Now Reading: Dhoot Transmission IPO listing on 17 August, GMP signals 30% gain
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Dhoot Transmission IPO listing on 17 August, GMP signals 30% gain
Dhoot Transmission IPO listing on 17 August, GMP signals 30% gain
Dhoot Transmission IPO allotment has been finalised, with shares set to list on the BSE and NSE on 17 August. The grey market premium (GMP) is around Rs270, indicating a listing gain…
The Story in Brief
Dhoot Transmission IPO allotment has been finalised, with shares set to list on the BSE and NSE on 17 August. The grey market premium (GMP) is around Rs270, indicating a listing gain of roughly 30% over the upper price band of Rs871 per share.
The Rs1,400-crore fresh issue plus an offer for sale by existing shareholders, including Bain Capital, saw overall subscription of 74 times. Qualified institutional buyers bid 212 times their quota, while retail investors subscribed 8 times. The price band was Rs829-Rs871.
The Indian Opinion
Retail investors may be tempted by the 30% grey market premium, but GMP is unregulated and often inflated by speculation. The IPO's massive QIB oversubscription suggests institutional confidence, yet the retail response was modest at 8 times. With Bain Capital selling a large chunk via OFS, the real test will be whether the stock holds its listing gains over the next quarter, not just on day one.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
