Equity indices in India are soaring to new highs. 8 main board IPOs open for subscription in week 8 in case of favorable market conditions. Investors are looking for gains on the listing day as most of the recent IPOs have performed well.

Gray market premium can be used for this. A high gray market premium indicates a potential listing gain for an IPO. Gray market premiums for four of the main board IPOs starting next week are high. Let's look at these in detail.

Gray market premium


 Gray market premium is one factor that influences initial share sales. Gray market premium refers to how much premium investors are willing to pay over the issue price. Gray market is an unofficial market where stock transactions take place before listing on stock exchanges. Trading of shares in the gray market starts a few days before the IPO. Trading will continue till the listing date.

Happy Froggings


 Established in 1979, Happy Forgings Limited is a manufacturer of heavy forgings and highly machined components. The Happy Frogings IPO consists of new shares and an offer for sale. 400 crore worth of new shares and 71.59 lakh shares through offer for sale.

The IPO has been priced in a price band of Rs 808-850 for the Rs 2 face value shares. The subscription starts on December 19. You can apply till 21st.


 A lot of 17 shares can be applied for. 13,736 less for investors for this

Suraj Estate Developers


 Suraj Estate Developers is a real estate construction company. The company has completed 42 projects in South Central Mumbai region. Suraj Estate's IPO involves 1.11 crore new shares. The company plans to raise Rs 400 crore through the IPO. The IPO price level is in the range of Rs 340-360. The IPO subscription will start on December 18 and will end on December 20.

Through the IPO, the company aims to clear its debt of Rs 285 crore and use Rs 35 crore to buy land in Mumbai. Apply for a lot consisting of 41 shares. It requires a minimum of Rs 13,940. Suraj Estate Developments is trading at a premium of Rs 65 in the gray market. According to this, there is a possibility of listing the stock at Rs.415. This will give a listing gain of 18 percent.

Muthoot microfinance 


 Muthoot Microfin,a microfinance company under the Muthoot Group, has fixed the price band of the Muthoot Microfin IPO issue at Rs 277 to Rs 291.

The company plans to raise Rs 960 crore through the IPO. The company will utilize the amount towards future capital requirements of Muthoot Microfin. The IPO consists of 2.61 crore new shares and 69 lakh shares sold by existing shareholders through an offer for sale of shares.


 A minimum of 51 shares can be applied for IPO. Retail investors need a minimum of Rs 14,127 per bid. On Friday, the stock was trading at a premium of Rs 88 in the gray market. Based on the current gray market premium, the stock is likely to list at Rs 379 and have a listing gain of 30 per cent.

Jaipur-based jewelery retail company Motison Jewelers is all set to raise Rs 151 crore through an IPO. The IPO subscription will be from December 18 to 20. The objective of the IPO is to clear the debt liability of Rs 58 crore and raise working capital of Rs 71 crore. The price band of the stock has been set at Rs 52-55.


 Apply from one lot of 250 shares. A minimum of 13000 rupees is required. Motison Jewelers is trading at a premium of Rs 100 in the gray market. The stock is likely to be listed at Rs 155. This is a listing gain of 180 percent.

Can the gray market cheat the premium?


 Investors should note that the gray market premium may not reflect the actual listing price. Gray market trading is a transaction between individuals. Also, since it is not an official one, it is not easy to check the veracity of the price. There is also a possibility of the gray market premium falling before listing. The possibility of using the gray market premium to attract major investors cannot be ruled out.


 Other IPOs


 * RBZ Jewelers IPO subscription will be held from 19th to 21st December. The price range is between Rs.95 to Rs.100.


 * Cardo Brands Marketing Limited's IPO subscription date is December 19-21. The price band is between Rs 266 to Rs 280.


 * Azad Engineering IPO will be held from December 20-23. The price range is Rs 499 to Rs 524.


 * Innova Captab Limited IPO subscription date is 21st to 26th December. 426-448 in the price range,


 notice

The above article is for study purpose. Before taking investment decisions in this regard, the advice of a financial expert can be sought. Investing in stock market is subject to risk of loss. Take investment decision at your own risk only. Granium Information Technologies and the author are not responsible for any profit or loss that may occur based on the decision taken after reading the article.