Grover Jewells shares list at 9% premium to SME IPO price, beat grey market estimates

Grover Jewells IPO

• Grover Jewells shares listed at Rs 96, over 9 percent above IPO price of Rs 88
• Listing premium beat grey market estimates, despite tepid debut
• IPO was subscribed over 19 times, raising Rs 33.83 crore

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The shares of Grover Jewells made a tepid debut on stock markets on February 11, listing at Rs 96 apiece on the NSE Emerge platform. This marks a premium of more than 9 percent from the IPO price of Rs 88 apiece.

The company debuted on the stock markets with a market capitalization of Rs 139.27 crore.

Listing premium vs grey market estimates:

Despite the tepid market debut, the listing premium has significantly beaten grey market expectations. Ahead of listing, the unlisted shares of the company were trading flat at the IPO price at Rs 88 with zero grey market premium (GMP).

The GMP quoted by the site fell from the nearly 3 percent quoted when the IPO was open for public bidding between February 4 and February 6.

According to IPO Watch too, the unlisted shares of the company were trading with zero GMP over the IPO price.

Grover Jewells IPO:

Delhi-based gold jewellery maker Grover Jewells had moved to the primary market to raise Rs 33.83 crore through an entirely fresh issue of 38.44 lakh shares at a price band of Rs 83-88 per share. Investors could bid for a minimum of 1,600 shares, requiring an investment of Rs 1.41 lakh, and in multiples thereafter.

The IPO saw strong investor interest during its three days of public bidding, being subscribed more than 19 times between February 4 and February 6. Non Institutional Investors (NII) showed the most interest in the IPO, booking their reserved portion nearly 38 times. The portions kept for retail and qualified institutional buyers (QIB) were booked 16 times and 11 times, respectively.

The IPO proceeds will be utilised mainly for working capital, and the remainder funds for general corporate purposes.

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