Avalon Technologies IPO: What GMP signals after announcement of share allotment


Avalon Technologies IPO: Avalon Technologies Ltd.’s initial public offering (IPO) has announced the allocation of shares, and now lucky allottees and market watchers are eagerly awaiting the company’s anticipated 18th April 2023 listing date. Shares of Avalon Technologies Ltd. are currently available at a premium of $10 in grey market after retreating from a double-digit to a single-digit premium earlier.

IPO GMP for Avalon Technologies today
Observers of the stock market claim that the grey market premium (GMP) for Avalon Technologies’ IPO today is $10, an increase of $5 from the GMP per share from yesterday. Market watchers argued that the steady growth of the Indian stock market, as evidenced by the rises in the Sensex, Nifty, and Bank Nifty during an eight-day stretch, can be linked to the increase in GMP. Nonetheless, they claimed that due to investors’ lacklustre response, the grey market continued to view the public offering negatively because it received less than 100% subscription in all categories with the exception of QIBs.

How does this GMP work?
Market watchers continued by stating that the Avalon Technologies initial public offering (IPO) GMP today is 10, which indicates that the grey market anticipates the company’s IPO listing price to be around $446 (or $436 plus 10), which is in line with its price range of $415 to $436 per equity share. Market watchers claimed that the grey market is indicating a potential par listing for Avalon Technologies shares on the share listing date.

Stock market analysts argued that since grey market sentiment is unregulated and entirely speculative, it shouldn’t be taken at face value. They urged investors to examine the company’s financials since they provide a clear, core view of the business.

Due to the enthusiastic reaction from investors in the QIB category, the Avalon Technologies IPO was oversubscribed 2.34 times. The public issue’s retail part received 0.88 times as many subscriptions as its QIB category, which received 3.77 times as many. In the NII section, the public issue was subscribed 0.43 times.