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Business News/ Markets / Stock Markets/  Dodla Dairy IPO: What's grey market premium (GMP) signaling for the public issue
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Dodla Dairy IPO: What's grey market premium (GMP) signaling for the public issue

Dodla Dairy IPO GMP today is ₹90 — ₹10 above its yesterday's share price in the grey market, say market observers

Rise in GMP of an IPO is nothing but a sentiment supporting the public issue. It's financials and market mood that decides fate of an IPO and one should look at that rather looking at the unofficial GMP numbers only, say experts. Photo: iStock (iStock)Premium
Rise in GMP of an IPO is nothing but a sentiment supporting the public issue. It's financials and market mood that decides fate of an IPO and one should look at that rather looking at the unofficial GMP numbers only, say experts. Photo: iStock (iStock)

Dodla Dairy IPO GMP: After getting oversubscribed for 45.62 times, there is another god news for the company promoters as the Dodla Dairy share price in the grey market is available today at a premium of 90 — 10 above its yesterday grey market price. According to market observers, Dodla Dairy IPO GMP had been oscillating around 60 to 80 for the last one week and this rise post-closure of the Dodla Dairy IPO subscription is an indication about the listing gains that market is expecting from the public issue.

Speaking on the Dodla Dairy IPO GMP Avinash Gorakshkar said, "Grey market premium is an unofficial indication about the probable listing gains expected by the market observers at the time of listing. But, one should not look at the GMP of a public issue as clear trend for the listing gains as it keeps on changing from day to day and people involved in this market includes those who have stake in the IPO. So, it's better to go through the financials of the company as in my opinion the IPO looks positive. One can expect 15 to 20 per cent listing gains in the Dodla Dairy IPO and my advice for the bidders is to book profit on the listing date."

Abhay Doshi, Founder at UnlistedArena.com said, "Rise in GMP of an IPO is nothing but a sentiment supporting the public issue. It's financials and market mood that decides fate of an IPO and one should look at that rather looking at the unofficial GMP numbers only."

Speaking on what financials of the company speaks Saurabh Joshi Research Analyst at Marwadi Shares and Finance Ltd said, "We recommend to subscribe Dadla Dairy IPO as the company is one of the largest dairy company in the branded consumer market with a strong distribution network. Most importantly, it is available at a reasonable valuation compared to its peers Hatsun Agro and Parag Milk." Joshi went on to add that the company is going to list at the PE multiple of 16.41 which is quite attractive in comparison to its listed peers mentioned earlier.

So, on the basis of above-experts' views, rise in Dodla Dairy IPO GMP is a sentimental morale booster for the promoters of the company. But, if we look at the financials, that also doesn't look bad and one can expect 15 to 20 per cent listed gains provided the market mood remain positive on the listing date.

Dodla Dairy IPO subscription closed yesterday and its allotment will take place on 23rd June 2021. Dodla Dairy IPO listing will take place on 28th June 2021.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 19 Jun 2021, 03:02 PM IST
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