Infollion Research IPO GMP (Grey Market Premium)
Infollion Research Services IPO worth Rs.21.45 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 Rs80 to Rs82. The fresh issue portion entails the issue of 22.24 lakh shares which at the upper end of the price band at Rs82 is worth Rs18.24 crore. The OFS portion entails the issue of 3.92 lakh shares which at the upper end of the price band at Rs82 is worth Rs3.21 crore. Overall, Infollion Research Services IPO entails the issue of 26.16 lakh shares, which at the upper price band of Rs82 per share works out to total issue size of Rs21.45 crore.
The stock of Infollion Research Services Ltd has a face value of Rs10 per share and bidders can only bid in minimum lot size of 1,600 share each, entailing a minimum investment of Rs131,200 in the IPO at the upper end of the price band of Rs. 82 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 Rs262,400. The table below captures the lot sizes permissible.
As per the terms of the offer, not more than 48.65% of the net offer is reserved for the qualified institutional buyers (QIBs), not less than 16.30% of the offer is reserved for the HNI / NII investors and a minimum of 35.05% 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. Holani Consultants Private Ltd will act as market maker for the SME IPO of Infollion Research Services Ltd. The company has set aside 132,800 shares for the market maker.
The issue opens for subscription on 29th May 2023 and closes for subscription on 31st May 2023 (both days inclusive). The basis of allotment will be finalized on 05th June 2023 and the refunds will be initiated on 06th June 2023. In addition, the demat credits are expected to happen on 07th June 2023 and the stock is scheduled to list on 08th 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 Infollion Research Services 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 Infollion Research Services IPO for which the data is available.
In the above case, the GMP trend shows that the grey market premium has opened at around Rs25, but has since tapered slightly to Rs.76 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, Infollion Research Services Ltd has shown good traction in the grey market.
If you consider the upper end of band price of the IPO of Infollion Research Services Ltd at Rs82, then the likely listing price is being signalled at around Rs106 per share as per the GMP indicator on 23rd May 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 Rs24 on the upper end of the book built IPO price of Rs82 indicates a listing premium of a healthy 29.27% for Infollion Research Services Ltd over the listing price. That pre-supposes a listing price of approximately Rs106 per share, when Infollion Research Services Ltd lists on 08th 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.
Here is a quick background of Infollion Research Services Ltd. Infollion Research Services Ltd, is an SME IPO on the NSE which is opening for subscription on 29th May 2023. The company was incorporated in 2009 and offers a very technology driven consulting market place. Infollion Research Services plays a catalytic role in the B2B Human Cloud segment with its strong expert empanelment.
Infollion Research Services, provides a platform for workers on one side and potential employers or hirers on the other side. It has a client base including top-tier consulting firms, hedge funds, private equity funds, and mid-tier Corporates. IPO funds will be used to expand in the US and Europe as well as expanding visibility and technology development. Holani Consultants Private Limited will also be the lead manager to the issue and Link Intime India Private Limited will be the registrar to the issue.
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