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Mandeep Auto Industries shares debuted on the market with a poor showing. At that time, they were trading at Rs 62.25, 7.1 percent below the issue price of Rs 67.
The shares were trading with marginal gains of 6% at the time of listing, which was below grey market predictions. Shares trade in the grey market, an unofficial ecosystem, well in advance of the offer’s subscription opening and continue to do so until the day of listing.
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A respectable number of shares were subscribed to the Rs 25.25-crore public offer, which consists of a new 37.68 lakh share issuance, as the issue was booked 77.21 times. While non-institutional investors acquired 61.5 times their reserved amount, retail investors purchased more than 90 times.
It was established in 2000 and focuses on producing and supplying a wide range of goods, such as machined parts, sprocket gears, auto parts, and sheet metal components. Numerous industries, including autos, tractors, railroads, machine tools, earth movement and material handling equipment, defense, and do-it-yourself projects, use these goods.
Prospects for Mandeep Auto Industries
The money raised will help to expand the current manufacturing plant. The money will also be utilized for general corporate purposes, working capital needs, and the repayment or prepayment of some of the company’s debt.
The price range for the Mandeep Auto Industries IPO was established at Rs 67 per share.
A look at the GMP
The grey market premium (GMP) for Mandeep Auto Industries’ IPO is +4. According to investorgain.com, this shows that the share price of Mandeep Auto Industries was trading at a premium of ₹4 on the grey market.
Mandeep Auto Industries’ expected listing price was ₹71 per share, 5.97% more than the IPO price of ₹67, taking into account the top end of the IPO pricing band and the current premium on the grey market.
A “grey market premium” denotes the willingness of investors to part with more money than the issue price.
Further read: More about Mandeep Auto Industries