Tega Industries IPO: What GMP reflects on last date of subscription2 min read . Updated: 03 Dec 2021, 07:43 AM IST
- Tega Industries IPO GMP today is ₹420, which is ₹10 higher from its yesterday's grey market premium of ₹410, say market observers
Listen to this article
Tega Industries IPO: The 3-day subscription of Tega Industries Initial Public Offering (IPO) is ending today. The public issue worth ₹619 crore has been subscribed 13.87 times in first two days of subscription. The public offer got subscribed 17.04 times in the retail category, 3.35 times in QIB category and 20.48 times in NII category. After the strong response from investors, grey market is also signaling strongly in favour of Tega Industries IPO. As per the market observers, Tega Industries shares are available at a premium of ₹420 in the grey market today.
Tega Industries IPO GMP
According to market observers, Tega Industries IPO grey market premium (GMP) today is ₹420, which is ₹10 higher from its yesterday's grey market premium of ₹410. Market observers said that the rise can be attributed to two major reasons — strong response from investors and stock market uptrend. They said that rise in the stock markets have helped Tega Industries shares to maintain its uptrend in grey market. Apart from this, strong response from bidders, which is visible in Tega Industries IPO subscription status, has also helped grey market to maintain the bullish trend on the public issue. They expected sharp rise in Tega Industries IPO subscription status today as those who are in wait and watch would also apply for the IPO on last date of subscription.
What this GMP mean
Market observers said that grey market premium is an estimated listing gain by the grey market in regard to an IPO. As Tega Industries IPO GMP today is ₹420, it simply means that the grey market is expecting that Tega Industries IPO listing may take place around ₹873 ( ₹453 + ₹420), which is around 90 per cent higher from the price band of ₹443 to ₹453 per equity share.
However, stock market observers advised bidders to look at the financials of the company instead of its grey market performance. They said that grey market premium is an unofficial data and it has nothing to do with balance sheet of the company. They said that it is fundamentals and valuation of a company that tells whether a public issue is strong or weak.
Tega Industries IPO apply or not?
Advising IPO investors to subscribe Tega Industries IPO; Ravi Singhal, Vice Chairman at GCL Securities said, "It is a must buy public issue as both financials and company's valuations are looking attractive."
Giving 'subscribe' tag to Tega Industries IPO; Ravi Singh, Head of Research & Vice President at ShareIndia said, "There is a significant scope for new mining capacities and considerable opportunities for future discoveries of sub-surface deposits of metals in India. India’s mineral production of most of the important minerals is also showing positive growth during 2021. Since Tega Industries deals in manufacturer of consumables concerning the mining industry, investors may include this IPO in their portfolio for long term gains."
Tega Industries IPO details
Tega Industries share allotment is expected on 8th December 2021 whereas listing of shares is expected on 13th December 2021.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!