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Home / Markets / Ipo /  CMS Info systems IPO: What GMP signals as all eyes set on share allotment
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CMS Info systems IPO: After closure of subscription on 23rd December 2021, all eyes are now set on the CMS Info systems IPO allotment date, which is most likely on 28th December 2021. As per the CMS Info systems IPO subscription status, the public issue was subscribed 1.95 times whereas its retail portion was subscribed 2.15 times. Ahead of finalisation of share allocation, grey market is signaling tepid debut for India's cash management company stocks. As per the market observers, shares of CMS Info systems are available at a premium of 9 in the grey market today.

CMS Info systems IPO GMP

Market observers said that CMS Info systems IPO GMP today is 9, which is 4 higher from its yesterday's grey market premium (GMP) of 5. They said that the public issue received tepid response from investors as 100 per cent OFS worked as a hurdle in attracting bidders. They went on to add that CMS Info Systems IPO GMP has been oscillating around 5 to 12 after the closure of bidding that signals neutral to marginal listing of company shares.

What this GMP mean?

Market observers went on to add that GMP is nothing but an indication about the expected premium from a public issue. As CMS Info systems IPO GMP today is 9, it simply means that grey market is expecting CMS Info systems share listing at around 225 ( 216 + 9), which is around 5 per cent higher from its price band of 205 to 216 per equity share.

However, stock market experts are of the opinion that it is financials of the company that gives concrete picture of the company. GMP has nothing to do with company's financials and hence it should not be taken seriously.

Highlighting the fundamentals in regard to CMS Info Systems; Ankur Saraswat Research Analyst at Trustline Securities said, "Pledging of an entire promoter stake, lack of experience of promoters, entire dependence on banking sector, limited customers and operating in highly regulated and controlled environment with intense competition are the few serious concerns. Therefore, there are subdued sentiments over this public issue."

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

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