GR Infraprojects IPO: G R Infraprojects IPO (Initial Public Offering) has been open for subscription since 7th July 2021 and today is the last day to bid for the public issue. In the last two days, GR Infra IPO has been subscribed 5.75 times, which reflects the overwhelming mood of the bidders toward the public offer. However, if we look at the grey market, GR Infraprojects GMP today has gone up again at ₹410 and it has been oscillating around ₹400 or above ever since the issue opened for subscription. According to market observers, this reflects short-term positive sentiment of the bidders as they are expecting strong listing of the initial issue of the company.
Speaking on the higher GR Infraprojects IPO GMP and its meaning Avinash Gorakshkar, Head of Research at Profitmart Securities said, "GMP of an IPO reflects the expected listing gains by the markets. But, it's not an official data and hence it should not be relied blindly as it involved those people too, who have a stake in the fate of the IPO. However, it has been found that people look at the GMP of an IPO before making any decision in regard to the public issue. They take it as an indication of the market in regard to a particular IPO."
As per Gorakshkar's views, GR Infraprojects IPO GMP today reflects that market is expecting listing of the IP at around ₹1247 ( ₹837 + ₹410). Means, market is expecting listing gains to the tune of 50 per cent from this IPO. However, Gorakshkar advised IPO bidders to look at the financials of the company as they reflect clear picture about the company's fundamentals.
Speaking on the strong fundamentals of GR Infra IPO; Saurabh Joshi Research Analyst at Marwadi Shares and Finance said, "The company is going to list at PE multiple of 8.51 with a market cap of ₹80,929, while its peers namely KNR Constructions Ltd and PNC Infratech Ltd is trading at multiples of 16.6 and 15.10 respectively. We recommend to subscribe this IPO as the company is an EPC player with road project focus having established track record of timely execution and is available as favourable valuation as compared to its peers."
So, market observers are of the opinion that strong GR Infra IPO subscription status, high GMP and strong fundamentals — all factors are indicating strong listing for the IPO on 19th July 2021.
