Archean Chemical IPO: What GMP Reports After Subscription Closes

IPO of Archean Chemical: Bidding for Archean Chemical Industries Limited’s initial public offering (IPO) ended on Friday and bidders are now eagerly awaiting the award date for Archean Chemical’s initial public offering, which is most likely on the 16th. November 2022. In three days, from November 9 to 11, 2022, the public stake is worth 1,462.31 crore was subscribed 32.23 times while its QIB portion was subscribed 48.91 times. The public issue received 9.96 times the subscription in the retail segment. Meanwhile, after the trend reversal in Friday’s session, the gray market turned very bullish on the scrip. According to market watchers, Archean Chemical Industries Limited shares are available at a premium of 80 on the gray market today.

Archean Chemical IPO GMP Today

Market watchers said Archean Chemical IPO GMP (grey market premium) is today 80, which is 14 more than his Friday GMP of 66. They said Archean Chemical IPO GMP rose after sentiment changed on Dalal Street. They added that the strong sentiments on Dalal Street trickled down to the gray market, leading to an increase in the stock’s gray market premium. Market watchers argued that if the bullish trend continues on Dalal Street, we can expect a further rise in Archean Chemical’s share price in the gray market.

What does this GMP mean?

Market watchers said Archean Chemical IPO GMP is today 80, which means the gray market expects the Archean Chemical IPO to be around 487 ( 407 + 80), which is about 20% higher than its price range of 386 to 407 each. They said the public issuance received a strong response from investors and that also works in favor of the gray market public issuance.

However, stock experts argued that the gray market should be taken blindly. It is non-regulatory and completely speculative. So there is a high chance that GMP is an artificial number as it involves even those who have a high interest in the public issue. They advised bidders to scan the company’s balance sheet and rely on concrete company fundamentals.

Catch all the trade news, market news, breaking news and latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less