Mankind Pharma IPO: What GMP signals after announcement of share allotment?

Mankind Pharma IPO GMP today

Market observers said that Mankind Pharma IPO grey market premium (GMP) today is ₹100, which is ₹18 higher from its yesterday’s GMP of ₹82 per equity share. Observers went on to add that current rise in Mankind Pharma IPO GMP today can be mainly attributed to trend reversal at Indian stock market. They said that in last seven out of eight sessions, Indian secondary market has closed higher that speaks volume about the market mood. As market mood will have major role in Mankind Pharma IPO listing price. market observers said that Mankind Pharma IPO GMP has hit triple digit for the first time after making its debut in grey market. So, this is the best premium anticipated by the grey market after the launch of this public issue.

What this GMP mean?

Market observers said that Mankind Pharma IPO GMP today is ₹100, which means grey market is expecting that Mankind Pharma IPO listing price would be around ₹1180 per equity share, which is around 9 per cent higher from Mankind Pharma IPO price band of ₹1,026 to ₹1,080 per equity share. They said that grey market is trying to signal that Mankind Pharma IPO listing positive. However, the allottees should not expect whopping return on the listing date from this public offer.

However, stock market experts maintained that grey market is not an ideal indicator about the success of failure of the IPO. They said that one should stick to the basics and rely on the financials of the company as it gives concrete fundamental picture of the company and its business. They went on to add that GMP is non-regulated and it completely speculative. Sometimes, it involves even those who have high stake involved in the IPO. Therefore, sometime GMP can be artificial as well. So, one should not take GMP as hard and fast indicator for the expected listing premium.