Clean Science IPO: GMP indicates strong listing, other details of the issue2 min read . Updated: 09 Jul 2021, 09:17 AM IST
- As per the Clean Science IPO GMP today, expected listing premium of the IPO is more than 50 per cent
Clean Science IPO subscription status after two days of bidding is robust 4.3 times and shares of the company in grey market is available at a premium of ₹480. According to the market observers, Clean Science IPO GMP has been rising ever since it opened for subscription on 7th July and it may play a big role in the last day's bidding i.e. today. They said that a large number of IPO bidders look at the GMP (grey market premium) of the public offer before going into the financial details of the company. For them, GMP of an IPO is the primary short-term indicator of the IPO's performance.
Speaking on the Clean Science IPO GMP and other financial details helping the bidders Abhay Doshi, Founder, UnlistedArena.com said, "The GMP of an issue offer is short-term sentiment of the market but it is unofficial data and hence one should look at the financials of the company as well. As per its financials, Clean Science & Technologies manufactures functionally critical specialty chemicals. It derives around 65 per cent of revenues from exports. The company has a track record of strong and consistent financial performance."
Abhay said that GMP indicates at what premium market is expecting the listing of that particular IPO. However, it keeps on changing as we are witnessing in the case of Clean Science IPO GMP. It was below ₹400 when the IPO was opening for subscription and in the last two days, it has skyrocketed to ₹480 that means as per the Clean Science IPO GMP today, expected listing price of the IPO today is ₹1380 ( ₹900 + ₹480). Therefore, as per the Clean Science IPO GMP today, expected listing premium of the IPO is more than 50 per cent.
However, from the fundamental perspective, the IPO is looking attractive as well.
Speaking on the financial supporting bidders' positive mood Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, "The company is going to list at PE multiple of 48.18 with a market cap of ₹95,597 million, while its peers namely Vinati Organics and Fine Organics are trading at the PE multiple of 77.4 and 75.1 respectively. We recommend to “Subscribe" this IPO as the company is amongst the largest producers globally of functionally critical specialty chemicals and is available at a favourable valuation as compared to its peers."
Today is the last day for Clean Science IPO bidding. Clean Science IPO allotment will be finalised on 14th July 2021 and it will list at both NSE and BSE on 19th July 2021. Clean Science IPO price band has been fixed at ₹880 to ₹900.
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