The initial public offering (IPO) market is already making it a spirited week as five new public offerings viz. the Globe Civil Projects IPO, the Ellen barrie industrial gases IPO and the Kalpataru IPO are lined up to make it to the primary market today (Tuesday, June 24) though the pace of subscriptions is slow. This inflow coincides with the steady growth in investor euphoria as evidence of the continued appetite of new equity solutions.
Analysts are of the opinion that there is an overall market sentiment that is positive, owing to the improvement in the macro -economic indicators, favourable liquidity levels and an increase in activity with both institutional and retail investors. Recent IPOs has done well to ensure confidence and create greater interest available in the primary capital market.
The founder of Kejriwal Research and Investment Services Arun Kejriwal suggests, that these three companies (Ellenbarrie Industrial Gases, Globe Civil Projects, and Kalpataru) are not operating within the same sphere and, therefore, cannot be compared.
Talking about each one of them, one by one, Kejriwal told that Globe Civil Projects is too small in the size of its company and turnover, and it is not viable that investors can target it in terms of huge rewards.
Kalpataru, in its turn, has its problems associated with the debt and inventory, which makes it a less good and safe real estate investment now since it takes a long-term outlook and it is not clear at present whether it is going to pay off medium-term investments.
On the case of Ellenbarrie Industrial Gases, the company might look expensive on valuation of 70 times but its relative competition which is on 130 times is expensive as compared to other companies.
An advantageous factor about Ellenbarrie is that it is a small company undertaking massive growth in respect.
Out of the three, the safest bet is Ellenbarrie Industrial Gases.
Let's take a look at the grey market premium trends:
Ellenbarrie Industrial Gases IPO GMP at present is +7. This is an indication that Ellenbarrie Industrial Gases share price was selling at a premium of 7 rupee in grey market as indicated by investorgain.com.
Taking into account the top side of the IPO price band and the present premium in the grey market, listing price of share price of Ellenbarrie Industrial Gases has been estimated to be at the level of 407, per share, which is approximately 1.75 percent more than the IPO price i.e. 400.
The Dyenamic Inline programme is currently available at a strong level based on the past 12 sessions of the grey market trends in activity. Experts at investorgain.com have indicated that the minimum GMP is 0.00 whereas the maximum GMP is 12.
Globe Civil Projects IPO GMP today is +15. It means that Globe Civil Projects share price had been trading at a premium of 15 in the grey market as investorgain.com reveals.
Looking at the top of the IPO price band and the prevailing premium in grey market, the approximate listing price of Globe Civil Projects share price is recommended at 86 per share and this is 21.13 per cent above the IPO price of 71.
Kalpataru IPO GMP today is +9. This indicates Kalpataru share price was trading at a premium of ₹9 in the grey market, according to investorgain.com.
In view of the maximum price of the IPO band and the existing premium at the grey market, the projected offering price of Kalpataru share price is presented at 423 each, a premium of 2.17 per cent to IPO price of 414.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: For educational reasons, this content was created. Finocrunch is not responsible for the views and recommendations mentioned here. It is important for investors to seek support from experienced professionals before taking decisions.
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