Groww IPO Headed For A Muted Or Discounted Listing? Here's What Grey Market Trends Suggest
The Grey Market Premium (GMP), an unofficial barometer of listing expectations, has slid sharply by as much as 76% since the IPO was launched on November 4.
The listing of Billionbrains Garage Ventures Ltd. will be in focus as investors await the company's debut on the stock market this week.
The share allotment status for the Groww IPO was finalised on Monday, November 10. Successful bidders will be allotted the shares on Tuesday, November 11. Shares of Billionbrains Garage Ventures (Groww IPO) will list on the BSE and NSE on Wednesday, November 12.
The Initial Public Offering (IPO) of Billionbrains Garage Ventures Ltd. (Groww) was subscribed 17.60 times on its third and last day of bidding on Friday. According to BSE data, the Rs 6,632.30-crore IPO received bids for 641.87 crore shares against 36.48 crore shares on offer.
Ahead of its listing, there are mixed sentiments around the Bengaluru-based fintech company's debut.
Despite the strong subscription, the Grey Market Premium (GMP), an unofficial barometer of listing expectations, has slid from a high of Rs 16.5 to just Rs 4. The GMP for the mainboard offer has declined significantly (as much as 76%) since the IPO opened for subscription on November 4.
The current GMP still indicates positive listing gains for investors, with market estimates suggesting a moderate premium over the issue price. Here’s a look at what the latest market trends indicate for the Groww IPO.
Groww IPO Latest GMP
The Grey Market Premium (GMP) for the Groww IPO stood at Rs 4 per share as of 10:00 a.m. on November 11. Based on the upper price band of Rs 100, the unlisted shares of Billionbrains Garage Ventures were trading at Rs 104, an approximate listing gain of around 4%.
For context, this is the lowest GMP recorded for the Groww IPO since October 28.
While the GMP for the mainboard offer had initially increased ahead of its launch on November 4, it has since shown a consistent decline over the last few days. The highest GMP recorded for the Groww IPO was Rs 16.7 on November 1, which then slid to Rs 16.5 on November 3. A further drop was observed when the GMP touched Rs 14 on November 4, the day the IPO opened. The GMP declined further to Rs 5 when the IPO concluded its subscription on November 7.
Groww IPO: Key Details
The Billionbrains Garage Ventures (Groww) IPO is a book-building issue worth Rs 6,632.3 crore. It comprises a fresh issuance of 10.6 crore shares, valued at Rs 1,060 crore, and an offer-for-sale (OFS) of 55.72 crore shares, amounting to Rs 5,572.3 crore.
The price band for the IPO was set at Rs 95 and Rs 100 per share.
Kotak Mahindra Capital Ltd. is the book running lead manager and MUFG Intime India Pvt. is the registrar of the issue.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
