The Grey Market Premium (GMP) for Quality Power Limited’s Initial Public Offering (IPO) has plummeted to zero, signaling a lack of premium over the issue price as the subscription period nears its close.
The IPO, which opened on February 14 and is set to conclude today, has witnessed a moderate response from investors.
The GMP for Quality Power IPO initially surged to ₹135 on February 8 but has steadily declined in recent days, now standing at nil.
This means that shares are trading at their issue price of ₹425 without any added premium in the grey market. The decline in GMP is often an indicator of reduced enthusiasm among investors or broader market fluctuations impacting demand.
As of the morning of February 18, the IPO had been subscribed 86%, with the retail investor category showing a subscription of 1.19 times and the non-institutional investor segment at 1.12 times. Despite these figures, the lack of a grey market premium raises concerns about the stock’s potential listing performance.
Quality Power’s IPO aims to raise ₹858.70 crores, comprising a fresh issue of ₹225 crores and an offer for sale (OFS) worth ₹633.70 crores. The price band has been set between ₹401 and ₹425 per share, with the minimum lot size for retail investors being 35 shares.
The allotment of shares is expected to be finalized on February 19, followed by the anticipated listing on the stock exchanges on February 21.
Market analysts suggest that the stock’s performance on the debut day will largely depend on broader market sentiment and investor confidence in the company’s growth potential.
The fall in GMP suggests cautious sentiment among investors, possibly due to market volatility or valuation concerns.
While some analysts believe the company’s fundamentals remain strong, others argue that the IPO pricing may have limited immediate upside for investors.
With the subscription window closing soon, all eyes will be on the final subscription numbers and the market’s reaction as Quality Power prepares for its stock market debut.
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