Adani Wilmar IPO: The Initial Public Offer (IPO) of FMCG sector company Adani Wilmar has now closed after being open for three days. The Rs 3,600 crore IPO was subscribed 17.37 times till the last day, out of which retail investors bid 3.92 times their share. The strong jump in Adani Wilmar’s IPO subscription on the last day was also reflected in its gray market premium (GMP). According to experts watching the gray market, Adani Wilmar’s gray market premium saw a slight increase for the first time in almost a week on Tuesday. He said that the tremendous rally in the market on Tuesday has also played a major role in boosting the gray market sentiment of Adani Wilmar IPO.
According to market experts, Adani Wilmar is trading at a premium of Rs 30 in the gray market on Tuesday, which is Rs 28 more than yesterday’s premium of Rs 18. Experts say that there are two main reasons behind the increase in Adani Wilmar’s GMP – first, the boom in the market just before the Union Budget and second, the jump in IPO subscription on the last day.
He said that the stock market sentiment remained negative for almost two weeks, due to which the gray market premium of Adani Wilmar came down from around Rs 65 to around Rs 18 in a week. However, he added that if the market rally continues even after presenting the Budget, Adani Wilmar’s gray market premium could jump once again.
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What does this gray market premium mean?
Market experts say that GMP is an unofficial data, which gives an indication about the listing. Like Adani Wilmar’s IPO is trading at a gray market premium of Rs 30 today. This means that the gray market is expecting the Adani Wilmar IPO to be listed at around Rs 260 (Rs 230 + Rs 30), which is about 13 per cent higher than the upper price band of Rs 230.
However, experts also say that this is completely unofficial data and there is no accurate indicator about the listing. GMP also has nothing to do with the financial position of the company. In such a situation, experts warn that one should invest in IPO keeping in mind the fundamentals of the company as the gray market premium can change at any time.
Let us tell you that Adani Wilmar was established in 1999. It is a joint venture between Adani Group and Wilmar of Singapore. It sells oils and other food items under the Fortune brand. Earlier, six companies of Adani Group, Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone have been listed on the stock exchange.
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