Curated By: Business Desk
Last Updated: September 20, 2023, 16:20 IST
Initial public offerings (IPOs) have been on the rise in India. Many companies have opted for IPOs in recent times. An IPO is the sale of the shares of a private corporation to the public. EMS Limited has been the latest addition to the list of IPOs in the country.
According to reports, EMS Ltd. fixed the price limit per share at Rs 200 to Rs 211. The promoters of the company have been offering the shares through OFS, and the subscription to the stock started on September 8 and ended on September 12. Due to the hype created by EMS Ltd., the shares of the company are being sold at a premium of Rs 88 in the grey market as of September 18. This means that if the upper price band is considered, then, as per the GMP, the stock is expected to be listed in the market at Rs 299. (Rs 211 + Rs 88).
The company provides services for the collection, treatment and disposal of water and wastewater. They had bought an IPO worth Rs 321 crore, which includes both OFS (offer for sale) and fresh issues. As per reports, the company has been issuing 69.31 lakh new shares. Apart from that, the company’s shareholders are also selling their shares worth Rs. 175 crore. Recently, the company’s GMP (Grey Market Premium) has been making waves in the market.
As per reports, the GMP has fallen as compared to what it was at the start of the month. On September 1, the GMP of the shares was Rs 103. After that, it saw a rise, and by September 10, it had reached Rs 127. But now, it has fallen and reached Rs 88 as per the grey market.
GMP (Grey Market Premium) refers to the speculations going on in the market regarding the listing of a share. In simple words, GMP helps in understanding at what price that share will be sold and bought in the market. However, it is important to note that GMP is not an accurate metric to determine the listing status of shares in the stock market.
Note: It is advised that before investing, people should consider all the financials of the company and the current scenario in the market.