Essen Speciality Films IPO GMP (Grey Market Premium)

Essen Speciality Films IPO GMP
Essen Speciality Films IPO GMP

by Tanushree Jaiswal Last Updated: Jul 05, 2023 - 11:29 am 3.3k Views

Essen Speciality Films IPO worth ₹66.33 crore, comprises of a fresh issue and an offer for sale (OFS) by promoters and early shareholders. The price band has been fixed in the range of ₹101 to ₹107. The fresh issue portion entails the issue of 46.992 lakh shares which at the upper end of the price band at ₹107 is worth ₹50.28 crore. The OFS portion entails the issue of 15 lakh shares which at the upper end of the price band at ₹107 is worth ₹16.05 crore. Overall, the IPO entails the issue of 61.992 lakh shares, which at the upper price band of ₹107 per share works out to total issue size of ₹66.33 crore.

The stock of Essen Speciality Films IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 1,200 share each, entailing a minimum investment of ₹128,400 in the IPO at the upper end of the price band of ₹107 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 2,400 shares entailing an investment of ₹256,800. The table below captures the lot sizes permissible.

Application Lots Shares Amount
Retail (Min) 1 1200 ₹128,400
Retail (Max) 1 1200 ₹128,400
HNI (Min) 2 2400 ₹256,800

As per the terms of the offer, 50% of the net offer is reserved for the qualified institutional buyers (QIBs), 15% of the offer is reserved for the HNI / NII investors and the balance 35% is reserved for the retail investors. It is a Book Built issue with the price band and the final price will be discovered through book building process. SMC Global Securities Ltd will act as the market maker for the SME IPO of Essen Speciality Films Ltd. The company has set aside 310,800 shares for the market maker. Here is the allocation design.

QIB Shares Offered Not more than 50.00% of the Net offer
NII (HNI) Shares Offered Not less than 15.00% of the Offer
Retail Shares Offered Not less than 35.00% of the Offer

The issue opens for subscription on 23rd June 2023 and closes for subscription on 27th June 2023 (both days inclusive). The basis of allotment will be finalized on 03rd July 2023 and the refunds will be initiated on 04th July 2023. In addition, the demat credits are expected to happen on 05th July 2023 and the stock is scheduled to list on 06th July 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 Essen Speciality Films 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 Essen Speciality Films IPO for which the data is available.

Date GMP
5-July-2023 ₹56
4-July-2023 ₹50
3-July-2023 ₹52
2-July-2023 ₹52
1-July-2023 ₹52
30-June-2023 ₹52
29-June-2023 ₹50
28-June-2023 ₹52
27-June-2023 ₹50
26-June-2023 ₹50
25-June-2023 ₹48
24-June-2023 ₹48
23-June-2023 ₹44
22-June-2023 ₹41
21-June-2023 ₹40
20-June-2023 ₹40
19-June-2023 ₹40
18-June-2023 ₹50
17-June-2023 ₹50
16-June-2023 ₹35
15-June-2023 ₹25

In the above case, the GMP trend shows that the grey market premium has opened at around ₹25, but has up by ₹56. 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, Essen Speciality Films Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the IPO of Essen Speciality Films Ltd at ₹107, then the likely listing price is being signalled at around ₹142 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 ₹35 on the upper end of the book built IPO price of ₹107 indicates a listing premium of a healthy 32.71% for Essen Speciality Films Ltd over the listing price. That pre-supposes a listing price of approximately ₹142 per share, when Essen Speciality Films Ltd lists on 06th July 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.

Essen Speciality Films  Ltd was incorporated in 2002. It manufactures and exports specialized plastic products predominantly in the home furnishing and the home improvement segments. Its main customers include some of the key multinational retail chains like IKEA, Wal-Mart, Kmart, Kohl, Kroger, and Bed, Bath & Beyond. Essen offers bath area accessories, artificial plants and flowers, storage, and organization units. It has a diverse customer base across a gamut of industry groups. They comprise of departmental stores, discount stores, retailers, hypermarkets, home improvement stores etc.

Essen Speciality Films also supplies directly to select global importers and exporters. It services clients in more than 24 geographies including China, UK, Saudi Arabia, US, Qatar, Germany, Italy, Canada, New Zealand, Spain, Belgium, Austria, Mexico and many more. The fresh funds will be used for prepayment of loans and working capital needs. The issue is being lead managed by GYR Capital Advisors Ltd while Bigshare Services Private Limited is the registrar to the issue.


Share Market Today

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

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.
Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Stocks in News Today

Our analysts at 5paisa scan through the financial markets and select the few trending stocks which were in the news and in the limelight for the day. Here is the list of a few trending stocks with their latest News and Updates.

  • Sep 25, 2023
Sai Silks Kalamandir IPO subscribed 4.40 times at close

The ₹1,201 crore IPO of Sai Silks (Kalamandir) Ltd, consisted of a combination of fresh issue and offer for sale. The fresh issue was to the tune of ₹600 crore while the offer for sale (OFS) was worth ₹601 crore.

  • Sep 22, 2023
SignatureGlobal India IPO subscribed 11.88 times at close

The ₹730 crore IPO of SignatureGlobal India Ltd, consisted of a combination of fresh issue and offer for sale. The fresh issue was to the tune of ₹603 crore while the offer for sale (OFS) was worth ₹127 crore.

  • Sep 22, 2023

To view the latest GMP price enter mobile number

Enter Mobile Number
Resend OTP
Enter Valid OTP
OTP sent successfully on your mobile no