Mainboard IPOs set to hit the Street. What does GMP indicate ahead of debut?

The Indian equity markets have recently seen a surge in IPO activity, drawing significant investor attention. Currently, five mainboard IPOs are open for subscription.

Vishal Mega Mart, MobiKwik, Inventurus Knowledge Solutions, The International Gemological Institute and Sai Life Sciences have currently invited investors for participation in their initial public offering (IPO).

Barring The International Gemological Institute’s IPO, which opened for subscription earlier on Friday, all other mainboard IPO have witnessed healthy demand from investors, being oversubcribed by as high as 37 times.


Additionally, the grey market premium (GMP) indicates a healthy listing for 4 out of 5 companies. However, it should be noted that the GMP is only an indication of how the stock is likely to perform at the listing.

Here’s what the GMP for the current mainboard IPOs suggests:

MobiKwik

MobiKwik IPO has emerged as the standout performer, commanding the highest GMP in the lot. The GMP stands at 52.3% or Rs 146-156. This reflects heightened investor confidence in the company’s prospects.

Vishal Mega Mart

Vishal Mega Mart IPO is also showing a robust premium of 19.2% or Rs 15-16, underscoring positive sentiment.

The International Gemological Institute

On the first day of the bidding process, The International Gemmological Institute boasts a healthy premium of 17.75% or Rs 74-75, which signals optimism from investors.

Sai Life Sciences

The GMP of Sai Life Sciences stands at 3.28% or Rs 18-19 and the issue has been subscribed nearly 2.7 times so far on the last day of the bidding process, indicating a slightly lukewarm investor sentiment.

As these IPOs move closer to listing, grey market trends provide valuable insights into investor sentiment and expected performance, signalling bullish momentum for most of these offerings. Investors will keenly watch the market debut of these companies in the coming days.

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