Aditya Birla AMC IPO share allotment announced. What GMP signals now
Aditya Birla AMC IPO GMP today is ₹35, which is ₹5 higher from its Wednesday's GMP of ₹30, say market observers
Aditya Birla AMC IPO GMP: Aditya Birla Sun Life (ABSL) AMC share allotment has been announced today and lucky bidders of this ₹2,768.26 crore public issue are keeping a close watch on the grey market. According to market observers, Aditya Birla AMC shares have once again started appreciating in the grey market. Today, a share of Aditya Birla AMC is trading at a premium of ₹35 in the grey market.
Aditya Birla AMC IPO GMP (grey market premium)
Aditya Birla AMC IPO GMP today is ₹35, which is ₹5 higher from its Wednesday's GMP of ₹30. According to market observers, this is good news for those who bid for the public issue as shares of ABSL were once trading at a discount of ₹2 on Tuesday. They said that due to tepid response by bidders, Aditya Birla AMC IPO GMP nosedived from ₹70 to minus ₹2 in just one week. However, as the share allotment process has begun, the public issue is once again gaining its lost ground in the grey market. They expected further gain in the grey market premium of Aditya Birla AMC IPO as financials of the company is quite strong.
What this GMP mean
As per the market observers, GMP of the public issue reflects about the listing gain expected by grey market on that particular date. As Aditya Birla AMC IPO GMP today is ₹35, it means grey market is expecting that the public issue will get listed at around ₹747 ( ₹712 + ₹35) — which is around 5 per cent higher from its price band of ₹695 to ₹712 per equity share. So, one can expect 'single digit listing gain percentage' from this public issue on 11th October 2021.
However, market observers maintained that GMP should not be the criteria to make any decision in regard to success of failure of a public issue. One should look at the financials of the company, because it's concrete.
Speaking on the fundamentals that may support Aditya Birla AMC IPO listing; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the TTM adjusted EPS of ₹20.27 on the post-issue basis, the company is going to list at a P/E ratio of 35.13 with a market cap of ₹2,05,056 mn while its peers namely HDFC AMC and Nippon Life are trading at a P/E of 49.99 and 38.61 respectively." He said that the ABSL is the largest non-bank affiliated asset manager in India with diverse product portfolio and geographically diversified pan-India distribution presence. Also, the company is available at a reasonable valuation as compared to its peers.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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