02 Dec , 2021 By : Kanchan Joshi
Tega Industries IPO opened for subscription yesterday and it will remain open for bidding till 3rd December 2021. After first days of subscription, the public issue worth Rs619 crore got subscribed 4.67 times of its offer. The public offer got subscribed 7.51 times in the retail category, 0.07 times in the QIB category and 4.17 times in the NII category. After this robust response from investors, grey market also became bullish over the public issue. As per the market observers, shares of Tega Industries are trading at a premium of Rs410 in the grey market today.
Tega Industries IPO GMP
According to market observers, Tega Industries IPO grey market premium (GMP) today is Rs410, which is Rs25 higher from its yesterday's GMP of Rs385. According to market observers, this rise in Tega Industries IPO GMP should be attributed to the strong response by the investors. They said that the rise in grey market price of the public issue was aided by the trend reversal in the stock market as well. They expected that Tega Industries IPO subscription status would further pick up as there are two more days left for bidding.
What this GMP mean?
Market observers went on to add that GMP reflects about the listing gain expected by the grey market. As Tega Industries IPO GMP today is Rs410, it means grey market is expecting Tega Industries IPO listing at around Rs863 ( Rs453 Rs410), which is more than 90 per cent from its price band of Rs443 to Rs453 per equity share.
However, stock analysts suggested bidders and investors to look at the financials of the company as grey market is an unofficial data that keeps on changing. They said that it's company's balance sheet that reflects exact financial status of the company.
Tega Industries IPO subscribe or not?
Giving 'must buy' tag to Tega Industries IPO; Ravi Singhal, Vice Chairman at GCL Securities said, "It is a must buy public issue as both financials and company's valuations are looking attractive."
Asking bidders to subscribe Tega Industries IPO for long term; Ravi Singh, Head of Research & Vice President at ShareIndia said, "There is a significant scope for new mining capacities and considerable opportunities for future discoveries of sub-surface deposits of metals in India. India’s mineral production of most of the important minerals is also showing positive growth during 2021. Since Tega Industries deals in manufacturer of consumables concerning the mining industry, investors may include this IPO in their portfolio for long term gains.
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