IREDA IPO: What do GMP, subscription status suggest ahead of listing?
share allotment was finalised on Saturday, November 25. The company's equity shares are likely to be listed on stock exchanges BSE and NSE on November 29. Ahead of the IPO listing, let us check what the GMP and subscription status show: Analysts note a robust investor response to the IREDA IPO, suggesting that the surge in grey market sentiment may be attributed to the strong reception.
IREDA IPO GMP or grey market premium today is ₹10 per share, the same as yesterday and the day before. This indicates the IREDA share price is likely to list at a premium of 31.23 percent at ₹42. However, the GMP has reduced from ₹12 and ₹11 on November 23 and November 24, respectively.
'Grey market premium' indicates investors' readiness to pay more than the issue price. However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly. IREDA IPO has been subscribed to 38.80 times during its 3-day bidding process.
The public issue received bids for 1,827 crore shares against 47.09 crore shares on offer. The Qualified Institutional Buyers (QIB) quota was booked the most, 104.57 times, followed by the Non-Institutional Investors’ (NII) portion, which was subscribed to 24.16 times. Meanwhile, the retail investor category was bid 7.73 times and the employee portion was booked 9.8 times.
The ₹2,150.21 crore IPO of the PSU was open for subscription between November 21 and November 23 and the price band for the offer was set at ₹30-32 per share. Indian Renewable Energy Development Agency is a government company, which has a ‘miniratna’ status (Category-I). Incorporated in 1987, IRDEA is an experienced financial institution that has been actively
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