KIMS Hospitals IPO: What's grey market premium (GMP) signaling for the issue?2 min read . Updated: 17 Jun 2021, 10:58 AM IST
- KIMS Hospitals IPO GMP (grey market premium) that was at ₹60 yesterday has moved up to ₹75 today
KIMS Hospitals IPO: The Krishna Institute of Medical Sciences (KIMS Hospitals) Initial Public Offer (IPO) became open for subscription yesterday and it got subscribed 27 per cent on first day of bidding. The public issue will remain open for subscription till 18th June 2021 and promoters of the company may expect this subscription to go up and meet their expectations. According to the market observers, KIMS Hospitals IPO GMP (grey market premium) that was at ₹60 yesterday has moved up to ₹75 today. However, the observers also informed that at one point of time, KIMS Hospitals shares were available at a premium of ₹130 in the grey market.
Speaking on what GMP signals about the public issue Avinash Gorakshkar, Head of Research at Profitmart said, "The GMP of an IPO is completely speculative and unofficial in nature. However, it involves those people too, who have an idea about the financials of the company. So, people who want to invest in the IPO rely on the GMP numbers of a public issue."
Standing in sync with Avinash Gorakshkar's views; Abhay Doshi, Founder at UnlistedArena.com said, "GMP of a public issue is a short-term sentiment and it keeps on changing. It has some connect with the mood of the market as well. Since, the overall outlook of the market is positive, shares of the public issues in the grey market are available at higher premium."
On KIMS Hospitals GMP today rising against yesterday's price Avinash Gorakshkar of Profitmart securities said that grey market is linked to demand and supply constraint. Since, the demand for the IPO is expected to peak the GMP is rising. However, GMP should not be the criteria for deciding whether to subscribe an IPO or not. One must look at the fundamentals of the IPO before going for subscription of the public offer.
Speaking on the fundamentals and financials Krishna Institute of Medical Sciences Ltd Saurabh Joshi Research Analyst at Marwadi Shares and Finance Ltd said, "Considering FY 21 Adjusted EPS of 25.68 on a post-issue basis, the company is going to list at PE of 32.13X with a market cap of ₹66,014 million whereas its peers namely Apollo Hospitals is trading at PE of 238. We recommend to “Subscribe" this IPO as the company is one of the largest corporate healthcare service providers in AP (Andhra Pradesh) and Telangana and is available at a reasonable valuation compared to its peers."
KIMS Hospitals IPO details
KIMS Hospitals IPO price band has been fixed at ₹815 to 825 and its allotment date is 23rd June 2021. Tentative date for KIMS Hospitals IPO listing is 28th June 2021 and it will be listed at both NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
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