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GR Infra, Clean Science IPOs: All eyes on share allocation, what GMP indicates

GR Infrastructure Projects, Clean Science IPOs: GR Infrastructure Projects IPO got subscribed 102.58 times while Clean Science IPO has been subscribed 93.41 times. (iStock)Premium
GR Infrastructure Projects, Clean Science IPOs: GR Infrastructure Projects IPO got subscribed 102.58 times while Clean Science IPO has been subscribed 93.41 times. (iStock)

  • GR Infrastructure Projects, Clean Science IPOs: As per the market observers, both shares were available at around 50 per cent premium in the grey market on the last date of bidding but after the end of bidding their grey market premium jumped around 5 per cent and currently both the stocks are available at near 55 per cent premium in the grey market

GR Infrastructure Projects, Clean Science IPOs: Bidding for GR Infrastructure Projects and Clean Science IPOs ended on 9th July 2021. Both the issues received rave response from the bidders as GR Infrastructure Projects IPO got subscribed 102.58 times while Clean Science IPO has been subscribed 93.41 times. Meanwhile, this stellar response from the subscribers has resulted in the performance of respective shares in the grey market as well. As per the market observers, both shares were available at around 50 per cent premium in the grey market on the last date of bidding but after the end of bidding their grey market premium jumped around 5 per cent and currently both the stocks are available at near 55 per cent premium in the grey market. So, this rise in GR Infrastructure IPO GMP and Clean Science IPO GMP would definitely shift focus on the share allocation date as higher GMP is taken as higher listing gains by most of the IPO bidders.

Speaking on the rise GR Infrastructure IPO GMP and Clean Science IPO GMP Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Rise in GMP is an unofficial short-term sentiment about the IPO listing. In simple terms, an IPO's GMP is an unofficial expectation of the market about the listing gains on the date of share price listing. But, as I said, it is unofficial, non-regulated and it involved those people too, who have high stake in the success or failure of the IPO. So, it's financials that matter the most."

GR Infrastructure IPO GMP today is 458 to 463 that means around 55 per cent listing gains for the IPO as the issue price is fixed at 828 to 837. Similarly, Clean Science IPO GMP today is 495 to 510 that also means near 55 per cent listing gains expectations by the grey market players. Converting the GMP into expected listing price, GR Infra IPO GMP indicates that it would be listed around 1295 to 1300 while Clean Science IPO listing price would be around 1395 to 1410 (as per today’s GMP of both IPOs).

Advising bidders to look at the financials as more concrete indicator of the IPO listing Abhay Doshi, Founder, UnlistedArena.com said, "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."

On GR Infrastructure Projects IPO fundamentals Abhay Doshi said, "On the operational front, the company has witnessed fastest growth in operating income at 47 per cent CAGR (Compound Average Growth Rate) from FY15 to FY20. The issue is quite reasonably priced compared to its peers. The P/E (Private Equity) ratio stands at the multiple of 8.5 for FY21 earnings, which leaves enough on the table for investors."

On how much listing gain one can expect from these two IPOs Avinash Gorakshkar of Profitmart Securities said, "The way bidders have responded to these two public issues, one can expect listing gains in these IPOs from 30-35 per cent to even up to 100 per cent as a particular section of the market is not putting money in the stocks but in the IPOs. So, after listing, the stock is expected to hold its fort for at least three to four days and my advice to the lucky bidders is to hold the counter for at least two to three days as FIIs and mutual fund houses are expected to chip in post-listing in both the stocks."

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