Avalon Technologies IPO: Avalon Technologies Ltd.’s initial public offering (IPO) has announced the allocation of shares, and now lucky allottees and market watchers are eagerly awaiting the company’s anticipated 18th April 2023 listing date. Shares of Avalon Technologies Ltd. are currently available at a premium of $10 in grey market after retreating from a double-digit to a single-digit premium earlier.
Avalon Technologies IPO GMP
Observers of the stock market claim that the grey market premium (GMP) for Avalon Technologies’ IPO today is Rs. 10, an increase of Rs. 5 from the GMP per share from yesterday. Market watchers argued that the steady growth of the Indian stock market, as evidenced by the rises in the Sensex, Nifty, and Bank Nifty during an eight-day stretch, can be linked to the increase in GMP. However, they insisted that due to investors’ lacklustre response, the grey market continued to view the public offering negatively because it received less than 100% subscription in all categories with the exception of QIBs.
What this GMP mean?
Market observers went on to add that Avalon Technologies IPO GMP today is ₹10, which means grey market is expecting that Avalon Technologies IPO listing price would be around ₹446 ( ₹436 + ₹10), which is at par with its price band of ₹415 to ₹436 per equity share. Market observers said that grey market is signaling that Avalon Technologies shares may have a par listing on share listing date.
However, stock market experts maintained that grey market sentiment shouldn’t be taken blindly as it is non-regulated and completely speculative. They advised investors to scan financials of the company as it reflects concrete fundamental picture of the company.
Avalon Technologies IPO got subscribed 2.34 times on strong response by QIB category investors. The retail portion of the public issue got subscribed 0.88 times whereas its QIB category got subscribed 3.77 times. The public issue got subscribed 0.43 times in NII segment.