Home / Markets / Ipo /  Campus Activewear IPO: What GMP (grey market premium) signals about public issue

Campus Activewear IPO (Initial Public Offering) opened for subscription on Tuesday and after day one of bidding, the public issue worth 1400 crore has been subscribed 1.24 times whereas its retail portion has been subscribed 1.88 times. Taking cue from strong response to the public offer, grey market has gone further bullish on Campus Activewear IPO. According to market observers, Campus Activewear share price is trading at a premium of 100 in grey market today.

Campus Activewear IPO GMP

Market observers said that Campus Activewear IPO GMP (grey market premium) today is 100, which is 28 higher from its Tuesday's grey market premium of 72. They said that such a rise in Campus Activewear IPO GMP today can be attributed to the strong response to the public issue and trend reversal in the secondary market. They said that much will depend on the market sentiments as further upside momentum may further boost the grey market sentiment and bring some more moolah in the IPO.

What this Campus Activewear IPO GMP mean

According to market observers, Campus Activewear IPO GMP today is 100 that means grey market is expecting Campus Activewear IPO listing around 392 ( 292 + 100), which is around 35 per cent higher from the Campus Activewear IPO price band of 278 to 292.

However, stock market experts said that grey market premium is an unofficial data which has nothing to do with the financials of the company. One should decided upon investing in an IPO after going through the balance sheet of the company because it provides concrete fundamentals of the company.

Campus Activewear IPO: Buy or not?

Giving 'buy' tag to Campus Activewear IPO, Anand Rathi research report says, "We reckon operations in a fast-growing segment, a high and rising market share and strong financials are positives," adding, ""Revenue grew ~23% in FY20. The EBITDA and PAT margins ranged respectively from ~17% to 18% and ~7% to 9% over FY19-20. 9M FY22 revenue stood at 8.4bn and EBITDA margin was 19.4%.The RoE/RoCE were 21.9%/22.7%. FY21 net debt was 1bn."

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

Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout