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Home / Markets / Stock Markets /  Shyam Metalics shares' post-allotment GMP suggests strong listing

Shyam Metalics IPO allotment is finalised and shares of the company will be credited into the Demat Account of the lucky allotees on 23rd June. However, if we look at the Shyam Metalics GMP (Grey Market Premium) it is still at high 130. According to market observers, this high share price premium in the grey market means strong listing as financials of the IPO is also strong.

Speaking on what GMP means for any IPO Avinash Gorakshkar, Head of Research at Profitmart securities said, "GMP means expected listing premium that market is expecting from the public issue. The GMP of an IPO simply means listing of the IPO above its offered price. However, it is completely unofficial and it keeps on changing on day to day basis. So, it's better to look at the fundamentals of the IPO too."

Asked about the financials of the company Avinash Gorakshkar of Profitmart Securities said that Shyam Metalics IPO is from the metal sector and the sector is doing well for the last few months. But, due to the recent Chinese plan to use its own reserves, metal sector is under pressure. But, financials of the company is strong and one can expect strong Shym Metalics IPO listing on 24th June 2021.

Standing in sync with Avinash Gorakshkar's views; Abhay Doshi, Founder, UnlistedArena.com said, "Higher Shyam Metalics IPO augurs sentiments in favour of higher listing. But, if we go by the financials, it is also indicating strong listing. So, both sentiment and financials are giving strong listing of the public issue."

Suggesting investors to hold Shyam Metalics IPO Ravi Singhal, Vice Chairman at GCL securities said, "Metal sector is strong in medium to long-term and hence I recommend Shyam Metalics IPO allotees to hold the counter after listing."

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