09 Nov , 2021 By : Kanchan Joshi
Nykaa IPO GMP: After announcement of share allotment of the public issue worth Rs5,351.92 crore, all eyes are not set on the Nykaa IPO share listing date, which is expected on 11th November 2021. However, ahead of share listing date, grey market has gone highly bullish on the initial public offering. According to market observers, shares of Nykaa are available at a premium of Rs765 in the grey market today. They said that Nykaa IPO grey market premium (GMP) has been rising for the last one week and this trend has continued after the announcement of share allotment as well.
Nykaa IPO GMP
According to market observers, Nykaa IPO GMP today is Rs765, which is Rs35 higher from its yesterday's grey market premium of Rs730. They said that Nykaa IPO grey market premium (GMP) was around Rs590 to Rs630 last week that further went up to the tune of Rs765 after the finalisation of Nykaa share allotment. They said that rising GMP of the public issue is a good sign and it reflects strong listing of Nykaa shares on its listing date.
What this Nykaa GMP means
Nykaa GMP today at Rs765 simply means that grey market is expecting share listing at around Rs1890 ( Rs1125 765), which is around 68 per cent higher from Nykaa IPO price band of Rs1085 to Rs1125. Market observers went on to add that generally GMP goes down after the announcement of share allotment but in the case of Nykaa IPO, GMP has gone further up by Rs35. They predicted strong listing premium for the lucky bidders provided the market sentiment continues to remain positive on the listing date as well.
Highlighting the fundamentals of Nykaa IPO; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the TTM (Jun 2021) adjusted EPS (Earnings Per Share) of Rs2.54 on the post-issue basis, the company is going to list at a P/E of 443.46 with a market cap of Rs5,32,040 million. 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 lifestyle-focused consumer technology platforms and a preferred destination for luxury and prestige products in India for consumers and brands. However, valuations on an absolute basis based on past financials keep us cautious at the same time."
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