InvestorQ : Is it true that the grey market price of Angel Broking IPO has slipped into negative and what is the reason for that?
Anjana Aiyar made post

Is it true that the grey market price of Angel Broking IPO has slipped into negative and what is the reason for that?

Answer
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Dhwani Mehta answered.
3 weeks ago


In a rather ironic twist to a solid IPO season, retail broking house Angel Broking ended up being the only IPO to slip into a discount in the grey market ahead of its IPO listing. Angel had seen a tepid response to the IPO and that has depressed grey market premiums.

The grey market for Angel started on a strong note with a premium of Rs 100 above the IPO price of Rs 306 per share. However, the volatility as well as the tepid response to the IPO in the institutional segment resulted in the grey market premiums dropping and eventually dipping to negative.

Angel Broking is one of the largest retail broking houses in terms of active clients on NSE but has been facing severe competition from low cost discount brokers and has been seeing consistent fall in revenues and profits in the last few quarters.

It may be recollected that Angel Broking had raised Rs.600 crore which consisted of a fresh issue of Rs.300 crore and an OFS of Rs.300 crore by promoters and investors. The IPO will list on the bourses on the 05 of October.


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MD zarif alam answered.
3 weeks ago


No fruit is sweet but sold in the market.