Aditya Birla AMC IPO: GMP signals marginal gains on share listing date

Aditya Birla AMC IPO: Share allotment of Aditya Birla Sun Life (ABSL) IPO (Initial Public Offering) is announced and both lucky bidders and market observers are anxiously waiting for the listing date, which is likely on 1st October 2021. Aditya Birla AMC shares will be listed on both NSE and BSE. However, ahead of ABSL share listing date, bidders are keeping an eye on the grey market too. Aditya Birla AMC share are available today at a premium of ₹27 in the grey market. According to market observers, such Aditya Birla AMC IPO GMP reflects marginal listing gain from the public issue.

Aditya Birla AMC IPO GMP

According to market observers, Aditya Birla AMC IPO GMP today is ₹27, which is ₹10 up from its Friday's GMP of ₹17. Market observers went on to add that after the announcement of share allotment, Aditya Birla AMC IPO grey market premium has remained around ₹15 to ₹35 that reflects that grey market is expecting marginal listing gain from this public issue worth ₹2,768.26 crore. They said that Aditya Birla AMC IPO grey market price settling down around ₹15 to ₹35 is an indication that grey market is expecting single digit gain from this IPO, which is a good sign for lucky bidders considering 100 OFS (Offer for Sale) of this IPO.

What this GMP mean

Market observers went on to add that GMP is nothing but an unofficial data in regard to expected listing gain from the public issue. As Aditya Birla AMC IPO GMP today is ₹27 that means grey market is expecting a premium gain of ₹27 from this public issue. Means it is expecting Aditya Birla AMC IPO listing at around ₹739 ( ₹712 + ₹27) — around 4 per cent higher from the price band of ₹695 to ₹712 per equity share.

However, market observers went on to add that GMP should not be the criteria to make any decision in regard to success or failure of a public issue. They advised bidders to have a look at the financials of the company.

Speaking on what balance sheet of Aditya Birla Sun Life AMC speaks; Abhay Doshi, Founder at UnlistedArena.com said, "At the upper band of ₹712, the issue looks priced in-line with its listed peers. On the basis of FY21 earnings, the issue is asking a PE multiple of 39, which seems moderate leaving a little room for short-term investors. The long term prospect of the company tends to be impressive owing to huge under-penetration in capital markets but at the same time, there are many alternatives present to play this theme."

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