The Initial Public Offering (IPO) of Esprit Stones, a company has shown impressive early results. By the end of the first day of bidding, the IPO has been subscribed 70%, signaling a strong start for the company’s market debut.
One of the most encouraging signs from this IPO is the full subscription of the retail portion. This means that individual investors, who usually invest smaller amounts compared to institutional buyers, have shown a strong interest in Esprit Stones. Their complete participation suggests that they believe in the company’s potential for growth. Retail investors often reflect the general market sentiment, so their full engagement is a positive sign.
The Grey Market Premium (GMP) is a way to gauge the demand for an IPO before it officially lists on the stock exchange. GMP is the difference between the expected listing price and the current price of the IPO shares in the unofficial grey market.
As of now, the GMP for Esprit Stones is +₹38. This means that the shares are currently being traded at a premium of ₹38 in the grey market. With the IPO price band set between ₹82 and ₹87 per share, this premium suggests that the shares could be listed at an estimated price of around ₹125, which is approximately 43.68% higher than the upper end of the IPO price range. This high GMP reflects strong investor enthusiasm and anticipation for the IPO.
Key Details of the IPO
Here are some key details about the Esprit Stones IPO:
- Issue Size: The IPO is valued at ₹50.42 crore and includes a fresh issuance of 5,795,200 equity shares with a face value of ₹10.
- Price Band: ₹82 to ₹87 per share.
- Offer Composition:
- Qualified Institutional Buyers (QIBs): 10,75,200 equity shares
- Non-Institutional Investors (NIIs): 8,06,400 equity shares
- Retail Investors: 18,81,600 equity shares
- Employee Reservation: 1,28,000 equity shares
- Market Makers: 2,91,200 equity shares
The IPO subscription period started on Friday, July 26, and ended on Tuesday, July 30. As of the first day, the IPO has been subscribed 70% overall. Specifically, the retail portion was fully subscribed (1.25 times), and the non-institutional investors’ portion was booked at 48%. The total bids received so far amount to 27,40,800 shares against the 38,91,200 shares on offer.
For investors who have applied for the IPO, it is advisable to wait for the allotment results. These results are typically announced within a week after the IPO closes. As always, investors should make informed decisions based on the allotment outcomes and market conditions.