Yudiz Solutions IPO GMP (Grey Market Premium)

Yudiz Solutions IPO worth ₹44.84 crore comprises entirely of a fresh issue with no offer for sale (OFS) component in the IPO from promoters and early shareholders. The price band has been fixed in the range of ₹162 to ₹165 per share and the final price will be discovered in this band via book building. The fresh issue portion of the IPO entails the issue of 27.176 lakh shares which at the upper end of the price band at ₹165 is worth ₹44.84 crore. Since there is no OFS component in the IPO, the fresh issue size of ₹44.84 crore is also the size of the overall IPO.

How to apply for the Yudiz Solutions IPO

The stock of Yudiz Solutions 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.

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, Yudiz Solutions IPO 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 Kantilal Chhaganlal Securities Ltd, who will act as the market maker for the SME IPO of Yudiz Solutions Ltd. The company has set aside 136,800 shares for the market maker.

The issue opens for subscription on 04th August 2023 and closes for subscription on 08th August 2023 (both days inclusive). The basis of allotment will be finalized on 11th August 2023 and the refunds will be initiated on 14th August 2023. In addition, the demat credits are expected to happen on 17th August 2023 and the stock is scheduled to also list on 17th 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.

Yudiz Solutions IPO GMP pricing

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 Yudiz Solutions 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 Yudiz Solutions IPO 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 Yudiz Solutions IPO for which the data is available.