InvestorQ : How do you see the Gland Pharma listing on Friday, considering that grey market premiums are quite attractive?
diksha shah made post

How do you see the Gland Pharma listing on Friday, considering that grey market premiums are quite attractive?

Answer
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2 weeks ago
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We will have to really wait for the actual listing because listing performance has been quite erratic in the recent past. However, one indicative guide on the listing is to go by the unofficial grey market price indications, and that has been quite encouraging.

The good news is that in the last few days, the grey market premium or GMP of Gland Pharma has shot up from Rs.10 to Rs.140 per share. But there has also been volatility as prior to that it had fallen from Rs.200 to Rs.10. So take GMP with a pinch of salt.

Grey market premiums are unofficial views and there is not legal sanction to it. To that extent, it can be quite misleading and can also be manipulated. We are not sure how the markets will react to a Chinese pharma company and that is the X-factor.

It may be recollected that Gland Pharma had come out with the IPO in the price band of Rs.1490-1500 which assumes a base-case market cap of Rs.25,000 crore. While institutional interest on the stock has been buoyant, retail and HNI response continues to be tepid.


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