Suraj Estate IPO: What GMP signals after announcement of listing date

livemint.com:

Suraj Estate IPO: Listing date of the initial public offering (IPO) of Suraj Estate Developers Ltd has been fixed on 26th December 2023. As per the information available on BSE website, Suraj Estate share price will list on BSE and NSE on 26th December 2023 in 'B' group of securities. Suraj Estate IPO listing will take place in a special pre open session during Tuesday deals this week.

"Trading Members of the Exchange are hereby informed that effective from Tuesday, December 26, 2023, the equity shares of Suraj Estate Developers Limited shall be listed and admitted to dealings on the Exchange in the list of 'B ' Group of Securities," BSE notice said. Meanwhile, after announcement of Suraj Estate IPO listing date, grey market has gone bearish on Suraj Estate shares. According to stock market observers, Suraj Estate share price is available at a premium of ₹18 in grey market today.

This means Muthoot Microfin IPO GMP (grey market premium) today is ₹18, which is ₹8 lower from Friday GMP of ₹26. Market observers maintained that grey market is signaling that Suraj Estate IPO GMP today is ₹18, which means Suraj Estate IPO listing price would be around ₹378 ( ₹360 + ₹18), which is 5 per cent higher from Suraj Estate IPO price band of ₹340 to ₹360 per equity share. So, grey market is signaling around 5 per cent listing gain for allottees of Suraj Estate IPO.

However, stock market experts maintained that grey market is not an ideal indicator to assess listing gain from an public issue. They said that grey market is non regulated and completely speculative. In fact, grey market has nothing to do with financials of the company.