Bikaji Foods IPO: What GMP signals ahead of subscription opening date
1 min read . Updated: 01 Nov 2022, 08:48 AM IST
Premium- Bikaji Foods IPO GMP today is ₹81, say market observers
Bikaji Foods IPO: The public issue worth ₹881.22 crore is going to hit primary markets on 3rd November and it will remain open for subscription till 7th November 2022. The promoters of the company has fixed Bikaji Foods IPO price band at ₹285 to ₹300 per equity share and one lot of the IP will comprise 50 company shares. Ahead of subscription opening, shares of Bikaji Foods International Limited are available for trade in grey market. According to market observers, shares of Bikaji Foods are available at a premium of ₹81 per share.
Bikaji Foods IPO GMP today
As per the market observers, Bikaji Foods IPO GMP (grey market premium) today is ₹81, which is praiseworthy as there are still two full days left for opening of the public issue. They said that such a high premium in grey market can be attributed to the bullish sentiments on Dalal Street as the secondary market has been closing higher for last three successive days. However, they maintained that Dalal Street sentiments are interlinked with the grey market and primary market. So, positive sentiments on Dalal Street is expected to boost investors' confidence when it opens on 3rd November 2022.
What this GMP mean
Market observers maintained that Bikaji Foods IPO GMP today is ₹81 that means grey market is expecting that Bikaji Foods IPO listing would take place around ₹381 ( ₹300 + ₹81), which is around 27 per cent higher from its price band of ₹285 to ₹300 per equity share. In other words, grey market is expecting around 27 per cent listing premium from the IPO, which is going to open on 3rd November 2022.
However, stock market experts maintained that grey market is not an ideal indicator about the success or failure of an IPO and one should not take these grey market numbers seriously. They said that GMP is completely artificial as it has no connect with company's balance sheet. They advised investors to go through the financials of the company as there is still two full days left for opening of its subscription.
