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Ami Organics vs Vijaya Diagnostic IPOs: What GMP signals about the public issues

Ami Organics vs Vijaya Diagnostic IPOs: Vijaya Diagnostics, although, looking fundamentally strong may witness dull response due to valuations being on higher side. (PTI) — Ami Organics vs Vijaya Diagnostic IPOs: Vijaya Diagnostics, although, looking fundamentally strong may witness dull response due to valuations being on higher side. **(PTI)**

2 min read . Updated: 03 Sep 2021, 03:15 PM IST Livemint, Edited By Asit Manohar

Ami Organics vs Vijaya Diagnostic IPOs: Between the two public issues, Ami Organics looks clear winner, say market expert

Ami Organics vs Vijaya Diagnostic IPOs: Bidding for both public issues opened on 1st September 2021 and it will remain open for subscription till 3rd September 2021 i.e. today. After two days of bidding, Ami Organics IPO has been subscribed 3.90 times while Vijaya Diagnostic IPO has received bidding to the tune of 0.47 times of its offer. Like bidders, grey market is also signaling about the two public offers. According to market observers, shares of Ami Organics are available at a premium of ₹105 in grey market today while Vijaya Diagnostic IPO GMP today has slipped in single digit at ₹6. According to market observers, grey market is giving an indication that higher valuations and 100 per cent OFS (Offer for Sale) may go against Vijaya Diagnostics.

Ami Organics vs Vijaya Diagnostic IPOs: Grey market premium

Ami Organics IPO GMP today is ₹105, which is ₹45 down from its yesterday's grey market premium of ₹150. According to market observers, Ami Organics IPO has logged 150 per cent rise in its grey market premium from ₹50 to ₹125 just ahead of its subscription opening. They said that chemical stocks were buzzing at that time and grey market counted that buzz. Now, the space has stabilized and hence Ami Organics IPO GMP is coming to its normal.

However, Vijaya Diagnostic IPO GMP today slipped below ₹10. Its grey market premium today is ₹6 — hitting single digit for the first time ever since it became available for trade in the grey market. In fact, Vijaya Diagnostic IPO GMP in morning today was ₹9 that means it has slipped ₹3 more in the intraday trade session in grey market. Market observers are of the opinion that grey market is trying to indicate that 100 per cent OFS and higher valuation may go against the public issue. They said that much was depending upon the performance of this public issue during subscription but it has failed to get fully subscribed after two days of bidding.

What this GMP mean

As grey market premium means expected listing gain from the IPO. Market observers said that grey market is expecting Ami Organics IPO listing at around ₹715 ( ₹610 + ₹105) — around 16 per cent up from its issue price of ₹603 to ₹610.

However, in the case of Vijaya Diagnostic IPO, grey market premium today is ₹6 that means grey market is expecting Vijaya Diagnostic IPO listing at around ₹537 ( ₹531 + ₹6) — at par with the issue price of the public issue price band of ₹522 to ₹531.

Speaking on Ami Organics vs Vijaya Diagnostic IPOs; Abhay Doshi, Founder at UnlistedArena.com said, "Between the two public issues, Ami Organics looks clear winner. Vijaya Diagnostics, although, looking fundamentally strong may witness dull response due to valuations being on higher side." He went on to add that 100 per cent OFS and valuation on higher side is working as 'turned down' sentiments for Vijaya Diagnostics IPO.

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