Aatmaj Healthcare IPO GMP (Grey Market Premium)

Aatmaj Healthcare IPO GMP
Aatmaj Healthcare IPO GMP

by Tanushree Jaiswal Last Updated: Jun 30, 2023 - 12:21 pm 2.5k Views

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.

Application Lots Shares Amount
Retail (Min) 1 1000 120,000
Retail (Max) 1 1000 120,000
HNI (Min) 2 2000 ₹240,000

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.

Date GMP
30-June-2023 ₹3.5
29-June-2023 ₹4
28-June-2023 ₹3
27-June-2023 ₹3
26-June-2023 ₹11
25-June-2023 ₹10
24-June-2023 ₹10
23-June-2023 ₹10
22-June-2023 ₹11
21-June-2023 ₹11
20-June-2023 ₹12
19-June-2023 ₹11
18-June-2023 ₹10
17-June-2023 ₹8
16-June-2023 ₹4
15-June-2023 ₹4
In the above case, the GMP trend shows that the grey market premium has opened at around ₹4, but now down by ₹3.5 on the second day on which GMP data is available. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription and also watch the progress, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, Aatmaj Healthcare Ltd has shown moderate traction in the grey market.

If you consider the fixed price of the IPO of Aatmaj Healthcare Ltd at ₹60, then the likely listing price is being signalled at around ₹64 per share as per the GMP indicator on 16th June 2023. This is dynamic and keeps changing. One data point to track will be the subscription update on the stock as that would chart the GMP course.

The GMP of ₹4 on the fixed IPO price of ₹60 indicates a listing premium of a moderate 6.67% for Aatmaj Healthcare Ltd over the listing price. That pre-supposes a listing price of approximately ₹64 per share, when Aatmaj Healthcare Ltd lists on 30th June 2023. Of course, these are approximations, so you must keep a margin of safety. One needs to observe the trend of GMP closely as that gives the best hints on listing status. Look at the time series trend than on numbers.

Aatmaj Healthcare Ltd, is an SME IPO on the NSE which is opening for subscription on 19th June 2023. Aatmaj Healthcare Ltd, was incorporated in 2014 and it runs multi-specialty hospitals under the brand name of Jupiter Hospitals. The intent of the hospital is to provide quality healthcare at affordable rates and it currently provides in-patient and outpatient healthcare services through its network which is predominantly located in the state of Gujarat. It has an aggregate bed capacity of 130 beds and has treated more than 17,000 patients, which includes over 13,000 OPD patients. The group provides a complete suite of check-ups including haemoglobin check, lipid profile check, renal profile, blood sugar, ESR, MCH etc. It also does more complex profiles like the liver profiles.

In addition, the hospital also specializes in nephrology, uro-surgery, and vascular surgery.  On the orthopaedics front, the hospital handles joint replacement surgery, post trauma care; apart from obstetrics, gynaecology and neuro and plastic surgery.  Many of these are common problems these days with changing lifestyles. The fresh funds will be used for prepayment of debt, purchase of hospital equipment and for working capital needs. The issue is lead managed by Nirbhay Capital Services Private Limited, while Link Intime India Private Ltd will be the registrars to the IPO.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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