.
.
In a sure indication of the bullishness in the Indian stock markets, the grey market for IPOs has resurfaced in Ahmedabad after a gap of almost 18 months.
Ahmedabads grey market for IPOs is considered as a bench-mark for new IPO listings.
After a dry spell of almost one and half years, the momentum has come back with punters resuming their betting on IPO of Mahindra Holidays and Resorts India Limited , the first company to test the waters after the meltdown started early last year. Punters are trading the Mahindra Holidays shares at a premium of Rs 52 over and above the official issue prise. The companys IPO, which opened on Tuesday, has fixed the price band of Rs 275 to Rs 325 for per equity share.
Apart from premium, punters are buying IPO applications, each with bids for share worth Rs 1 lakh, for anywhere between Rs 1800 and Rs 2,000. Once the investor gets the allotment, they have to sell them on the day of listing at the price committed to the punters. It is not only market-savvy investors from Gujarat, but merchant bankers and lead managers to IPOs from Mumbai, Delhi and elsewhere who consider Ahmedabads grey markets premium rate as main determining factor for IPO listing.
Even as most investors have kept their fingers crossed over the Mahindra IPO, the trading momentum in the grey markets is gradually picking up, said a grey market operator.
Sources said that investors participation in the grey market is expected to increase as the companies have started queuing up for tapping the primary markets for raising funds.
Around 18 companies are believed to have shown interest to enter the capital markets after the return of UPA government at the Centre. Some bigticket IPOs include Adani Power, National Hydrolic Power Corporation, Oil India and Pipavav Shipyards.
TIMES OF INDIA STORY Link
.
.
No comments:
Post a Comment