Nuvoco IPO GMP Views: After trading at ₹5 Premium in the gray market from Monday to Thursday, Nuvoco Vista’s IPO gray market premium (GMP) has gone into negative territory today. Nuvoco Vista’s IPO GMP today is minus ₹10. According to market observers, Nuvoco Vista’s gray market price moving into negative territory is an indication that the public offering could potentially have an unattractive and tepid listing if market sentiment continues on Monday, the day Nuvoco Vista is listed remains restless.
Nuvoco Vistas gray market premium
According to market watchers, Nuvoco Vista’s IPO was GMP on Friday ₹2 – ₹3 down from Monday to Thursday GMP ₹5. So, Nuvoco Vistas GMP going negative today is reflecting a par listing or listing at a discounted price. The market watchers said that this decline in Nuvoco Vista’s IPO GMP was also due to the negative to sideways sentiment of the market. When the market opens on the higher side, we can expect a tepid quote, rather a quote at a discounted price.
What this GMP means
Market watchers added that the gray market premium is an unofficial indication of the stock market growth expected by the gray market. Nuvoco Vista’s IPO GMP today at minus ₹10 means that the gray market will list Nuvoco Vistas shares at. expected ₹560 ( ₹570 – ₹10) – means that stocks can be listed at ₹10 discount on Monday.
Talking about the expected listing of Nuvoco Vistas shares; Abhay Doshi, Founder of UnlistedArena.com, said, “As the primary market prepares for listing, most IPOs face half-hearted listing caused by a correction in the broader market and expensive valuations of the IPOs. Nuvoco Vistas could as well If you don’t do this, you will be spared from such a trend, since this edition was also expensive at 17x EV / EBITDA. The listing may not be fancy and a discount listing cannot be ruled out either. “
Propose to bidders to look at Nuvoco Vistas fundamentals instead of gray market premium; Astha Jain, research analyst at Hem Securities, said, “The company brings the issue in a price range of ₹560-570 per share for post-issue EV / EBIDTA multiple of 16 based on EBIDTA for FY21. The company is the largest cement producer in East India in terms of total capacity with market leading brands and experienced individual promoters and a professional management team with strong future potential. “
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