IPO GMPs: Globe Civil Projects IPO vs Ellenbarrie IPO vs Kalpataru IPO: What grey market signals?

The initial public offering (IPO) scene is set for a lively week, with five new public offerings including the Globe Civil Projects IPO, Ellenbarrie Industrial Gases IPO, and Kalpataru IPO entering the primary market today (Tuesday, June 24), although the rate of subscriptions is gradual. This influx follows a consistent increase in investor enthusiasm, highlighting the ongoing demand for new equity offerings.

Analysts suggest that the market sentiment remains generally positive, supported by improving macroeconomic indicators, favourable liquidity conditions, and rising participation from both institutional and retail investors. The strong performance of recent IPOs continues to boost confidence and promote wider interest in the primary market.

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, asserts that the three companies—Ellenbarrie Industrial Gases, Globe Civil Projects, and Kalpataru—operate in distinct sectors and cannot be compared directly.

Discussing them one by one, Kejriwal mentioned that Globe Civil Projects is relatively small in size and turnover, making it impractical for investors to consider it for significant returns.

Kalpataru, on the other hand, faces challenges related to debt and inventory, rendering it a less favorable and secure real estate investment at the moment, as it requires a longer-term perspective and the potential for medium-term returns remains uncertain.

As for Ellenbarrie Industrial Gases, although its valuation may appear steep at 70 times, it is actually more affordable compared to its competitors, which are valued at 130 times.

A positive aspect of Ellenbarrie is that it is a smaller company currently undergoing substantial expansion.

Of the three, Ellenbarrie Industrial Gases comes as the safest bet.

Let's take a look at the grey market premium trends:

Ellenbarrie Industrial Gases IPO GMP today is +7. This indicates Ellenbarrie Industrial Gases share price was trading at a premium of ₹7 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ellenbarrie Industrial Gases share price is indicated at ₹407 apiece, which is 1.75% higher than the IPO price of ₹400.

Following the grey market activities from the past 12 sessions, the current IPO GMP is showing an upward trend and is anticipated to have a robust listing. The minimum GMP is ₹0.00, whereas the maximum GMP is ₹12, as stated by experts from investorgain.com.

Globe Civil Projects IPO GMP today is +15. This indicates Globe Civil Projects share price was trading at a premium of ₹15 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Globe Civil Projects share price is indicated at ₹86 apiece, which is 21.13% higher than the IPO price of ₹71.

Kalpataru IPO GMP today is +9. This indicates Kalpataru share price was trading at a premium of ₹9 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Kalpataru share price is indicated at ₹423 apiece, which is 2.17% higher than the IPO price of ₹414.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.