Bikaji Foods IPO: What GMP (grey market premium) signals after share allotment

Market


Bikaji Foods IPO GMP: After finalisation of share allotment, all eyes are now set on Bikaji Foods IPO listing date date, which is most likely on 16th November 2022. Bikaji Foods IPO allotment status was announced yesterday and bidders of the public issue can check their application status online by logging in at the BSE website on on the official registrar of the IPO. Link Intime India Private Ltd has been appointed as official registrar of Bikaji Foods IPO. Meanwhile, share of Bikaji Foods International Ltd are available at a premium of 40 per equity share in grey market today. 

Bikaji Foods IPO GMP today 

Market observers said that Bikaji Foods IPO grey market premium (GMP) today is 40, which is 5 higher from its Friday GMP of 35. They said that Bikaji Foods IPO GMP has surged from around 15 to 40 in last four days, which can be attributed mainly to the trend reversal on Dalal Street. Indian stocks bouced back strong on Friday after losing on three straight sessions (Tuesday, Wednesday and Thursday). Strong response and subscription status is playing its role among the grey market players. 

What this GMP means? 

Market observers went on to add that Bikaji Foods IPO GMP today is 40, which means grey market is expecting that Bikaji Foods IPO listing would take place around 340 ( 300 + 40), which is around 13 per cent higher from its price band of 285 to 300 apiece. They went on to add that current grey market premium is a signal that Bikaji Foods shares may have a ‘moderate’ debut on Dalal Street.

However, stock market observers maintained that grey market premium is completely speculative number and its has no connect with company’s fundamentals. They said that GMP is non-regulated as well. So, one should not rely heavily on GMP only. One needs to scan the balance sheet of the company as it gives concrete picture of the company’s fundamentals. 

Bikaji Foods IPO subscription status 

After three days of bidding from 3rd to 7th November 2022, Bikaji Foods IPO was subscribed 26.67 times whereas its retail portion got subscribed 4.77 times. However, QIB portion of the public issue received strong response from the bidders as it got subscribed 80.63 times.

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