BackGR Infraprojects IPO: What GMP signals ahead of issue opening for subscription
G R Infraprojects Limited IPO (Initial Public Offer) is opening for subscription on 7th July 2021 and it will remain open for bidding till 9th July 2021
PremiumGR Infraprojects IPO: G R Infraprojects Limited IPO (Initial Public Offer) is opening for subscription on 7th July 2021 and it will remain open for bidding till 9th July 2021. However, according to the market observers, GR Infraprojects IPO GMP (grey market premium) today is ₹350, which reflects bullish expectation of the markets in regard to the construction company's public issue. They said that higher share price in the grey market just ahead of the issue opening for subscription may also get reflected in its subscription but they advised investors to look at financials of the company too as grey market should not be the criteria for bidding an IPO.
Speaking on GR Infraprojects IPO GMP and its meaning for the bidders Avinash Gorakshkar, Head of Research at Profitmart Securities said, "GMP of an IPO is nothing but the expected listing gain of the public issue by some section of the market enthusiasts. It is unofficial and it keeps on changing from day to day. So, one should look at the GMP of an IPO as current market sentiment in regard to the public issue, which is short-lived."
So, on the basis of what Avinash Gorakshkar said, the GR Infraprojects IPO today of ₹350 signals GR Infraprojects IPO listing at ₹1187 ( ₹837 + ₹350) as the price band of the public issue is ₹828 to ₹837.
Advising retail investors too look at the financials too while subscribing the public issue Abhay Doshi, Founder, UnlistedArena.com said, "It has been found that retail investors look at the grey market performance of the IPO before taking any decision in regard to its subscription. So, higher GR Infraprojects IPO GMP would definitely have some impact on its subscription too but I would advise them to look at the financials of the company instead of the GMP. Financials are more concrete information about the company's public issue performance rather the unofficial grey market."
Highlighting the strong financials and other fundamentals supporting GR Infraprojects IPO Saurabh Joshi Research Analyst at Marwadi Shares and Finance said, "The company is going to list at PE multiple of 8.51 with a market cap of ₹80,929, while its peers namely KNR Constructions Ltd and PNC Infratech Ltd is trading at the multiple of 16.6 and 15.10 respectively. We recommend to “Subscribe" this IPO as the company is an EPC player with road project focus having established track record of timely execution and is available as favourable valuation as compared to its peers."
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