by Tanushree Jaiswal Last Updated: Aug 17, 2023 - 10:54 am 2.6k Views
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.
|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|
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.
In the above case, the GMP trend shows that the grey market premium has opened at around ₹25, but now its up by ₹14. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 04th August 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, Yudiz Solutions Ltd has shown good traction in the grey market.
If you consider the upper end of band price of the IPO of Yudiz Solutions Ltd at ₹165, then the likely listing price is being signalled at around ₹190 per share as per the GMP indicator on 29th 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 ₹25 on the upper end of the book built IPO price of ₹165 indicates a listing premium of a healthy 15.15% for Yudiz Solutions Ltd over the listing price. That pre-supposes a listing price of approximately ₹190 per share, when Yudiz Solutions Ltd lists on 17th 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.
Brief on Yudiz Solutions Ltd
Yudiz Solutions Ltd, is an SME IPO on the NSE opening for subscription on 04th August 2023. Yudiz Solutions Ltd was incorporated in 2012 to offer IT solutions and consultancy services. Apart from being a technology services company, Yudiz Solutions Ltd also positions itself as a digital transformation company. Its areas of operations include mobile app development, game development, Blockchain, AR/VR web development, apart from the regular activities like website development, ecommerce set up, and portal development for the clients. Its blockchain and game app development businesses are the most robust of the verticals.
Yudiz Solutions Ltd offers various platforms include News Platform, E-commerce Bidding Platform, On-Demand Services Platform, VR Training platform, Upskilling Industry specific VR platform, HR Intelligence platforms etc. The company brings some key advantages to the table like domain expertise, skilled team, an integrated one-stop solution offering and low attrition rates ensuring that there is continuity in its offerings. The fresh funds will be used by the company for acquisitions, new product development, networking, and brand building in the coming years.
The fresh issue portion will be used to fund inorganic acquisitions, product & Technology development, capex as well as branding and marketing. The issue will be lead managed by Narnolia Financial Services Ltd while MAS Services Ltd will be the registrars to the SME IPO of Yudiz Solutions Ltd.
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About the Author
DisclaimerInvestment/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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