Devyani International IPO GMP: According to market observers, grey market premium is an indication about expected listing gain from the public issue
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.
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."