Anand Rathi IPO: Does GMP, Membership Status Indicate After Two Days Of Bidding

Anand Rathi IPO GMP

After registering a steady growth in Gray Market Premium (GMP), Anand Rathi IPO GMP is in this position today 125, 10 Below Your Friday GMP 135. Market observers said the fall could be attributed to the weekend sell-off in the Indian stock market. He said that Anand Rathi’s share premium has increased 85 to 135 This week in gray market without registering any decline on intraday basis till Friday. However, he added that despite 100 per cent OFS being reserved for the public issue, its GMP remains above 100 for the last three days, which is good for an IPO. He further said that the status of Anand Rathi IPO membership will increase on Monday as they, who are in wait and watch condition due to weekend, can come in bulk and bid for public issue before the last date of bidding. .

What does this GMP mean?

Market observers said the gray market gives an indication of the premium listing gains that the gray market is expecting from the IPO. Anand Rathi’s IPO is today as GMP 125, means that the gray market expects Anand Rathi’s shares to get listed at approx. 675 ( 550+ 125), which is 20 percent higher than its price band from 530 550 per equity share.

However, stock market observers advised the bidders to look at the company’s financial position rather than the company’s gray market performance. He added that the gray market premium is an unofficial data and has nothing to do with the company’s balance sheet. He said that the fundamentals and valuation of a company determines whether a public issue is strong or weak.

Anand Rathi IPO subscribed or not?

Anand Rathi is giving ‘subscribe’ tag to the IPO; Ravi Singhal, vice chairman, GCL Securities, said, “Despite 100% OFS, one can apply for a public issue as the valuations look attractive.” However, Ravi Singhal of GCL Securities said there should be a longer-term outlook with regard to the public issue.

Highlighting the core principles of Anand Rathi Wealth, which can attract bidders on Monday; Abhay Doshi, Founder, UnlistedArena.com, said, “Anand Rathi Wealth has registered exceptional growth in the 5-month period ended August 21, while the performance has been stable over the last 3 financial years. The valuation looks absolutely valuable as the issue price is 50 times PE based on FY2011 performance.”

Anand Rathi IPO Details

The share allotment of Wealth Management Company may be finalized on 9th December 2021, while the shares of the company may get listed on NSE and BSE on 14th December 2021.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.