Divgi TorqTransfer Systems IPO: What GMP signals ahead of share listing date

Divgi TorqTransfer Systems IPO GMP today

Market observers said that Divgi TorqTransfer Systems IPO GMP today is ₹35, which is ₹10 below from is Friday GMP of ₹45. They said that Divgi TorqTransfer Systems IPO GMP has been descending for the last two days as secondary market sentiments have remained weak for last two sessions last week. They went on to add that in last two days, Divgi TorqTransfer Systems IPO GMP has tumbled from ₹73 to ₹35, which is more than 50 per cent depreciation in this time. However, they maintained that despite heavy sell off in last two days, Divgi TorqTransfer Systems IPO GMP has remained in positive territory, which is a good signal. They said that grey market is trying to signal that Divgi TorqTransfer Systems IPO listing may be tepid but it is expected to give premium to the allottees.

Market observers maintained that Divgi TorqTransfer Systems IPO GMP has remained positive despite negative sentiments on Dalal Street, which is a good signal from the grey market.

What this GMP mean?

Market observers went on to add that Divgi TorqTransfer Systems IPO GMP today is ₹35, which means grey market is expecting that Divgi TorqTransfer Systems IPO listing would be around ₹625 ( ₹590 + ₹35), which is 6 per cent higher from Divgi TorqTransfer Systems IPO price band of ₹560 to ₹590 per equity share.

However, stock market experts advised Divgi TorqTransfer Systems IPO allottees to stick with their conviction developed after scanning the balance sheet of the company. They said that GMP is not an ideal indicator about the possible listing gain from an IPO as it is non regulated and completely speculative. They went on to add that GMP can be artificial as well because sometimes it involved even those who have high stake involved in the public issue.