What GMP signals after announcement of share allocation

Go Fashion IPO GMP

According to market observers, Go Fashion IPO GMP (grey market premium) today is ₹500, which is ₹20 up from its yesterday’s evening grey market premium of ₹480. They went on to add that yesterday morning, Go Fashion IPO GMP was ₹540 that went on to dip up to ₹480 by evening. But, in morning today there were some recovery in Go Fahion share price in the grey market. Market observers said that this rise in the Go Fashion IPO GMP is good sign as this rise has been registered after heavy bloodbath at Dalal Street.

What this GMP mean?

Market observers went on to add that Go Fashion IPO GMP today is ₹500, which means grey market is expecting Go Fashion share price listing at around ₹1190 ( ₹690 + ₹500), which is more than 70 per cent from its price band of ₹655 to ₹690 per equity share.

However, stock market experts said that grey market is not an ideal indicator for assessment of a public issue. They said that it’s financials of the company that gives ideal picture about the company and advised lucky bidders of Go Fashion IPO to remain away from making any conclusion from this rise in Go Fashion IPO GMP.

Expecting better listing gain from Go Fashion IPO; Ravi Singh, Head of Research & Vice President at ShareIndia said, “In the current market scenario, most of the IPO’s are expected to perform well. We expect Go Fashion IPO to also receive a good response during listing. The boost in textile sector will also help Go Fashion in longer term. However, we advise the investors to book the premium at the time of listing.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.