PB Fintech IPO: What GMP Reflects After Share Allotment Announcement

PB Fintech IPO GMP

PB Fintech IPO Gray Market Premium (GMP) Today, According to Market Observers 55, which is 13 more than yesterday’s gray market premium 42. Market observers said that after plaguing the about 150 levels 40 in the past week; This is the first time the price of PB Fintech Gray Market has increased. He added that the increase is noticeable as it happened despite a sideways trend with weak bias in the market. He added that the recent market sentiment has also played a significant role in the performance of policy market stocks in the gray market.

what does this gmp mean

Market observers said the gray market premium is nothing but the listing profit expected by the gray market. So, today PB Fintech IPO on GMP 55 means gray market is expecting this public issue to be listed 1035 ( 980+ 55), about 5 percent more than its price band from 940 980 per equity share.

However, stock market observers said the GMP is not an ideal indicator of the fate of the IPO. He advised the investors to look at the financial position of the company and said that the balance sheet of the company gives an accurate picture of the business.

Speaking on the fundamentals of PolicyBazaar; Aastha Jain, Research Analyst, Hem Securities said, “The company is bringing this issue at the price band. 940 to 980 per share on FY23E and FY24E at 23x and p/s multiplier of 17x. The company has created consumer-friendly brands offering wide choice, transparency and convenience. Being associate partner to the insurer and lending partners the company has high renewal rates which provides clear visibility into the future business and provides better economics. The company also benefits from economies of scale with lower operating costs and capital requirements.”

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.