The Rs 1,170-crore initial public providing (IPO) of Indigo Paints saw a robust response from investors from all corners, acquiring 116 instances subscription so far on the final day of bidding. Data accessible on the bourses showed that investors bid for 64 crore equity shares against 55.18 equity shares that have been on present. Indigo Paints was the second IPO of 2021 following IRFC. Non-institutional investors (NII) have, so far, subscribed the problem most, submitting bids 262 instances their portion followed by Qualified Institutional Buyers (QIB) who have subscribed their quota 188 instances and then Retail Investors with bids for 15.72 instances their portion.
Grey market place premium nonetheless powerful
The IPO closes today and is anticipated to be listed just a day following the Union Budget. Currently, even even though Sensex and Nifty closed with losses for two consecutive days, Indigo Paints has been commanding a powerful grey market place premium. “Today the grey market premium of Indigo Paints is around Rs 850 per share,” Umesh Paliwal, Co-founder of UnlistedZone told TheSpuzz Online. Despite the volatile movement in Sensex, which saw the benchmark index sale 50,000 and then fall drastically for two consecutive sessions, Paliwal says, the grey market place premium remains powerful.
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Listing expectations & tactic
“Listing of Indigo Paints is expected to be good, at least around 20-25% on the upside,” mentioned Vishal Wagh, Head of Research, Bonanza Portfolio. Shares of the firm are anticipated to list just a day following the Union Budget, but Wagh does not see this to be a hindrance for the stock. On the other hand, Paliwal says he expects a healthier listing but does caution investors to retain an eye on any adverse announcement for stock markets in the Union Budget.
Talking tactic for the listing day, Vishal Wagh advises investors who will be allotted the shares, to book earnings. “Profit booking is always a good strategy for IPOs, investors can rebuy it if the stock holds above listing price for a month,” he added.
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