Vinsys IT Services IPO GMP (Grey Market Premium)
Vinsys IT Services IPO worth ₹49.84 crore comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO issue. Being a book built IPO, the issue price band has been set in the range of ₹121 to ₹128 per share with IPO issue price to be discovered through book building process. The fresh issue portion entails the issue of 38.94 lakh shares which at the upper band of the IPO price of ₹128 per share is worth ₹49.84 crore. Since there is no OFS portion, the fresh issue size will also the total size of the IPO in the case of Vinsys IT Services Ltd. The fresh funds raised through the IPO will be used for loans to subsidiaries and repayment of subsidiary loans, working capital gap funding and for general corporate purposes. The stock will be listed on the SME segment of the NSE.
The stock of Vinsys IT Services IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 1,000 share each, entailing a minimum investment of ₹128,000 in the IPO at the upper band of the IPO price of ₹128 per share. That is also the maximum that a retail investor can bid in the IPO. HNIs and NIIs can bid for minimum of 2 lots of 2,000 shares entailing an investment of ₹256,000. The table below captures the lot sizes permissible.
As per the terms of the offer, 50% of the net offer is reserved for retail investors and the balance 50% for the HNI / NII investors. The table below captures this quota allocation for IPO of Zeal Global Services Ltd.
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
Vinsys IT Services IPO is a book built issue with the price of the IPO to discovered in the price band of ₹121 to ₹128 per share. The company has set aside 195,000 shares for the market maker, Sunflower Broking Ltd. The market maker typically provides liquidity on the counter of the stock post listing by offering buy and sell quotes on a continuous basis. This ensures liquidity on the counter and reduces the basis risk in the stock.
The issue opens for subscription on 01st August 2023 and closes for subscription on 04th August 2023 (both days inclusive). The basis of allotment will be finalized on 09th August 2023 and the refunds will be initiated on 10th August 2023. In addition, the demat credits are expected to happen on 11th August 2023 and the stock is scheduled to list on 14th August 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.
Vinsys IT Services IPO GMP
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 Vinsys IT 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 Vinsys IT 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 ₹22, and up by ₹60. 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, Vinsys IT Services Ltd has shown strong price traction in the grey market.
If you consider the upper band of the book built IPO of Vinsys IT Services Ltd at ₹128, then the likely listing price is being signalled at around ₹150 per share as per the GMP indicator on 26th July 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 ₹22 on the upper band of the IPO price of ₹128 per share indicates a listing premium of a healthy 17.19% for Vinsys IT Services Ltd over the listing price. That pre-supposes a listing price of approximately ₹150 per share, when Vinsys IT Services Ltd lists on 14th August 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.
Brief background of Vinsys IT Services Ltd
Vinsys IT Ltd, is an SME IPO on the NSE Emerge segment opening for subscription on 01st August 2023. Vinsys IT Ltd, was incorporated in in 2008 to provide IT skill development solutions to institutional customers. The company is engaged in offering packages for IT training, IT skill development, IT skill upgradation in line with changing demands. It operates through 8 entities and has a strong presence in India and also abroad; especially in the US and the Middle East.
Vinsys IT Ltd is an ISO 9001:2015 certified organization and globally acclaimed individual and corporate training provider. It has a legacy of empowering professionals with knowledge for more than 15 years and has trained more than 600,000 professionals around the world till date. It has a global presence across Australia, China, India, Kenya, Malaysia, Oman, Singapore, Tanzania, UAE, and the US. It conducts corporate training and open house workshops in Information Technology, IT Service Management, IT Governance, IT Infrastructure Library, Project Management, behavioural and Management Solutions.
The fresh issue portion will be used to provide loans to its subsidiary companies as well as to repay some of their loans. Part of the fresh funds will also be used for working capital needs and general corporate purposes. The issue will be lead managed by Beeline Capital Advisors Private Ltd while Link Intime India Private Ltd will be the registrars.
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