Mumbai: The unofficial, grey market for stocks is indicating a strong listing for the just-closed Happiest Minds Technologies IPO. This could mean the investors in this may see their investments double on Thursday, when the company is expected to list on both the BSE and NSE.
On Tuesday evening, the current grey market premium (GMP) for the stock was hovering between Rs 140 and Rs 146, indicating a listing price of between Rs 306 and Rs 312 (that is, the IPO price of Rs 166 plus the GMP).
On September 9, when the Happiest Minds IPO application process closed, the offer was oversubscribed 151 times. This made it one of the most subscribed offers in over a decade. For hugely oversubscribed IPOs, the GMP usually shows an uptrend as the listing day nears. This value also depends upon the market conditions on the listing day, veterans of Dalal Street said. Successful IPO applicants were allotted their shares on Tuesday morning.
The Rs 702-crore IPO had raised Rs 316 crore from anchor investors just a day before it opened on September 7. And when the IPO application process closed, it had a book size of nearly Rs 58,300 crore, data from the exchanges said.The institutional part was subscribed over 77 times, the non-institutional part, also called the HNI or the high net worth investors’ portion, was subscribed more than 351 times, and the retail portion 71 times. Happiest Minds IPO was the second offer since the lockdown started in March.