MV Electrosystems, Juniper Green set for D-St debut: What does GMP signal?
IPO listing: MV Electrosystems IPO GMP signals 24 per cent listing gains on Thursday, while Juniper Green Energy shares could debut at a 7 per cent pop.
 "MV Electrosystems, Juniper Green set for D-St debut: What does GMP signal?")
Two stocks, MV Electrosystems and Juniper Green, are poised for their Dalal Street debuts on Thursday, August 6, following strong demand for their initial public offerings (IPOs) earlier this week. The mainboard offers had opened for bidding on July 30 and closed on August 3.
The grey market trend signals listing gains for the IPOs, with MV Electrosystems having the upper hand between the two. Here's what to expect:
MV Electrosystems IPO GMP
MV Electrosystems' ₹290 crore IPO became one of the most sought-after public offerings this year as the offer clocked 188.85 times the bids, according to the data available on NSE. The demand for the shares remained strong in the unofficial market as well, as suggested by the grey market premium (GMP).
Websites tracking the grey market signal that MV Electrosystems IPO GMP today is ₹102 per share. At this level, the shares are trading at ₹527, suggesting a listing pop of 24 per cent over the offer price of ₹425.
The offer, priced at ₹400 to ₹425 apiece, was entirely a fresh share sale. It plans to use the proceeds for funding long-term working capital needs, invest in research, design and development activities for new power electronic equipment, along with general corporate purposes. Analysts had mixed views on the IPO, with some hailing its robust growth prospects and others flagging its loss-making status. Also Read | Manipal Health lists at 11% premium; should you buy?
MV Electrosystems stands as a key player within India’s rail infrastructure transition by virtue of its indigenous in-house design & development of 3-Phase Propulsion Equipment.
Juniper Green Energy IPO GMP
Unlike MV Electrosystems, Juniper Green Energy IPO GMP is a more modest 7 per cent. The shares of Juniper Green are trading at ₹241.5 in the grey market currently as against the offer price of ₹225.
The company's offer was booked 7.97 times, with the qualified institutional buyers (QIBs) doing the heavy lifting. Their portion was booked the most at 24.94 times, followed by the non-institutional investor (NII) segment at 1.82 times. The retail quota did not sail through and was booked just 0.93 times.
The renewable energy power producer was looking to raise ₹1,800 crore via a fresh issue of shares. These proceeds will be utilised for repayment of certain corporate borrowings and investment in material subsidiaries, along with general corporate purposes. Most analysts had positive views on Juniper Green Energy IPO.