NewsIPOOrkla India and Studds Accessories IPOs Hit the Market with Promising Grey Market PremiumsOrkla India and Studds Accessories IPOs Hit the Market with Promising Grey Market Premiums
Two mainboard IPOs, Orkla India and Studds Accessories, have entered the market with positive grey market premiums. Orkla India's IPO, launched on October 29, shows a grey market premium of ₹68 with an upper price band of ₹730 and an estimated listing price of ₹798. The IPO size is ₹1,667.54 crore. Studds Accessories is set to open its IPO on Thursday with a grey market premium of ₹53, an upper price band of ₹585, and an estimated listing price of ₹638. The IPO size is ₹455.49 crore. Both IPOs are offers for sale. Orkla India's first-day subscription was 0.78 times overall, with strong employee demand at 3.27 times.
*this image is generated using AI for illustrative purposes only.
Two mainboard Initial Public Offerings (IPOs) have entered the market this week, attracting investor attention with their positive grey market premiums. Orkla India and Studds Accessories are the latest companies to test the waters of the public market, each showing signs of potential gains for investors.
Orkla India IPO: A Closer Look
Orkla India, which launched its IPO on October 29, is currently in the spotlight with a grey market premium of ₹68. Here are the key details:
| Particulars | Details |
|---|---|
| Upper Price Band | ₹730.00 |
| Estimated Listing Price | ₹798.00 |
| Expected Gains | 9.32% |
| IPO Size | ₹1,667.54 crore |
| Offer Type | Offer for Sale |
| Shares on Offer | 2.28 crore |
| Subscription Closing | Friday |
| Expected Listing Date | November 6 |
The IPO's first-day performance showed mixed results:
- Overall subscription: 0.78 times
- Employee demand: Strong at 3.27 times
- Qualified Institutional Buyers (QIB) segment: Undersubscribed at 0.02 times
Studds Accessories IPO: Market Entry
Studds Accessories is set to open its IPO on Thursday, also showing promise with its grey market premium. Here's what investors need to know:
| Particulars | Details |
|---|---|
| Upper Price Band | ₹585.00 |
| Grey Market Premium | ₹53.00 |
| Estimated Listing Price | ₹638.00 |
| Expected Gains | 9.06% |
| IPO Size | ₹455.49 crore |
| Offer Type | Offer for Sale |
| Shares on Offer | 0.78 crore |
| Subscription Closing | November 3 |
| Tentative Listing Date | November 7 |
Market Implications
The positive grey market premiums for both Orkla India and Studds Accessories suggest a favorable market sentiment towards these IPOs. However, it's important to note that grey market premiums are unofficial and subject to change based on market conditions.
Investors should consider that both IPOs are entirely offers for sale, meaning the proceeds will go to the selling shareholders rather than the companies themselves. This factor may influence how the market perceives the long-term prospects of these stocks post-listing.
The contrasting subscription rates in different categories for Orkla India's IPO on its first day highlight the varying levels of interest among different investor groups. The strong employee participation is particularly noteworthy, potentially indicating confidence from those familiar with the company's operations.
As these IPOs progress through their subscription periods, market participants will be keenly watching the overall subscription rates and the response from different investor categories. These factors, along with broader market conditions, will play crucial roles in determining the final listing prices and initial trading performance of these stocks.
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