Shivani Bhati | May 6, 2022 |

IPO Update: Today’s Campus Activewear IPO GMP and expected listing gains

Campus Activewear’s IPO (Initial Public Offering) share allocation has been finalized, and allottees are now eagerly awaiting the stock listing of India’s largest sports and athleisure footwear brand. However, because market sentiment has been negative for the past few sessions, some market observers and allottees are concerned about the listing premium.

Qualified Institutional Buyers (QIB), who subscribed 152.04 times the portion authorised for them, contributed to the positive response to the Campus Activewear IPO. According to data, non-institutional purchasers bid for 22.25 times the shares available for them, while retail buyers oversubscribed by 7.68 times.

Today’s Campus Activewear GMP

According to IPO Watch, the unlisted shares of Campus Activewear were trading at a premium of Rs 60 on Friday, down Rs.15 from the grey market premium (GMP) of yesterday.

Because the GMP for Campus Activewear’s IPO is Rs 65 today, the grey market anticipates a listing price of Rs 357 (Rs.292 + Rs.65), or around 22% higher than the IPO pricing band of Rs 278 to Rs 292 per equity share.

– Market experts have noted that despite poor emotions in the secondary market, the GMP for the Campus Activewear IPO has remained consistent, which is commendable.

IPO’s Listing Date

As the Campus Activewear IPO share allotment has been finalised, winning bidders will now look at the listing date. Campus Activewear shares will be listed on May 9, Monday, on both BSE and NSE. The credit to demat accounts of winning bidders will be done today.

Market experts went on to note that while Campus Activewear IPO GMP today is ₹79, it suggests grey market is predicting that Campus Activewear IPO listing would be approximately ₹371, which is more than 25 per cent from Campus Activewear IPO price band of ₹278 to ₹292 per equity share.

So, following the Campus Activewear IPO allotment, the grey market is attempting to communicate that, despite market downturn, allottees should expect a large premium from the public offering.

However, stock market experts said that grey market is not the right indicator of an IPO’s success or failure as it is non-regulated and its data is completely unofficial. They claimed that the grey market premium has nothing to do with the company’s financials, thus depending on grey market data may mislead the market enthusiast. They asked allottees to look at the financials of the company as it would give a concrete picture of its fundamentals.

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Tags: IPO, IPO 2022, IPO IN 2022, Share Market, Studycafe

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Name: Shivani Bhati

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Company: Studycafe

Location: Delhi, India

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