Urban Company and Shringar House of Mangalsutra are witnessing strong demand in the grey market, with their shares commanding a premium of up to 18 percent ahead of their initial public offerings opening next week.
According to websites tracking grey market trends, shares of Urban Company are quoting a premium of Rs 19, translating into an estimated listing gain of 18.45 percent over the upper end of the price band. Shringar House of Mangalsutra is commanding a premium of over 15 percent.
Urban Company has fixed a price band of Rs 98-103 per share for its Rs 1,900-crore IPO. At the upper limit, the Gurugram-based firm is valued at Rs 14,790 crore. The issue will open for public subscription on September 10 and close on September 12, while the anchor book will be available for a day on September 9.
The IPO comprises a fresh issue of equity shares worth Rs 472 crore and an offer for sale (OFS) of shares aggregating to Rs 1,428 crore by existing shareholders.
Meanwhile, jewellery firm Shringar House of Mangalsutra has set a price band of Rs 155-165 per share for its Rs 401-crore IPO. The issue, entirely a fresh equity offering of 2.43 crore shares, will also be open for subscription during September 10-12.
Proceeds from the Shringar House of Mangalsutra issue will be utilised to meet working capital needs and for general corporate purposes, the Mumbai-based company said.
Grey market premium (GMP) is considered an indicator of investor sentiment towards upcoming IPOs, though it is not an official or regulated measure.
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