IPO: know what is the advantage with a gray market premium

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According to gray market trackers, 4 out of the current five IPOs are active. E-commerce ventures Nykaa’s IPO closed today. It was subscribed 4.82 times. The IPO is pouring down on Dalal Street. Five firms would raise Rs 13,187.36 crore through this at the same time. Many individuals may be perplexed by the many IPOs and which one can be trusted the most. It may, however, be rectified using grey market premium and expert counsel. The public subscription period for FSN E-Commerce Ventures (Nayaka) and Fino Payments Bank’s initial public offering is currently open. SJS Enterprises, Sigachi, and PB Fintech, the operator of Policybazaar, are all set to open today.

Only four of the current five IPOs are active, according to grey market monitors. The IPO of FSN E-Commerce Ventures (Nayaka) finished today, according to the stock exchange, and it was subscribed 4.82 times till Friday, October 29. Its grey market shares command a premium of Rs 600, or 53.3 percent, over the Rs 1,125 upper price limit.

Ambareesh Baliga, an independent market analyst, has stressed Nykaa’s IPO as having the potential to deliver massive gains. “Nayaka (Beauty, Personal Care, and Fashion Products),” they argue, “is a high-growth industry that has risen significantly over time.” It has grown significantly in recent years, and values have risen as well.

Fino Payments Bank’s shares, on the other hand, are not traded on the grey market, according to the stock exchange. While its first public offering (IPO) was 51% subscribed till Friday, October 29. Despite good growth expectations, Jyoti Roy of Angel One feels that values have not justified the premium. “Fino Payments Bank has recorded a 46 percent CAGR (Compound Annual Growth Rate) in total income during the financial years 2019 and 21,” he stated. In addition, the company has made a profit of Rs 20 crore for the first time this year.