Home >Markets >Stock Markets >Rolex Rings shares: What GMP is signaling ahead of listing

Rolex Rings shares: After the finalisation of share allotment, all eyes are now set on Rolex Rings IPO listing date i.e. 9th August 2021. However, those who got the auto component company's shares during allotment process, they are having a close eye on the grey market as well. In fact, those who were unlucky even after applying for the public issue; they would also keep an eye on the Rolex Rings IPO listing as some of them may look at buying the counter from open market. According to market observers, Rolex Rings IPO GMP today is 480, 30 up from its yesterday's grey market price. Observers went on to add that the way Rolex Rings IPO grey market premium has remained strong after the closure of its bidding, one can expect strong listing of Rolex Rings shares at Indian bourses.

The market observers went on to add that Rolex Rings IPO grey market premium was at 525 to 550 range during the subscription period and after that it came down to around 430. However, they maintained that dip in share price in grey market after closure of subscription is obvious, but the way Rolex Rings shares have remained strong and once again gaining the lost ground, it indicates that Rolex Rings shares may have a strong listing on 9th August 2021.

What this rise in GMP means?

On how the GMP will impact Rolex rings IPO listing, market observers explained that grey market premium is listing gain expected by grey market from the public issue. As Rolex Rings IPO GMP today is 480, it simply means that grey market is expecting share listing at 1380 ( 900 + 480). This means, grey market is expecting more than 50 per cent listing gain from Rolex Rings public issue.

Giving a cue about the expected listing of Rolex Rings shares; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance said, "Considering the FY-21 adjusted EPS of 31.93 on a post-issue basis, the company is going to list at a P/E of 28.19 with a market cap of 24,510 million, while its peers namely Ramkrishna Forgings and MM Forgings are trading at a P/E of 123.30 and 37.14 respectively."

Advising lucky bidders to book profit on the listing date Abhay Doshi, Founder at said, "High sentiment in primary markets may emanate in listing gains but one should book profit on the listing date as company growth seems to be missing as revenue from operations remained at 6,163.32 million in FY 2020-21 from 9,043 million in FY 2019."

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