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Ami Organics IPO: GMP see a big jump ahead of subscription opening date

Ami Organics IPO GMP today logged 150 per cent rise that may lead to rave response from the bidders as chemical space is buzzing and valuations of the public issue is moderate, say market observers. Photo: Courtesy Ami Organics websitePremium
Ami Organics IPO GMP today logged 150 per cent rise that may lead to rave response from the bidders as chemical space is buzzing and valuations of the public issue is moderate, say market observers. Photo: Courtesy Ami Organics website

  • Ami Organics IPO GMP today is 125, which is 75 higher from its yesterday's grey market premium of 50

Ami Organics IPO GMP: After trading in the range of 50 to 60 for near one week, shares of Ami Organics are trading today at a premium of 125 in the grey market — more than double of Ami Organics IPO grey market premium of 50 on yesterday. According to market observers, this is a good sign for the public issue as it is going to open for subscription on tomorrow. Market observers went on to add that yesterday mostly all the recently listed IPOs performed well, which improved the sentiments, resulting in increasing premium of Ami organics shares in the grey market.

Ami Organics IPO grey market premium

According to market observers, Ami Organics IPO GMP today is 125, which is 75 higher from its yesterday's grey market premium of 50. So, Ami Organics IPO grey market premium has logged more than 100 per cent rise in its premium just one day ahead of the subscription opening date i.e. 1st September 2021. They said that Ami Organics IPO GMP had been oscillating in between 50 to 60 for the last one week and it more than doubled just one day ahead of Ami Organics IPO subscription date, which may lead to rave response from the bidders as chemical space is buzzing and valuations of the public issue is moderate.

What this GMP mean

The market observers maintained that grey market premium of any public issue simply means the expected listing gain predicted by the grey market at that time. Since, Ami Organics IPO GMP today is 125, it means grey market is expecting Ami Organics IPO listing at around 735 ( 610 + 125) — around 20 per cent higher from its price band of 603 to 610.

Expecting rave response from bidders; Abhay Doshi, Founder at UnlistedArena.com said, "Yesterday recently listed IPO pack were in action which worked as improving the sentiments of primary market which was almost nil after recent fiasco in primary markets. Secondly, all chemical stocks are buzzing in listed space. So, we can see a rub-off effect in Ami Organics too." Doshi went on to add that valuation will play a big role against GMP. Investors who were applying just by watching GMP will be cautious now as last few share listings have not been in sync with the grey market expectations.

Giving 'subscribe' tag to Ami Organics IPO; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 adjusted EPS of 14.82 on post-issue basis, the company is going to list at a P/E multiple of 41.16 with a market cap of 22,227 mn while its peers namely Aarti Industries and Hikal are trading at a P/E multiple of 54.20 and 46.13 respectively. We assign a subscribe rating to this IPO as the company has a strong and diversified product portfolio supported by strong R&D and process chemistry skills and is available at reasonable valuation as compared to its peers."

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