Vedant Fashion's IPO Listing Ahead, Find The GMP Analysis

Shares of Vedant Fashions, the owner of the renowned Manyavar brand, will make their market debut on February 16. According to the grey market premium (GMP) suggestions, the stock will probably make a flat listing. GMP of the stock stood at minus Rs 2 today, which signals that the share will likely make its debut at Rs 864 on Bombay Stock Exchange (BSE).

The price band was set at Rs 824-866 during the IPO. The nominal loss of Rs 2 deciphers into a discount of 0.23 per cent over the issue price of the recently completed IPO.

The competent institutional buyer's category obtained the most significant demand with 7.49 times subscription while the non-institutional investors’ part was subscribed 1.07 times and retail investors’ portion acquired only 39 per cent subscription, which had a range of Rs 824-866 per share.

Predicted Outcome

According to market observers, Vedant Fashions' share price is quoting at par with its upper price band in the grey market today. Market observers said that Vedant Fashions IPO GMP today is zero which means grey market is expecting ‘par listing’ of Vedant Fashions IPO. They said that grey market has stayed volatile with negative bias in the past sessions. This led to a recession in Vedant Fashions IPO GMP, which was once at Rs 65. However, due to the escalation in Russia's Ukraine conflict there has been a rise in global inflation worries. 

“Considering lower-than-expected subscription demands to its initial public offering (IPO), we anticipate at par or discounted listing shown in the volatile markets. We believe the basis behind low demand would be on investors’ unease over 100 per cent OFS offer pursued by denting selloff presumptions in the recently listed IPO, which failed to function on a listing day,” says Prashanth Tapse, the Vice president of Mehta Equities Ltd. 

“We recommend conservative investors to exit on listing day at whatever value they can make it, and if non-allotted investors wish to buy on a listing day, it is better to wait and watch for better-discounted pricing, while risk-takers may consider holding it as a high-risk high return with a long term perspective," adds Tapse .