Glenmark Life Sciences IPO GMP has been sliding after the closure of its bidding and we may witness Glenmark IPO listing at reasonable gains, say market observers
Glenmark Life Sciences IPO: Share allotment of Glenmark Life Sciences IPO is announced and now all eyes are set on the Glenmark Life IPO listing date, which is likely on 6th August 2021. Though we are one days away from the share listing date, grey market is already signaling about the kind of listing one can expect in regard to this ₹1,513.60 crore worth public issue. As per the market observers, Glenmark Life Sciences IPO GMP has been nosediving after the closure of its bidding and we may witness Glenmark Life IPO listing at reasonable gains. However, stock market experts maintained that fundamentals of Glenmark Life is quite strong and can give good returns in long-term.
According to market observers, Glenmark Life Sciences IPO GMP today is ₹85, which was ₹80 on Wednesday, ₹85 on Tuesday and ₹90 on Monday respectively. They said that slide in GMP post-closure of bidding was expected but not to this extent. Observers said that such a trend in grey market reflects that Glenmark Life Sciences IPO will have a reasonable listing where one can expect to get listing gains from 12 per cent to 20 per cent.
What this grey market premium means
As the Glenmark Life Sciences IPO today is ₹85 that means the market is expecting listing of the IPO at around ₹805 ( ₹720 + ₹85) — delivering around 12 per cent premium to the lucky bidders. However, they also maintained that Glenmark Life Sciences IPO grey market premium has come down from around ₹150 to this level, so the highest one can expect from this public issue is 20 per cent.
On what financials of the company suggest about the listing gains that one can expect from Glenmark Life Sciences IPO; Yash Gupta, Equity Research Associate at Angel Broking said, "The expected listing of Glenmark Life Sciences IPO will be on 6th August 2021, investors will be getting shares in their Demat account today. Glenmark IPO received a good response from retail investors as well as institutional investors and overall IPO got oversubscribed by 44.1 times. We expect Glenmark to debut on the stock market near price to earnings (P/E) of 25-27 times i.e ₹810 to ₹870 as peers are trading in this rage and even Glenmark Life Science has a better return ratio, so we expect listing gains will be in between 12 per cent to 20 per cent. We will suggest retail investors book partial profit if listing gains are in the above range and long-term investors can hold the IPO as we expect Glenmark Life Science to do better than the industry in the long term."