Aether Industries IPO GMP
The Aether Industries IPO issue opens for subscription on 24th May and closes for subscription on 26th May. The IPO consists entirely of an offer for the sale of Rs.181.04 crore by the promoters and PE investors. The issue has been priced in the band of Rs.610 to Rs.642 per share and the IPO allotment price will be discovered post the book building process completion.
Check IPO Allotment Status of Aether Industries IPO on May 31st. The stock is scheduled to list on 3rd June. The GMP trading normally starts about 4-5 days prior to IPO opening and continues till the listing date.
Aether Industries IPO GMP
| Date | GMP |
|---|---|
| 01-Jun-22 | Rs.15 |
| 31-May-22 | Rs.15 |
| 28-May-22 | Rs.10 |
| 27-May-22 | Rs.10 |
| 26-May-22 | Rs.10 |
In the above case, the GMP trend shows that the grey market premium has dropped down from Rs.32 per share to Rs.8 per share; over the last 3 days. Of course, we have to wait for the actual subscription numbers to flow in. But, clearly, this shows that this is not a positive signal.
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If you consider the upper end of the price band of Rs.642 as the indicative price, then the likely listing price is being signaled at around Rs.650 per share (by adding the GMP premium to the upper end of the price band). One data point to track will be the subscription update on the stock as that would chart the GMP course from here.
The GMP of Rs.8 on a likely upper band pricing of Rs.642 indicates a listing premium of a very robust 1.23% over the listing price. That presupposes a listing price of approximately Rs.650 per share, when
Aether Industries actually lists on 03rd June 2022. Market conditions and the extent of subscription have a deep impact on the GMP as it is indicative of investor interest in the stock.
We should always remember that GMP is not an official price point, but just an informal price point. However, in most cases, it has proved to be a good informal indicator of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance would be.
The catch is that this can grey market price can still keep changing depending on how the subscription pans out once the actual issue opens. That is why the trend of the GMP is as critical as the quantum of GMP.
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