BackVijaya Diagnostic IPO: GMP remains steady ahead of subscription opening
Vijaya Diagnostic IPO GMP has been nosediving ever since it became available for trade in the grey market
PremiumVijaya Diagnostic IPO GMP: After nosediving from ₹40 to ₹10, Vijaya Diagnostic IPO grey market premium today witnessed some improvement as its shares are available today at a premium of ₹16 in the grey market. According to market observers, Vijaya Diagnostic IPO GMP today is ₹16, which is ₹6 up from its yesterday's grey market premium of ₹10. However, market observers maintained that higher valuations and 100 per cent Offer for Sale (OFS) may go against the public issue and dull response to the public offer may continue when it opens for subscription on 1st September 2021.
Vijaya Diagnostic IPO grey market premium
As per the market observers, Vijaya Diagnostic IPO GMP has been nosediving ever since it became available for trade in the grey market. They said that in the last one week, Vijaya Diagnostic IPO grey market price has tanked from ₹40 to ₹10. However, it showed some signs of recovery as Vijaya Diagnostic IPO GMP today is ₹16 — ₹6 up from yesterday's grey market premium. But, it's still too little if we look at the price band of ₹522 to ₹531. They said that due to recent fiasco in primary market, investors are more concerned on valuation front. Since, valuation of Vijaya Diagnostic IPO is higher and it is 100 OFS in nature, they expected that dull response may continue even when its subscription becomes open from tomorrow i.e. 1st September 2021.
What this GMP mean for the public issue
Market observers went on to add that grey market premium of an IPO reflects about the listing gain expected by the grey market. They said that Vijaya Diagnostic IPO GMP today is ₹16 that means grey market is expecting this public issue's listing at around ₹547 ( ₹531 + ₹16).
Speaking on the reasons that may work as an impediment for the public issue to succeed; Abhayn Doshi, Founder at UnlistedArena.com said, "100 per cent OFS, valuation on higher side may go against the public issue even though the company financials reflect strong fundamentals."
Highlighting the strong fundamentals that may work in favour of the company in long-term; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, "Considering the FY-21 adjusted EPS of Rs.8.26 on the post-issue basis, the company is going to list at a P/E multiple of 64.26 with a market cap of ₹54,144 mn while its peers namely Dr. Lal Path Labs and Metropolis Healthcare are trading at a P/E multiple of 80.66 and 56.55 respectively."
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