BackVedant Fashions IPO: What GMP signals as all eyes set on share listing date
Vedant Fashions IPO GMP today is zero that means grey market is expecting 'par listing' of Vedant Fashions shares, said market observers
PremiumVedant Fashions IPO: After announcement of share allotment, allottees are eagerly waiting for Vedant Fashions IPO listing date, which is most likely on 16th February 2022. The public issue worth ₹3,149.19 crore was subscribed 2.57 times whereas its retail portion was subscribed 0.39 times. According to market observers, Vedant Fashions share price is quoting at par with its upper price band in grey market today.
Vedant Fashions IPO GMP today
Market observers said that Vedant Fashions IPO GMP today is zero that means grey market is expecting 'par listing' of Vedant Fashions IPO. They said that global selloff leading to bloodbath at Dalal Street on Friday and Monday session has led to change in grey market sentiment in regard to the public issue. Apart from this, 100 per cent offer-for-sale has already reflected tepid response by the investors. They said that escalation of Russia Ukraine conflict, jump in inflation fueling global inflation concern are some of the factors that will continue to impact global secondary market in near term. They advised allottees to keep the stock for long term in case there is tepid listing of the public issue tomorrow.
They said that grey market has remained highly volatile with negative bias in last few sessions. This led to slump in Vedant Fashions IPO GMP, which was once at ₹65. But, due to the escalation in Russia Ukraine conflict leading to rise in global inflation worries,
What this GMP mean?
Market observers said that grey market premium is nothing but an unofficial estimate in regard to listing premium. As Vedant Fashions IPO GMP today is zero, it means that grey market is expecting Vedant Fashions IPO listing at around ₹866 i.e. par listing of the public issue with the upper price band.
However, secondary market experts suggested allottees to remain unmoved by these negative sentiments coming in from the grey market and advised them to stick with the fundamentals of the company.
Highlighting the fundamentals of Vedant Fashions; Abhay Doshi, Founder at UnlistedArena.com said, "Vedant Fashions Limited is a prominent player in organized Indian wedding and celebration wear market. The revenues have largely been affected by the pandemic however, 6MFY22 performance shows recovery amid re-opening and we believe the next six months performance will be significant. On the valuation front, the issue is priced at a multiple of 108 to its earnings and 29.2x price to sales based on annualised FY22 earnings and sales. The valuations look expensive leaving nothing for investors on table. The primary market sentiments have nosedived amid sell off in broader market."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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