Nykaa watches more GMP than Paytm

Nykaa owner FSN E-commerce Ventures trades in IPO, which closed on Monday ₹649 premium over issue price ₹Trades between 1,125 Sigachi Industries ₹75-95 premium. Nykaa’s IPO closed on Monday with 82x subscriptions, while Policybazaar’s IPO closed on Wednesday. The gray market is an informal market for trading the securities of firms conducting IPOs. Investors use this off-exchange market to acquire shares over and above the typical allocation limit in an IPO, especially when they are excited to have a strong listing day. While market participants often use gray market premiums as an indicator of IPO demand and listing day performance, many experts consider these to be a vanity metric, given the off-exchange over the counter nature of the market, which Price may distort the search. . “GMP is a vanity figure and does not make sense. But for the sake of discussion, it seems that the Paytm model does not make sense for someone with so many businesses, none of which are making money. Only Paytm Payments The bank itself makes the money and Paytm owns just 49%. Certainly, the market turmoil and the issue size of the highest IPO have added more worries to it,” said a dealer on the condition of anonymity .

The gray market premium is also a function of supply, and generally, smaller sized IPOs tend to see higher premiums. Given the record-setting ₹18,300 crore issue size of Paytm IPO, supply of shares available to high net worth individuals and retail investors within the IPO is enough to dampen the demand in the gray market.