Kaynes Technology IPO: What GMP signals after finalisation of share allotment

According to market observers, after finalisation of share allotment, Kaynes Technology share price has surged in grey market despite weak signals from the secondary market.

Kaynes Technology IPO GMP today

Market observers said that Kaynes Technology IPO GMP today is ₹235, ₹25 higher from its Friday GMP of ₹210 per equity share. They said that grey market sentiments have risen in regard to Kaynes Technology IPO, which is big development in regard to the public issue. They said that Kaynes Technology IPO GMP was at around ₹125 when the public issue had opened. Hence, its grey market premium has surged almost 100 per cent in last one week.

What this GMP means?

Market observers said that Kaynes Technology IPO GMP today is ₹235, which means grey market is expecting that Kaynes Technology IPO listing would take place around ₹822 ( ₹587 + ₹235), which is around 40 per cent higher from its issue price of ₹559 to ₹587 per equity share. They said that grey market is hinting 40 per cent listing premium when market sentiments are not so encouraging. They expected further rise in grey market sentiment once there is trend reversal on Dalal Street.

However, stock market experts maintained that GMP is not an ideal indicator about listing premium as it is a non-regulated speculative number, which has nothing to do with balance sheet of the company. They said that one should rely on the financials of the company as it gives concrete fundamental picture of the company's business and its growth outlook. They advised allottees to stick with their conviction that prompted them to invest in this public issue.