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Home / Markets / Ipo /  HP Adhesives IPO: What GMP signals ahead of share listing
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HP Adhesives IPO listing date is fast approaching. As per the information available on BSE website, shares of HP Adhesives shall be listed and admitted to dealings on NSE and BSE in the list of 'T' Group of Securities on 27th December 2021. As it is less than two day for listing of HP Adhesives, grey market is also giving signals in regard to the HP Adhesives IPO listing gain. As per the market observers, shares of HP Adhesives are trading at a premium of 80 in the grey market today.

HP Adhesives IPO GMP

According to market observers, HP Adhesives IPO GMP today is 80, which is 15 higher from its yesterday's grey market premium of 65. Market observers went on to add that HP Adhesives share price has been able to maintain its premium in the grey market in around 60 to 90 for the last one week that reflects settling down of the company shares in the grey market. They said that recent positive sentiment in the primary markets has helped HP Adhesives shares to hold its ground in the grey market. They said that HP Adhesives IPO grey market premium in such range signals moderate listing of the public issue.

What this GMP mean?

Market observers said that GMP is nothing but expected listing gain from a particular public issue. As HP Adhesives IPO GMP today is 80, it means that grey market is expecting HP Adhesives IPO listing at around 354 ( 274 + 80), which is around 30 per cent higher from its upper price band of 274 per equity share.

However, stock market experts maintained that one should not rely much on GMP as it is an unofficial data, which is completely non-regulated. They said that it's balance sheet of the company that gives concrete picture of the company's financial health and hence, one should rely on the financials of the company instead of GMP.

Highlighting upon the fundamentals in regard to HP Adhesives IPO; Abhay Doshi, Founder at UnlistedArena.com said, "HP Adhesive is multi-product, multi-category consumer adhesives and sealants company. PVC Solvent is their largest product category. Their revenue from operations grew over by 23.75 per cent between FY20-21. The company has expansion plans but there is an intense competition from unorganized segment and its listed peer is in dominating position, aggregating over 65 per cent market share."

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

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