Strong IPO gains stoke FOMO fears, set grey market abuzz
The unofficial grey market shows increased activity with rising share prices. Recent strong IPO listings have boosted investor confidence and expectations for future gains. Several upcoming initial public offerings are experiencing significant grey market premiums. This heightened investor appetite is driven by recent successful stock market debuts. Companies are now pricing their offerings more…
Mumbai: The unofficial grey market for shares traded before main exchange listings is experiencing heightened activity, driven by strong recent IPO listings. Higher grey market premiums, the extra price investors pay over the IPO price, signal growing expectations for better listing gains. Behari Lal Engineering's GMP is 44% higher than its issue price due to 118 times IPO subscription, while Shiprocket's is 38% above its ₹97 price after 99 times subscription.
Lalithaa Jewellery Mart's GMP is also 17% above issue, with over 3x subscription. Sunshine Pictures and Skyways Air Services show 21% and 24% premiums, respectively. Tempsens Instruments India's GMP is ₹168, or 56% above its ₹300 price. Brokers note grey market premiums have risen to 15-25%. Experts say this momentum, fueled by strong recent listings, sets the stage for a robust IPO pipeline, including Jio and NSE.
Manan Doshi, Unlisted Arena co-founder, predicts robust activity. August has seen strong listing-day gains from companies like Technocraft Ventures and MV Electrosystems, which jumped 47% each. Hitesh Dharawat of Dharawat Securities notes elevated FOMO among retail and high-net-worth investors, leading to high oversubscription in ongoing IPOs.
Average listing gains for the 12 July IPOs were 20%, compared to 9% for 27 market debutants between January and June, compared to 10% in 2025. GMPs for upcoming IPOs like Gaja Alternative Asset Management and Shankesh Jewellers are relatively muted, driven by IPO pricing.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
