Venus Pipes Ipo: What Gmp (grey Market Premium) Signals Ahead Of Share Listing

Venus Pipes IPO GMP today

According to market observers, Venus Pipes IPO GMP today is ₹45, which is around ₹20 higher from its yesterday evening’s grey market premium (GMP) of ₹25. They said that such a sharp rise in Venus Pipes IPO GMP can be attributed to the sharp upside moves in secondary market on Friday. They said that after remaining under the sell-off heat for almost a weak, grey market has responded strongly after the trend reversal on Dalal Street. Following weakness in stock market, grey market premium of the public issue had went down up to ₹23 but it has gained its ground at a faster rate than expected by market observers.

What this GMP mean?

Market observers said that Venus Pipes IPO GMP today is ₹45, which means grey market is expecting that Venus Pipes IPO listing would be around ₹371 ( ₹326 + ₹45), which is around 14 per cent higher from its price band of ₹310 to ₹326 per equity share.

So, grey market is expecting double digit premium from the public issue provided secondary market sentiment remains positive on the listing date.

However, stock market experts said that GMP is not an ideal way of making any conclusion in regard to listing premium from a public issue. They said that even if the listing is weak, it is bound to recover provided its fundamentals are strong. Asking allottees to learn from Adani Wilmar IPO, they said that one should look at the fundamentals of the company as it would give concrete signal in regard to the financials of the company.