IREDA IPO: GMP jumps on strong subscription status. Should you apply?

livemint.com:

IREDA IPO: The initial public offering (IPO) of Indian Renewable Energy Development Agency Ltd opened for subscription on Tuesday. Three day subscription of the public issue will end on 23rd November 2023, which means investors have just one day in hand to apply for this public offer. As per the IREDA IPO subscription status, the public issue has been subscribed 4.56 times after two days of bidding.

Meanwhile, shares of the state-owned company are gaining momemtum in unlisted stock market. According to market observers, shares of IREDA Ltd are available at a premium of ₹10 in grey market today, which is ₹3 higher from its yesterday's GMP of ₹7. As per the market observers, IREDA IPO grey market premium (GMP) today is ₹10, which is ₹3 higher from its previous days GMP of ₹7.

They said that grey market has gone bullish on IREDA shares despite mixed trends on Dalal Street and global market. Observers said that Indian PSU company has received strong response from investors in first two days of bidding and that has led to rise in sentiments in grey market. However, they went on to add that attradctive valuations is one of the major reasons that is attracting attention of grey market players towards IREDA shares.

Also Read: Why Tata Technologies IPO applicants should apply for IREDA IPO too — explained with GMP, other details But, stock market experts advised investors to avoid taking GMP so seriously. They said that GMP is completely speculative as it is non regulated. They said that it has no connect with balance sheet of the company.