Vijaya Diagnostic IPO (Initial Public Offering) will open for subscription on September 1, 2021 and will remain open for tender until September 3, 2021. ₹The public issue of 1,895.04 billion ₹522 tons ₹531. Before the subscription opening, however, the gray market began to signal about the public issue. According to market observers, Vijaya Diagnostic is IPO GMP (gray market premium) today ₹18. You said that 100 percent OFS and a higher rating didn’t go down well in the gray market.
Vijaya Diagnostic IPO GMP
As mentioned above, Vijaya Diagnostic shares are available in the gray market at ₹18 premium, which is almost half of Vijaya Diagnostic’s IPO gray market premium on Thursday. On Thursday was Vijaya Diagnostic IPO GMP ₹40 while it boiled down to it on Friday ₹35 to ₹40. In fact, Vijaya Diagnostic stocks were available at on Friday night ₹25 Premium on the gray market. As a result, Vijaya Diagnostics IPO GMP slipped after it became available for trading on the gray market. According to market observers, 100 percent OFS and a higher rating of the public issue have not been well received in the gray market and act as a “rejected” sentiment for the public issue.
What this GMP means
Market observers added that Vijaya Diagnostic IPO GMP ₹18, which means the gray market expects Vijaya Diagnostic to IPO at around ₹549 ( ₹531 + ₹18). With Vijaya Diagnostic’s IPO subscription still open, such a drop in GMP is like a “rejected” sentiment from the gray market. However, they said that the company’s financial metrics are just as important and if the public issue wins strong bids we can expect some increase in gray market interest in relation to that public issue.
Highlighting the company’s strong financial metrics; Abhay Doshi, Founder of UnlistedArena.com, said: “The Vijaya Diagnostic Center is a well known diagnostic chain in South India. Over 90 percent of sales are generated with walk-in customers, which helps them to reduce costs and improve operating metrics has developed well over the years, which is reflected in sales and profit growth. The net profit margin was 18.4 percent and the ROCE was 30.9 percent for fiscal 2020, which is commendable. “
However, Abhay Doshi added that the top group of ₹531, the price-earnings-profit is around 64x, which seems to be on the higher side, the problem is also purely OFS and the recent fiasco in the primary markets has upset the mood of investors, so that one is definitely on the subscription rush should pay attention.
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