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regular-article-logo Thursday, 23 May 2024

Tata Technologies dazzles in grey market, trades at 82 per cent premium ahead of allotment

Ahead of the allotment, the grey market premium (GMP) — the additional amount over the IPO price in the unregulated over-the-counter market — particularly for Tata Technologies continued to trade higher with the website IPO Watch pegging it at Rs 410 per share

Our Bureau Mumbai Published 28.11.23, 07:10 AM
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After the IPO rush last week, the focus has shifted to the allotments of Tata Technologies, Flair Writing Industries and Gandhar Oil Refinery (India) Ltd, which are likely to happen on Tuesday.

The allotment for Indian Renewable Energy Development Agency (Ireda) was done on Saturday.

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Ahead of the allotment, the grey market premium (GMP) — the additional amount over the IPO price in the unregulated over-the-counter market — particularly for Tata Technologies continued to trade higher with the website IPO Watch pegging it at Rs 410 per share.

This marks an 82 per cent premium to the issue price of Rs 500.

Similarly, the Kostak rate for the offering stands at Rs 800. Kostak is the price or the premium at which IPO applications are traded in the market. It happens before allotment.

The rates are naturally higher in those cases where the issue has been oversubscribed and investors expect a strong opening.

Market circles said that while the shares of Tata Technologies, Ireda and Gandhar Oil are likely to be listed on Thursday, pen maker Flair Writing Industries may happen on Friday.

``The market is ready for the debut of five new companies and this will begin with the listing of Ireda, a leading non-banking financial institution (NBFI) dedicated to renewable energy projects. GMP for Ireda shares is currently at Rs 10, suggesting that the shares could list at around Rs 42 per share," Shivani Nyati, head of Wealth, Swastika Investmart Ltd, said.

"The IPO was priced fairly, reflecting the company's strong fundamentals and growth potential. Ireda is likely to generate decent listing gains."

Nyati added that GMP for Flair Writing shares is currently around Rs 84 (27.63 per cent), indicating that the company could make its debut at around Rs 388 per share.

On the other hand, GMP for Gandhar Oil Refinery is now at around Rs 75 per share, indicating a 44 per cent premium to its IPO price of Rs 169 per share.

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