GMP jumps ahead of subscription opening date

Tega Industries IPO GMP

According to market observers, Tega Industries IPO GMP today is ₹378, which is ₹6 higher from its yesterday’s grey market premium (GMP) of ₹372. They said that Tega Industries IPO GMP on Monday surged from ₹250 to ₹372 and today it has managed to sustain at that level, which augurs well for the public issue. They said that it may reflect in strong response from the bidders when the issue opens on Wednesday. They said that shares of Tega Industries become available for trade in grey market last week at a premium of around ₹180 and in just one week, it has surged to ₹378, which indicates highly bullish mood of the grey market in regard to Tega Industries IPO.

What this GMP mean?

Market observers said that GMP is an indication that how much listing gain grey market is expecting from the public issue. However, they maintained that it keeps on changing like a listed share and its data is completely unofficial. As Tega Industries IPO GMP today is ₹378, it means grey market is expecting Tega Indusries IPO listing at around ₹831 ( ₹453 + 378), which is more than 80 per cent from its price band of ₹443 to ₹453 per equity share.

Speaking on Tega Industries IPO; Avinash Gorakshkar, Head of Research at Profitmart securities said, “IPO investors should continue to monitor how new Covid variant impacts the Indian and global markets. Markets are highly volatile and if NSE Nifty goes below 17,000 levels, then the public issue will have open for subscription in a bear-hit market. In that case, 100 per cent OFS of the public issue might play a hurdle.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.