Aatmaj Healthcare IPO GMP (Grey Market Premium)

Aatmaj Healthcare IPO worth ₹38.40 crore, comprises entirely of a fresh issue of shares with no offer for sale (OFS) component by promoters and early investors. It is a fixed price issue and the price for the IPO has been fixed at ₹60 per share. The fresh issue portion entails the issue of 64 lakh shares which at the fixed IPO price of ₹60 per share is worth ₹38.40 crore. Since there is no OFS portion, the fresh issue portion is also the total size of the issue. Here it may be noted that while a fresh issue brings in fresh funds into the company, it also tends to be EPS and capital dilutive. On the other hand, the OFS is just a transfer of shares and hence it is not capital or EPS dilutive.

The stock of Aatmaj Healthcare IPO has a face value of ₹5 and bidders can only bid in minimum lot size of 2,000 share each, entailing a minimum investment of ₹120,000 in the IPO at the fixed IPO price of ₹60 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs, NIIs can bid for minimum of 2 lots of 4,000 shares entailing an investment of ₹240,000. The table below captures the lot sizes permissible.

As per the terms of the offer minimum of 5.02% of the total offer size or 321,000 shares will be reserved for the market maker. The market maker shall use the funds to provide buy and sell quotes in the market post listing to keep the counter liquid. Of the balance shares, a minimum of 50% will be allocated to retail investors while a maximum of 50% will be allocated to the non-retail investors. Rikhav Securities Ltd will act as the market maker for the SME IPO of Aatmaj Healthcare Ltd.

The issue opens for subscription on 19th June 2023 and closes for subscription on 21st June 2023 (both days inclusive). The basis of allotment will be finalized on 26th June 2023 and the refunds will be initiated on 27th June 2023. In addition, the demat credits are expected to happen on 29th June 2023 and the stock is scheduled to list on 30th June 2023 on the NSE SME segment. This is the segment, in contrast to the mainboard, where IPOs of small and medium enterprises (SMEs) are incubated. The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Aatmaj Healthcare Ltd, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be in negative, which means the stock would list at a discount to the issue price.

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 been observed 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 of the stock would be.

GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Aatmaj Healthcare IPO for which the data is available.