Home / Markets / Stock Markets /  Devyani International IPO: What GMP signals ahead of stock listing date

Devyani International IPO: Share allotment of Devyani International has been finalised and lucky bidders of the public issue are now eagerly waiting for the expected stock listing date i.e. 16th August 2021. While bidders are busy comparing P/E multiple of Devyani International with its listed peers, they are also keeping their focus on the grey market. As per the market observers,  Devyani International IPO GMP today is 58 — 7 higher from its yesterday's grey market premium of 51. They said that it reflects that grey market is expecting strong listing of Devyani International shares at Indian bourses. The management of QSR chain operators in India has fixed Devyani International IPO price band at 86 to 90 with face value of Re 1 per equity share.

Devyani International IPO grey market premium

As mentioned by market observers, Devyani International IPO GMP today is 58, 7 higher after remaining unchanged at 51 for the last three successive days. So, Devyani International IPO is gaining strength in the grey market that reflects strong conviction of the grey market in regard to the public issue, said market observers. They went on to add that such GMP at robust 58 levels indicates strong listing of the company shares.

What this GMP mean for Devyani International IPO

According to market observers, grey market premium is an indication about expected listing gain from the public issue. Since, Devyani International IPO GMP today is 58 that means grey market is expecting Devyani International IPO listing at around 148 ( 90 + 58). Market observers also maintained that Devyani International IPO GMP has been oscillating around 50 to 55 after the closure of bidding, which means grey market is expecting listing gain from the IPO to the tune of 55 per cent to 60 per cent.

Speaking on the fundamentals that may support listing of Devyani International shares; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Devyani International is a multidimensional comprehensive QSR player with a portfolio of highly recognized global brands and is available at reasonable valuation as compared to its peers. Considering the FY-21 adjusted EBITDA of 1789.23 on post issue basis, the company is going to list at EV/EBITDA of 62.39 with a market cap of 10,822.7 crore, while its peers namely Jubilant Food and Westlife Development are trading at EV/EBITDA of 66.02 and 206.11 respectively."

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