The grey market premium (GMP) may act as an indication about the share price of initial public offering (IPO) when it gets listed. This has many factors in play. Last week, there were four IPOs that were available for subscription and that was Shyam Metalics, Dodla Dairy, Krishna Institute of Medical Sciences, and Sona Comstar.
Kolkata-based Shyam Metalics and Energy Ltd is one of the leading integrated metal producing companies. The issue opened on Monday (June 14) and closed on June 16. The grey market premium of Shyam Metalics is around Rs 130-135 per share, around 49 per cent above the price band. The price band of the issue is Rs 303-Rs 306 apiece. So, listing price may be around Rs 433-Rs 441 per share.
In the case of Sona Comstar, its grey market premium is around Rs 3-5. This company via IPO is trying to raise Rs 2,498 crore, 45 per cent of the total IPO size of Rs 5,550 crore. It opened for subscription on June 14 and closed on June 16. The price band of the IPO was Rs 285-Rs 291 per share.
Dodla Dairy IPO was open for subscription from June 16 and closed on June 18. The company has fixed the issue price band at Rs 421-428 per share. The grey market premium of this dairy company is around Rs 85 per share, according to IPOwatch.
Krishna Institute of Medical Sciences is a Hyderabad-based company that operates multi-specialty hospitals in Telangana and Andhra Pradesh. The price band of this IPO is Rs 815-Rs 825 per equity share. In the grey market, it is priced at Rs 30, which means when it gets listed in the market, the shares may be around Rs 845-Rs 855 per share.