Venus Pipes IPO: The shares of Venus Pipes & Tubes Limited are likely to be listed on BSE and NSE on 24th May 2022 i.e. Tuesday next week. After the trend reversal in the secondary markets on Friday, allottees now expect a better premium from the public offering as gray market sentiment has also picked up after a sharp jump on Dalal Street. As per market observers, the shares of Venus Pipes & Tubes are available at a premium of Today 45 in the gray market.
Venus Pipes IPO GMP Today
According to Market Observers, Venus Pipes IPO Is GMP Today 45, which is around 20 more than yesterday evening’s gray market premium (GMP) 25. He said that such a sharp rise in the IPO GMP of Venus Pipes can be attributed to the sharp jump in the secondary market on Friday. He said that after being in the heat of a sell-off for almost a weak, the gray market has reacted strongly following the trend reversal on Dalal Street. The gray market premium of the public issue had gone down after the weakness in the stock market. 23 But it has gained ground at a faster rate than market observers expected.
What does this GMP mean?
Market Observers Say Venus Pipes IPO Is GMP Today 45, which means the gray market is expecting the Venus Pipes IPO listing to be around 371 ( 326+ 45), which is about 14 percent higher than its price band from 310 326 per equity share.
Hence, the gray market is expecting a double digit premium from the public issue, provided the secondary market sentiment remains positive on the date of listing.
However, stock market experts say that the GMP is not an ideal way to draw any conclusion regarding the listing premium from a public issue. He said that even if the listing is weak, it is bound to improve, provided its fundamentals are strong. Asking the allottees to learn from the Adani Wilmar IPO, he said one should look at the fundamentals of the company as it would give a concrete indication about the financial position of the company.