Mumbai: Urban Company’s Initial Public Offering (IPO) is closing today, Friday, September 12, and has received a huge response from investors. On the final day of bidding, till 11:25 am, the IPO was subscribed over 16.86 times, showing strong interest from retail, institutional, and non-institutional investors.
GMP Suggests Strong Listing
The Grey Market Premium (GMP) for Urban Company shares has risen sharply. On the first day of bidding, GMP was around 37 percent, but now it has gone up to 41.75 percent.
This means that in the unofficial grey market, investors are willing to pay Rs 43 more than the issue price of Rs 103, suggesting that Urban Company shares may list around Rs 146 when they hit the stock exchanges.
What is GMP and Why Does It Matter?
GMP (Grey Market Premium) is the price traders are willing to pay in the unofficial market before the stock is officially listed. It gives an idea of market sentiment and expected listing price.
However, GMP is not official and can change depending on investor mood and market conditions.
Key Dates to Remember
IPO Bidding Closed: September 12
Allotment Date: September 15
Listing Date: September 17
Stock Exchanges: BSE and NSE
IPO Price Band and Lot Size
The price band for the Urban Company IPO is Rs 98 to Rs 103 per share.
The lot size is 145 shares, meaning the minimum investment needed is for 145 shares or more in multiples.
Who Subscribed the Most?
As of the final day of bidding (September 12, 11:25 am):
Overall Subscription: 16.86x
Retail Investors: 25.98x
Non-Institutional Investors (NII): 39.33x
Qualified Institutional Buyers (QIB): 2.56x
This shows that small and big investors are both highly interested in the IPO.
What Does This Mean for Investors?
If you applied for the IPO, there is a high chance of oversubscription, so allotment may be tough in the retail category. However, the high GMP and strong subscription suggest a positive listing with possible profits on Day 1.
Urban Company’s IPO has seen huge demand, with its GMP signaling a potential listing price of Rs 146 or more. Investors are hopeful for good returns, but they should also watch the market on listing day as conditions can change quickly.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. IPO investments are subject to market risks, and past GMP or subscription figures do not guarantee future performance. Readers are advised to consult with a certified financial advisor or conduct their own research before making any investment decisions.
