Greenchef Appliances IPO GMP (Grey Market Premium)

Greenchef Appliances IPO GMP
Greenchef Appliances IPO GMP

by Tanushree Jaiswal Last Updated: Jul 05, 2023 - 11:31 am 2.2k Views

Greenchef Appliances IPO worth ₹53.62 crore, comprises entirely of a fresh issue and there is no offer for sale (OFS) component by promoters and early shareholders. The price band has been fixed in the range of ₹82 to ₹87. The fresh issue portion entails the issue of 61,63,200 shares which at the upper end of the price band at ₹87 is worth ₹53.62 crore. There is no OFS portion in this issue. OFS entails a transfer of ownership and hence is not EPS dilutive, unlike a fresh issue of shares. Therefore, the IPO overall entails the issue of 61.632 lakh shares, which at the upper price band of ₹87 per share works out to total issue size of ₹53.62 crore. The fresh issue is the overall size of the IPO too.

Greenchef Appliances IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 1,600 share each, entailing a minimum investment of ₹139,200 in the IPO at the upper end of the price band of ₹87 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 3,200 shares entailing an investment of ₹278,400. The table below captures the lot sizes permissible.

Application Lots Shares Amount
Retail (Min) 1 1600 139,200
Retail (Max) 1 1600 139,200
HNI (Min) 2 3200 278,400

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. The table below captures the IPO reservation across categories.


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


Hem Finlease Ltd will act as the market maker for the SME IPO of Greenchef Appliances Ltd. The company has set aside 312,000 shares for the market maker. The market maker offers buy and sell quotes in a fine range post listing of the stock and this ensures that there is sufficient liquidity in the stock post listing.

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 Greenchef Appliances 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 Greenchef Appliances IPO for which the data is available.

Date GMP
5-July-2023 ₹42
4-July-2023 ₹40
3-July-2023 ₹40
2-July-2023 ₹40
1-July-2023 ₹40
30-June-2023 ₹38
29-June-2023 ₹40
28-June-2023 ₹50
27-June-2023 ₹50
26-June-2023 ₹50
25-June-2023 ₹35
24-June-2023 ₹35
23-June-2023 ₹26
22-June-2023 ₹23
21-June-2023 ₹23
20-June-2023 ₹16
19-June-2023 ₹16

In the above case, the GMP trend shows that the grey market premium has opened at around ₹16, and is up by ₹42 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, Greenchef Appliances Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the IPO of Greenchef Appliances Ltd at ₹87, then the likely listing price is being signalled at around ₹103 per share as per the GMP indicator on 20th 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 ₹16 on the upper end of the book built IPO price of ₹87 indicates a listing premium of a healthy 18.39% for Greenchef Appliances Ltd over the listing price. That pre-supposes a listing price of approximately ₹103 per share, when Greenchef Appliances 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.

Read : What you should know about Greenchef Appliances IPO?

Here is a quick background of the company. Greenchef Appliances Ltd, is an SME IPO on the NSE which is opening for subscription on 23rd June 2023. The company was incorporated in 2010 and manufactures kitchen appliances under the brand name of Greenchef. Its product portfolio includes gas stoves, pressure cookers, mixer grinders, wet grinders, rice cookers, induction cooktop, and a range of non-stock cookware including pans, pots, and kettles.

Greenchef Appliances Ltd sells its products through offline and online through popular internet platforms like Flipkart, JioMart, Big Basket and Amazon. Apart from selling products, the company also provides its customers value-added services like after-sales services, installation, repairs, maintenance, annual contracts etc. Its offline sales are done through a network of 107 authorized dealers across 15 states. The company has 3 manufacturing facilities in Karnataka and one in Himachal Pradesh. The issue will be lead managed by Hem Securities Limited, while Link Intime India Private Ltd will be the registrars to the SME IPO of Greenchef Appliances Ltd.

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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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