BackPrudent Corporate IPO: What GMP signals as subscription ends today
Prudent Corporate IPO GMP today is ₹25, which is ₹5 lower from its yesterday's evening grey market premium of ₹30, say market observers
PremiumPrudent Corporate IPO: The Initial Public Offering (IPO) of the retail public wealth management service group opened for subscription on 10th May 2022 and it will remain open for bidding till 12th May 2022. This means today is the last day to apply for the public issue worth ₹538.61 crore. Meanwhile, After two days of bidding, Prudent Corporate IPO subscription status suggests that the public offer has been subscribed 0.57 times whereas its retail portion has been subscribed 1.05 times. Meanwhile Prudent IPO GMP (grey market premium) has tumbled following weak stock market sentiments. According to market observers, Prudent Corporate share price is quoting at a premium of ₹25.
Prudent Corporate IPO GMP today
Market observers said that Prudent Corporate IPO GMP today is ₹25, which is ₹5 lower from its yesterday's evening grey market premium of ₹30. They said that Prudent Corporate IPO grey market price has tumbled due to negative secondary market sentiment. They said that Prudent Corporate share price has fallen from a premium of ₹40 to ₹25 in just two days. They said that yesterday morning, Prudent Corporate IPO GMP had shown some sign of recovery when it surged from ₹30 to ₹35 but finally it failed to sustain that gain after sell-off trigger in secondary market.
What this Prudent Corporate IPO GMP mean?
market observers said that Prudent Corporate IPO GMP today is ₹25, which means grey market is expecting that Prudent Corporate IPO listing may take place around ₹655 ( ₹630 + ₹25), which is almost at par with Prudent Corporate IPO price band of ₹595 to ₹630 per equity share.
So, on last date of bidding, grey market is trying to indicate that signal that Prudent Corporate IPO may have a moderate to par listing.
However, stock market experts said that grey market premium is an unofficial date, which is completely non-regulated. It has no link with the financials of the company. So, a bidder need not to take GMP that much seriously. They said that it's balance sheet of the company that gives ideal picture of the company's financial health. They asked investors to look at the balance sheet of Prudent Corporate Ltd and then only decide about the investment in upcoming public issue.
Advising investors to subscribe for long term, Shruti Khandare, CMO at MyFundBazaar India said, "Prudent Corporate IPO provides retail wealth management services pan India with a strong revenue growth in the last 3-9 months, margins having improved from 9.3% to 17.5%. Furthermore, the IPO has diversified their portfolio into MF distributors', business, insurance services & stock broking services. High-risk investors can invest in this IPO from a medium to long term perspective. The investor may or may not get listing gains considering the bearish market at the moment."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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