GNG Electronics IPO Sees Strong Demand Amidst Market Volatility
The initial public offering (IPO) of GNG Electronics, a leading provider of refurbished laptops and desktops, has seen a strong response from investors, with the issue being fully subscribed on the first day of bidding.
As of 4:12 p.m. on July 23, the IPO was booked over 8.24 times, indicating a strong demand for the company’s shares. The Qualified Institutional Buyers (QIBs) booked their quota 1.54 times, while the Non-Institutional Investors (NIIs) subscribed their category more than 16 times. The retail portion was booked more than 8 times, demonstrating the confidence of individual investors in the company’s future prospects.
The grey market premium (GMP) for the issue has also seen a significant increase, indicating a gain of over 44% over the issue price for investors. According to InvestorGain, the GMP for the GNG Electronics IPO stood at Rs 105 as of 2:35 p.m. on July 23, indicating a listing price of Rs 342 apiece at a premium of 44.3% over the upper limit of the price band.
The GMP is a crucial indicator of investor sentiment, as it reflects the expected price of the company’s shares once they are listed on the stock exchange. A higher GMP indicates strong demand for the company’s shares and a potential for higher returns for investors.
The GNG Electronics IPO is a book-building issue worth Rs 460.43 crore, comprising a fresh issue of 1.69 crore shares, amounting to Rs 400 crore and an offer-for-sale (OFS) portion of 26 lakh shares worth Rs 60.44 crore. The price band for the IPO is set between Rs 225 and Rs 237 per share, providing investors with a range of options to participate in the issue.
The subscription window for the IPO is open from July 23 to July 25, with the allotment of shares proposed to be finalised on July 28. The company will transfer shares to the Demat accounts of successful bidders on July 29, and refunds for non-allottees will also be processed on the same day.
Shares of GNG Electronics will be listed on the BSE and NSE on July 30, providing investors with an opportunity to benefit from the company’s growth prospects.
The company will use proceeds from the IPO to clear debt and for general corporate purposes, demonstrating its commitment to strengthening its financial position and driving growth.
Investors should exercise caution while investing in the IPO, as the market can be volatile. It is essential to do thorough research and consult with financial advisors before making investment decisions.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
