ResGen IPO: What GMP, subscription status signals as bidding ends today

ResGen IPO: The initial public offering (IPO) of ResGen Limited opened for subscription on 28th February 2022 and bidding for the book build issue is going to end today. As per ResGen IPO subscription status after day 2 of bidding, the public issue has been subscribed 1.03 times whereas retail portion of the issue has been subscribed 1.44 times. Pyrolysis oil maker company has fixed ResGen IPO price band at ₹45 to ₹47 per equity share and it is proposed for listing on BSE SME exchange. Meanwhile after two days of subscription, grey market sentiment has gone further positive on the public issue. As per the market observers, shares of ResGen Limited is available at a premium of ₹3 in grey market today.

ResGen IPO GMP today

As mentioned above, ResGen IPO GMP (grey market premium) today is ₹3, which was ₹2.50 per equity share on Wednesday. Market observers went on to add that grey market sentiments have surged in regard to ResGen IPO due to trend reversal on Dalal Street. They said that Indian stock market ended higher after losing on eight straight sessions and much will depend upon the subscription status as Thursday will be the last date to apply for the IPO. They said that grey market sentiments may rise further if Indian secondary market extends its pullback rally on Thursday session.

What this GMP means?

As ResGen IPO GMP today is ₹3, its means grey market is expecting that ResGen shares will list on BSE SME exchange at around ₹50 apiece levels ( ₹47 + ₹3), which is around 6.50 per cent of the upper price band of the book build issue. Market observers expected further rise in grey market sentiments as subscription status of the IPO is expected to gain momentum on last date of bidding.

However, stock market experts advised investors to stick with the basics as grey market sentiments are non regulated and completely speculative in nature. They said that grey market involved even those who have high stake involved in the public issue, so GMP can be artificial as well. They urged investors to scan balance sheet of the company and find out concrete fundamental indicators of the company.

ResGen IPO subscription status

As mentioned above, the public issue has been fully subscribed after two days of bidding. By day 2 of bidding, the public issue has been subscribed 1.03 times. In two days of bidding, ResGen IPO got subscribed 0.97 times in NII category whereas it got subscribed 0.75 times in QIB category.