5,011 mn. There are no listed companies in India whose business is comparable with that of the company’s business. The company is one of the leading manufacturers of MCC (Microcrystalline Cellulose) in India with a presence across diverse industry verticals and is available at reasonable valuation on an absolute basis."
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