Stellar show of stocks on debut pushes up grey market premiums

Stellar show of stocks on debut pushes up grey market premiums

New Delhi: After astronomical listing debut by Burger King India and Mrs Bectors, upcoming debuts on Dalal Street are likely to get more exciting.

Mrs Bectors Food Specialities on Thursday doubled stock price on debut. The IPO has received a whopping 198 times subscription. These solid primary market performances are having an impact on the grey market, with premiums rising rapidly.

The grey market premium for Mrs Bectora had zoomed to Rs 215-220 on Monday from Rs 200-205. The stock traded at Rs 500 in debut trade on Thursday against the issue price of Rs 288.

Similarly, Antony Waste Handling Cell is trading at a premium of Rs 100 per share in the unofficial market. The Rs 300 crore IPO opened for subscription on December 21 in the price band of Rs 313-315 apiece.

Off-market dealers are wary about sudden surge in the grey market premium from Rs 23-25 to Rs 70 and now Rs 90 in last 24 hours.

Dinesh Gupta, Co-founder of UnlistedZone, said, “Despite dull performance in the past, the surge in grey market premium represents bullish market sentiments.”

On Mrs Bectors, he said, “The company has performed much better in the first half of the current financial year. The FMCG sector has emerged as outperformer since lockdown, adding to the euphoria.”

“Also, the quirky response to IPO market is adding flavour to it,” he said. “Recent stellar listing of Burger King and Gland Pharma also helped push up subscription levels.”

Abhay Doshi, a Gujarat-based dealer of unlisted shares, believes the primary market has been on a roller-coaster ride of late. He said companies would reap the benefits of ecstatic primary and sound secondary market performances.

“Mrs Bectors has got supernatural subscription leading to higher premium. Antony Waste is primarily centered in MMR and NCR regions, which could be a major drawback for it,” he said.

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