IPO GMPs: The Scoda Tubes IPO and the Prostarm Info Systems IPO currently available on the mainboard have received a favorable response from investors. The Prostarm Info Systems IPO will wrap up today, Thursday, May 29, whereas the Scoda Tubes IPO has one more day of bidding left, which is tomorrow. The allotment status for the Leela Hotels IPO and the Aegis Vopak Terminals IPO, which closed their offerings yesterday, will be announced today.
According to Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, the Grey Market Premium (GMP) for Scoda Tubes’ IPO stands at approximately ₹18 per share, suggesting a likely listing price of ₹158 per share, which is about 13% higher than its initial offering price of ₹140 per share. The demand for its products remains robust within both the infrastructure and industrial sectors.
In addition, the company’s revenue has doubled over the past two years, and its operating margin has increased by 1000 basis points to 15% during that period. On the downside, the company faces significant competition in a market dominated by larger players vying for substantial market share. Furthermore, the company’s operating cash flow (OCF) has been negative for fiscal years 2022, 2023, and 2024, which is a concerning indicator.
IPO GMPs
Let’s take a look at the grey market premium trends:
Scoda Tubes IPO GMP today is +22. This indicates Scoda Tubes share price is trading at a premium of ₹22 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Scoda Tubes share price is indicated at ₹162 apiece, which is 15.71% higher than the IPO price of ₹140.
In light of the grey market activities observed over the past week, today’s IPO GMP shows an upward trend, indicating a promising listing. The minimum GMP stands at ₹16.00, whereas the maximum GMP reaches ₹22.00, as per insights from experts at investorgain.com.
Prostarm Info Systems IPO GMP today is +24. This indicates Prostarm Info Systems share price is trading at a premium of ₹24 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Prostarm Info Systems share price is indicated at ₹129 apiece, which is 22.86% higher than the IPO price of ₹105.
After analyzing the grey market activities from the last 10 sessions, the current IPO GMP is showing an upward trend, indicating a robust listing is anticipated. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹25.00, as per the experts at investorgain.com.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
IPO Details
Scoda Tubes IPO consists solely of a new issuance of equity shares, totaling up to ₹220 crore without any offer for sale (OFS) element.
The funds raised from this issue will be allocated towards increasing the production capacity of seamless and welded tubes and pipes, meeting working capital needs, and for general corporate purposes.
Monarch Networth Capital serves as the lead manager for the IPO’s book-running process.
Prostarm Info Systems IPO consists of a new issuance of 1.6 crore equity shares, each with a face value of ₹10, conducted via the book-building method.
Prostarm Info Systems plans to allocate ₹72.50 crore of the total funds raised from the IPO for financing the company’s capital necessities, ₹17.95 crore for debt repayment, and the remainder will be directed towards pursuing inorganic growth through unannounced acquisitions and other strategic efforts, as well as for general corporate activities.
Choice Capital Advisors Pvt Ltd serves as the book-running lead manager for the Prostarm Info Systems IPO, whereas Kfin Technologies Limited acts as the registrar for this issue.
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