After Zomato IPO allotment, its share price premium in the grey market had gone up from ₹10 to ₹23 today but after the news break of Zomato IPO's likely listing on tomorrow, Zomato IPO GMP has gone up to ₹27
Zomato IPO:Zomato Initial Public offering (IPO) is likely to list tomorrow at both NSE and BSE, a source close to Livemint informed. So, lucky bidders who got Zomato shares allotted today are advised to keep their focus on the Indian bourses when the market opens tomorrow as market observers are expecting strong listing of the public issue.
However, in the grey market, Zomato shares are available at a premium of ₹27 after the market close. In the morning ahead of shares allotment, Zomato IPO GMP today was ₹23. That means, Zomato IPO GMP today post-likely listing on tomorrow, has jumped from ₹23 to ₹27. In the morning, Zomato IPO's GMP was already ₹2 up from its yesterday's grey market premium of ₹21. According to the market observers, Zomato IPO GMP has been continuously rising from 14th July 2021 — Zomato IPO subscription opening date. They said that Zomato share price premium in the grey market has gone up from ₹10 on July 14th to ₹27 today i.e. 22 July 2021 — Zomato IPO allotment date (check allotment status here) logging 170 per cent rise in Zomato IPO grey market premium.
According to market observers, this rise in the Zomato IPO GMP is an indication that market is getting positive to ultra positive about the upcoming public issue. They said that Zomato IPO GMP today at ₹23 means the market is expecting listing gain of ₹27 from the public offer when it will get listed at the Indian bourses. As per the Red Herring Prospectus (RHP) of the public offer, Zomato IPO price band is ₹72 to ₹76 that means the grey market is expecting Zomato IPO listing at around ₹103 — near 35 per cent higher from its issue price offer.
However, Avinash Gorakshkar, Head of Research at Profitmart Securities said that GMP is not a concrete data that should be relied so heavily. He said that it's an unofficial short-term sentiment in regard to the public offer, which changes in one day as well. Gorakshkar went on to add that gery market involves even those people whose interests are at stakes in the public issue. So, sometimes it can be misleading too, and advised bidders and other market observers to rely on the balance sheet of the company as it gives clear picture about the financial health of the company.
Zomato IPO: Expected listing gain
Speaking on the expected listing gain from the Zomato IPO; Ashok Holani, Director at Holani Consultants Private Limited said, "As per the financials of the company, Zomato IPO listing gain can be expected around 25 per cent or roughly near ₹15 per Zomato shares on the listing date of the public issue."