06 Sep , 2021 By : Kanchan Joshi
Ami Organics and Vijaya Diagnostic's three-day public issues closed on September 3 and all eyes are now set on the share allotment dates of the two which is expected to be on 8 September. Ami Organics IPO got subscribed 64.54 times while Vijaya Diagnostics initial public offer got subscribed 4.54 times. After strong response from the bidders, Ami Organics IPO GMP is once again gaining momentum while grey market's response to Vijaya Diagnostic continues to remain dull.
Ami Organics IPO GMP today is Rs166 — Rs41 up from yesterday's grey market premium of Rs125. However, Vijaya Diagnostic IPO GMP today is Rs1 to Rs2 — further down from its yesterday's grey market premium of Rs5.
According to market observers, Ami Organics IPO GMP had shot up from Rs50 to Rs125 just one day ahead of the public issue opening and went on to scale up to Rs160 levels. However, after the closure of Ami Organics IPO subscription, its GMP came down towards Rs125 to Rs110. So, Ami Organics share price gaining momentum in the grey market before the share allotment date and regaining Rs150 plus levels must have boosted the morale of those who bid for the public issue, they added.
On the other hand, Vijaya Diagnostic IPO has been receiving dull response ever since it became available for trade in the grey market. Vijaya Diagnostic share price has been nosediving in the grey market and it has come down from a premium of Rs40 to Rs1-2. Market observers believe that higher valuations and 100 per cent OFS (Offer for Sale) may go against Vijaya Diagnostic IPO.
What these GMPs mean
Market observers went on to add that grey market premium of a public issue is an indication about the expected gains from the initial offer. Since, Ami Organics IPO GMP today is Rs163, it indicates that grey market is expecting Ami Organics share listing at around rs773 ( Rs610 Rs163) — near 26 per cent higher from its price band of Rs603 to Rs610 per equity share.
Similarly, Vijaya Diagnostic IPO GMP today is Rs1 to Rs2 that means grey market is expecting Vijaya Disgnostic share listing at Rs532 to Rs533 — indicating par listing for the public issue.
Speaking on Ami Organics vs Vijaya Diagnostic IPOs; Abhay Doshi, Founder at UnlistedArena.com said, "Valuations will play a big role. 100 per cent OFS and valuation on higher side seems working as turned down sentiments for Vijaya Diagnostics. Between the two issues, Ami Organics looks clear winner due to moderate valuation and buzzing chemical space."
0 Comment