Grey Market Premium of Star Health & Allied Insurance IPO

The Rs.7,249 crore Star Health & Allied Insurance IPO consisted of a fresh issue of Rs.2,000 crore and an offer for sale at Rs.5,249 crore. The issue has been priced in the band of Rs.870 to Rs.900 per share and the price will be discovered post the book building.

The issue opens for subscription on 30-Nov and closes for subscription on 02-Dec. The stock is scheduled to list on 10th December. The GMP trading normally starts about 4-5 days prior to IPO opening and continues till the listing date.

However, there are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP. Secondly, the extent of subscription also has a deep impact on the GMP as it is indicative of investor interest in the stock.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has proved to be a good informal gauge 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.

While the GMP is just an informal approximation, it has been generally seen to be a good mirror of the real story. More than the actual price, it is the GMP trend over time that really gives the insights about the stock being upgraded or downgraded over a period of time and which direction the wind is blowing.
 

Here is a quick GMP summary for Star Health & Allied Insurance over the last 5 days.