SBFC Finance IPO: Latest GMP signals strong debut of shares on listing date

livemint.com:

SBFC Finance IPO: Listing date of the initial public offering (IPO) of SBFC Finance Limited can be announced any time today. As per the information available on BSE website, equity shares of SBFC Finance Limited shall be listed and admitted to dealings on the Exchange in due course. Afer BSE notice in regard to SBFC Finance IPO listing date published on Friday last week, Dalal Street observers are expecting share listing date today and the likely date for SBFC Finance IPO listing date is 16th August 2023.

Meanwhile, ahead of SBFC Finance IPO listing date announcement, grey market continues to remain strong in regard to the the public issue worth ₹1025 crore. According to market observers, shares of SBFC Finance Limited are available at a premium of ₹30 in grey market today. Market observers said that SBFC Finance IPO grey market premium (GMP) today is ₹30, which is ₹4 higher from its Friday GMP of ₹26.

Market observers said that issue was fairly priced and it has received strong response by investors. That's why grey market is still sending positive signals in regard to SBFC Finance IPO listing price. They said that SBFC Finance IPO GMP today is ₹30, which means grey market is expecting that SBFC Finance IPO listing price would be around ₹87 ( ₹57 + ₹30), which is more than 50 per cent of the SBFC Finance IPO price band of ₹54 to ₹57 per equity share.

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.