It is anticipated that shares of Mankind Pharma Limited will begin trading on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) as early as tomorrow, May 9th, 2023. Lucky allottees and market investors are already calculating the listing premium they will receive from the upcoming Mankind Pharma IPO.
The good news is that those allottees and market watchers are not alone. Even though Dalal Street was down on Friday, the grey market price (GMP) for Mankind Pharma’s IPO skyrocketed today. Market watchers estimate that one equity share in Mankind Pharma Limited currently sells for a premium of 103 yen.
Today marks the launch of Mankind Pharma’s first public offering on the GMP.
Compared to yesterday, the GMP for Mankind Pharma’s initial public offering (IPO) increased by 3 points, landing at 103. The Mankind Pharma IPO GMP reportedly rose today despite a drop-down in secondary markets on Friday, with market watchers attributing the decline to the fact that the weakness on Dalal Street was caused by MSCI’s rebalancing of the HDFC twins.
Despite the sell-off caused by the HDFC twins, auto and a few other stocks held their own. They speculated that the success of the Mankind Pharma IPO on the grey market was due in part to this development.
Exactly what does this GMP stand for?
The grey market has set the expected listing price for the Mankind Pharma IPO at roughly 1183 (1080 + 103), which is a 9.50% premium above the initial public offering price range of 1026 to 1080 per equity share.
The stock listing of the firm that produces both Manforce and Prega News has been signaled positively by the grey market, so a lucky allottee can expect a profit, but it won’t be a huge one.
Grey market participants include individuals with a substantial stake in the public issue, according to stock market analysts, making them a poor indication of the predicted listing premium. They further said GMP is unregulated and based solely on speculation.
Therefore, GMP of an IPO is often artificially inflated or deflated. Therefore, one should not stray too far from first principles and instead focus on the company’s balance sheet and financial specifics.