- Several IPOs show grey market premiums suggesting listing gains up to 41% for some issues
- Orient Cables IPO priced Rs 258–272 with estimated 41.54% gain based on grey market premium
- Runwal Enterprises, AceVector, and German Green Steel IPOs show moderate premiums and gains
Several IPOs currently in the primary market are commanding premiums in the grey market, with unofficial estimates indicating potential listing gains of up to 41% for some issues. Orient Cables, Snapdeal parent AceVector, Runwal Enterprises and German Green Steel & Power are among the issues being tracked in the grey market. Based on the latest GMP data, Orient Cables and German Steel are indicating the highest potential gains, while Runwal Enterprises and AceVector are showing more modest premiums.
However, grey market premiums are unofficial and unregulated indicators. GMPs can change rapidly before listing and do not guarantee the actual listing price or investor returns.
Orient Cables IPO
Orient Cables' Rs 552 crore IPO comprises a fresh issue of 1.18 crore shares worth Rs 320 crore and an offer for sale of 85.29 lakh shares aggregating to Rs 232 crore.
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The cable and wires manufacturer has fixed the IPO price band at Rs 258–Rs 272 per share. According to the latest data cited from IPOWatch, the GMP stood at Rs 113, implying an estimated listing price of Rs 385 based on the upper end of the price band. This translates into a potential listing gain of around 41.54%.
Investors need to bid for a minimum of 55 shares, requiring an investment of Rs 14,960 at the upper end of the price band.
IIFL Capital and JM Financial are the merchant bankers for the issue, while KFin Technologies is the registrar.
Runwal Enterprises IPO
Real estate developer Runwal Enterprises is looking to raise around Rs 500 crore through a completely fresh issue. The company will issue 1.64 crore new equity shares, with the issue size pegged at Rs 499.83 crore.
The price band has been fixed at Rs 290–Rs 305 per share. Retail investors need to bid for a minimum of one lot of 49 shares, requiring an investment of Rs 14,965 at the upper price band.
The latest GMP stood at Rs 30, according to the IPOWatch, implying an estimated listing price of Rs 335 and a potential gain of around 9.84% over the upper end of the price band.
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The issue is being managed by ICICI Securities, while MUFG Intime India is the registrar.
AceVector (Snapdeal) IPO
AceVector, the parent company of online marketplace Snapdeal, has launched a Rs 420 crore book-built IPO.
The company plans to raise Rs 287 crore through a fresh issue of 8.97 crore equity shares, while existing shareholders will offload 4.16 crore shares worth Rs 133 crore through the OFS route.
The IPO price band is fixed at Rs 30–Rs 32 per share. The latest GMP of Rs 2 implies an estimated listing price of Rs 34 at the upper end of the price band, translating into a potential gain of around 6.25%.
A significant portion of the fresh issue proceeds will be used towards marketing and promotional expenses. Retail investors need to bid for a minimum of 468 shares, requiring an investment of Rs 14,976 at the upper end of the price band.
IIFL Capital Services is managing the issue, while MUFG Intime India is the registrar.
German Green Steel & Power IPO
German Green Steel & Power is looking to raise Rs 303.90 crore through its IPO. The issue comprises a fresh issue of Rs 290 crore through 2.09 crore shares and an OFS component of Rs 13.90 crore involving 10 lakh shares.
The steel manufacturer has fixed the price band at Rs 132–Rs 139 per share.
The latest GMP stood at Rs 28, according to IPOWatch, suggesting an estimated listing price of Rs 167 at the upper end of the price band. This represents a potential gain of around 20.14%.
Investors need to bid for a minimum lot of 107 shares.
Systematix Corporate Services is the book-running lead manager, while Bigshare Services is the registrar.
What Does GMP Indicate?
The grey market premium represents the premium at which IPO shares are reportedly traded in the unofficial market before listing. It is commonly used by market participants as an indication of possible listing sentiment.
However, GMP is not regulated by market authorities and does not guarantee that the stock will list at the implied price. The premium can move sharply based on subscription levels, broader market conditions, demand and sentiment before listing. Therefore, the estimated listing prices based on GMP should not be treated as assured returns or official price forecasts.
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