Rainbow Children’s Medicare IPO: Subscription for the public offering of Rainbow Children’s Medicare ended on April 29, 2022 and now bidders and market watchers are eagerly awaiting the announcement of the stock grant date, which is most likely May 5, 2022. According to Rainbow Children’s Medicare IPO subscription status, worth public spending €1595 crore was drawn 12.43 times in 3 days with bids while the retail share was drawn 1.38 times. Meanwhile, the gray market is reacting strongly in favor of the public offering. According to market observers, shares of Rainbow Children’s Medicare are available at a premium of €33 today in the gray market.
Rainbow Children’s Medicare IPO GMP
According to market watchers, Rainbow Children’s Medicare IPO is gray market premium (GMP) today €33, that is €7 higher from its Friday night GMP of €26. According to market observers, the increase in subscription status on the last bid day could be a possible strong reason for such a huge increase in Rainbow Children’s Medicare IPO GMP today. They added that in such a weak secondary market, bidders reacted strongly on the final day of the public offering’s subscription date. Therefore, the gray market had to react positively and did exactly what market watchers expected. Market watchers added that much will depend on market sentiment. If there is a trend reversal on Dalal Street, then Rainbow Children’s Medicare stock price can be expected to see another uptrend in the gray market.
What does this GMP mean?
Market observers claimed that the gray market premium means the expected listing profit from the public offering. Like today Rainbow Children’s Medicare IPO is GMP €33, it means the gray market expects Rainbow Children’s Medicare to be listed on the IPO €575 ( €542+ €33), which is around 6 percent higher than its price range of €516 to €542 per share.
However, stock market experts said that GMP is unofficial and unregulated data that cannot be blindly relied on. They said GMP has nothing to do with the company’s finances. The gray market even involves those who have a high stake in the public affairs. So the gray market data can be artificial. So, one should look at the company’s balance sheet, which gives a concrete picture of the fundamentals of public affairs.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint.
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