Tempsens Instrument IPO: GMP soars past 100%, signalling strong listing hopes
Tempsens Instruments IPO grey market premium has surged 100 percent. This marks the first IPO to cross this milestone in nearly two years. The IPO was subscribed nearly 22 times on its second day. Other upcoming IPOs also show strengthening grey market premiums. Investor appetite for new share sales appears to be reviving.
Mumbai - Tempsens Instruments' grey market premium (GMP) has skyrocketed by 100%, marking a historic milestone as the first Initial Public Offering (IPO) in nearly two years to achieve such a feat. Investor enthusiasm for new share sales appears to be revitalizing after a series of underwhelming mainboard listings in 2025 and 2026.
Currently, the stock commands a GMP of ₹301, representing a 102% premium over its IPO price of ₹300 per share. Tempsens Instruments is raising approximately ₹650 crore via its IPO, with near 22x subscription on its second day of issue. The IPO closes on August 24.
The GMP represents the extra amount investors are willing to pay for shares before their official listing on the stock exchange, as the stock is traded informally in the grey market based on mutual trust among traders. Before the listing, the GMP signifies the difference between the stock's price in the grey market and its IPO issue price. The last IPO to record a GMP exceeding 100% was Mamata Machinery in December 2024, followed by KRN Heat Exchanger and Refrigeration and Bajaj Housing Finance, both in September 2024.
The subscription patterns reveal a diverse investor base for Tempsens Instruments. The non-institutional investor (NII) portion was subscribed around 53 times, the qualified institutional buyer (QIB) portion saw 3.31x subscription, and the retail portion was subscribed nearly 19 times. The grey market premium serves as an indicator of market sentiment towards an IPO, based on demand and supply dynamics.
A strong demand typically leads to a higher GMP, suggesting potential upside upon listing. Several other upcoming and recently launched IPOs, such as Lumino Industries (GMP of around 62%), Augmont Enterprises (GMP of around 50%), and Hy-Tech Engineers (GMP of around 50%), have also shown robust GMPs, reflecting positive market sentiment.
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