Vinyas Innovative Technologies IPO GMP (Grey Market Premium)

Vinyas Innovative Technologies IPO GMP
Vinyas Innovative Technologies IPO GMP

by Tanushree Jaiswal Last Updated: Oct 06, 2023 - 11:38 am 1.7k Views
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Vinyas Innovative Technologies IPO worth ₹54.66 crore comprises entirely of a fresh issue with no offer for sale (OFS) component. The price band for the book built issue been fixed in the range of ₹162 to ₹165 per share. The fresh issue portion of the IPO entails the issue of 33.128 lakh shares which at the upper end of the price band at ₹165 is worth ₹54.66 crore. Since there is no OFS component, the fresh issue size of ₹54.66 crore is also the size of the overall IPO.

About Vinyas Innovative Technologies 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 Vinyas Innovative Technologies 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.

How has the GMP panned out in last few days

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 Vinyas Innovative Technologies IPO which the data is available.

Date Grey Market Price (GMP)
6-Oct-2023 ₹67
5-Oct-2023 ₹59
4-Oct-2023 ₹44
3-Oct-2023 ₹44
2-Oct-2023 ₹30
1-Oct-2023 ₹18
30-Sep-2023 ₹18
29-Sep-2023 ₹18
28-Sep-2023 ₹18
27-Sep-2023 ₹20

In the above case, the GMP trend shows that the grey market premium has opened at around ₹20, but now up by ₹59. Of course, we have to await for the actual subscription numbers to flow in after the issue opens for subscription on 27th September 2023 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, Vinyas Innovative Technologies Ltd has shown good traction in the grey market.

If you consider the upper end of band price of the Vinyas Innovative Technologies IPO at ₹165, then the likely listing price is being signalled at around ₹185 per share as per the GMP indicator on 28th September 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 ₹20 on the upper end of the book built IPO price of ₹165 indicates a listing premium of a moderate to healthy 12.12% for Vinyas Innovative Technologies Ltd over the listing price. That pre-supposes a listing price of approximately ₹185 per share, when Vinyas Innovative Technologies Ltd lists on 11th October 2023. Of course, these are purely 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.

How to apply for the Vinyas Innovative Technologies IPO

The stock of Vinyas Innovative Technologies IPO has a face value of ₹10 and bidders can only bid in minimum lot size of 800 share each, entailing a minimum investment of ₹132,000 in the IPO at the upper end of the price band of ₹165 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 1,600 shares entailing an investment of ₹264,000. The table below captures the lot sizes permissible.

Application Lots Shares Amount
Retail (Min) 1 800 132,000
Retail (Max) 1 800 132,000
HNI (Min) 2 1,600 264,000

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. It is captured in the table below.

Like in every SME IPO, the IPO of Vinyas Innovative Technologies Ltd also has a market maker. The Market maker typically provides buy and sell quotes post listing to ensure liquidity and low basis risk in the stock. In this case, the makers will be Gretex Share Broking Ltd, who will act as the market maker for the SME IPO of Vinyas Innovative Technologies Ltd. The company has set aside 166,400 shares for the market maker.

The issue opens for subscription on 27th September 2023 and closes for subscription on 03rd October 2023 (both days inclusive). The basis of allotment will be finalized on 06th October 2023 and the refunds will be initiated on 09th October 2023. In addition, the demat credits are expected to happen on 10th October 2023 and the stock is scheduled to also list on 11th October 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.

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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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