AccelerateBS India IPO: What GMP, subscription status reflects about SME issue

livemint.com:

AccelerateBS India IPO: The initial public offer (IPO) of AccelerateBS India Limited opened for subscription on 6th July 2023 and it will remain open for bidding till 11th July 2023. After two days of bidding, the public issue, which has been proposed for listing on BSE SME exchange, has received strong response by retail investors. As per the AccelerateBS India IPO subscription status, the BSE SME IPO has been subscribed around 3.9 time while its retail portion has been subscribed more than 4.5 time.

The fixed price issue has been offered at ₹90 per share. According to market observers, shares of AccelerateBS India Ltd are available at a premium of ₹18 in grey market today. Market observer said that AccelerateBS India IPO grey market premium (GMP) today is ₹18, which is ₹2 lower from its Friday GMP of ₹20.

They said that the dip in AccelerateBS India IPO GMP can be attributed to the sell off on secondary market. They said that despite selling on secondary market, AccelerateBS India IPO GMP remained in demand as ₹2 dip has come after continuous rise in GMP for the last two days after opening of AccelerateBS India IPO subscription. Observers went on to add that AccelerateBS India IPO GMP today is ₹18, which means grey market is expecting that AccelerateBS India IPO listing price would be around ₹108 ( ₹90 + ₹18), which is 20 per cent higher from the fixed issue price of ₹90 apiece.

However, stock market experts maintained that GMP is not an ideal indicator for assessing expecting listing premium from any IPO. They went on to add that grey market is non-regulated and completely speculative. One should stick to the basics and rely on the balance sheet of the company.