Tatva Chintan IPO: GMP (grey market premium) of the Tatva Chintan Pharma IPO (Initial Public Offering) has been continuously rising for the last one week. However, after the robust subscription of over 180 times, Tatva Chintan IPO grey market premium has shown sharp rise from ₹600 odd levels. Tatva Chintan IPO GMP today is ₹900 that means Tatva Chintan Pharma share price in the grey market is available at ₹900 premium, which is around 83 per cent higher from Tatva Chintan IPO price band of ₹1073 to ₹1083.
When Tatva Chintan IPO opened for subscription on 16th July 2021, Tatva Chintan Pharma share price in the grey market was around ₹600 and it keep on rising from there and hit ₹730 on the last date of bidding i.e. 20th July 2021. However, after the robust subscription of the IPO, its premium price in the grey market hit ₹775 per equity on Wednesday. And Tatva Chintan IPO GMP today has once again gone up at ₹900 per equity.
Speaking on what does continuous rise in GMP means for a public issue Avinash Gorakshkar, Head of Research at Profitmart securities said, "Rise in GMP is an indication that market is going bullish about the upcoming public issue. But, one must remember that grey market is unofficial and its data should not be taken as seriously as the financials of the company. I have been advising that one should look at the financials of the company instead of GMP because its financials which is concrete."
What Tatva Chintan IPO GMP today mean
On how does GMP works for an IPO, some market observers said that GMP is taken as the listing gain expected from the IPO. So, if we take the same for Tatva Chintan IPO GMP today at ₹900, it means the market is expecting around 83 per cent premium from the public issue as their expectation in regard to Tatva Chintan IPO listing price is around ₹1983 per equity.
Tatva Chintan IPO: Expected listing gain
Speaking on the expected listing gains from the Tatva Chintan IPO that its financials suggest; Ashok Holani, Director at Holani Consultants Private Limited said, "As per the financials of the Tatva Chintan Pharma, one can expect listing gain from its public issue to the tune of near 40-45 per cent or around ₹400 per equity share of the company."
Tatva Chintan IPO details
As per the Red Herring Prospectus (RHP) of the public issue, expected Tatva Chintan IPO allotment date is 26th July 2021, credit of shares to the lucky bidders is expected on 28th July while tentative Tatva Chintan IPO listing date is 29th June 2021.
