IPO GMP: How much do grey market signals gain from the IPOs of Ajax Engineering, Hexaware Technologies, and Quality Power?

IPO GMP: Due to market pressures, IPO enthusiasm has waned this week. Hexaware Technologies and Quality Power are facing difficulties, however Ajax Engg's IPO was completely subscribed. In the face of high valuations and market uncertainty, grey market premiums are trending downward, suggesting investor caution.

IPO GMP: The usual enthusiasm for initial public offerings (IPOs) seems to have subsided this week, since the Indian stock market has been under a lot of selling pressure due to worries about high prices, market volatility, and global economic uncertainty, which has a big impact on the main market. The initial public offerings (IPOs) of Ajax Engineering, Hexaware Technologies, and Quality Power Electrical Equipments were launched this week. According to analysts, the Offer for Sale (OFS) element and significant secondary market losses were among the factors that affected the investors' reaction.

Details of the IPO

In relation to the problems, the three-day share sale ended with a subscription rate of 6.45 times when the concrete equipment maker Ajax Engineering Ltd.'s IPO was completely subscribed on the last day of bidding on Wednesday. The company's initial public offering (IPO) comprises an offer-for-sale (OFS) of 2.01 crore shares from its promoters and an investment shareholder, totaling ₹1,269 crore at the highest price point.

The Hexaware Technologies IPO, which was started by its promoter CA Magnum Holdings, which is connected to the Carlyle Group, is also a full offer-for-sale (OFS) of equity shares valued at ₹8,750 crore. It is having trouble getting enough interest before it closes today.

A new issue of equity shares up to ₹225 crore and an OFS of 1.5 crore equity shares priced at ₹634 crore at the highest price point are part of the Quality Power IPO, which started today. The total issue size now stands at ₹859 crore, although the response has been lackluster thus far.

Which IPO should I apply for?

The founder of Kejriwal Research and Investment Services, Arun Kejriwal, talked about the two different challenges that are currently at play, claiming that the first is a manufacturing company and the second is an IT company that focuses on providing services. Because they work in separate industries, it is difficult to compare the two. Additionally, the fact that one is in the power industry, which also involves a little design and software component carried out in Turkey, albeit that makes up a very small portion of their business, is the reason for the non-comparability. In essence, they offer a controlled system for the equipment they give, so any comparison would be completely out of place.

Although Quality may receive a higher number of subscribers than Hexaware, its valuation is by no means low. A poor response is to be expected if the market declines.

Let's examine the premium tendencies in the grey market:

IPO GMP

Today's Ajax Engineering IPO GMP

Today's Ajax Engineering IPO GMP is +7, or Ajax IPO GMP. According to investorgain.com, this shows that the share price of Ajax Engineering was selling at a premium of ₹7 on the grey market.

The expected listing price of Ajax Engineering shares was ₹636 apiece, which is 1.11% higher than the IPO price of ₹629, taking into account the top end of the IPO pricing band and the current premium in the grey market.

The current GMP (₹7) suggests a downward trajectory based on the grey market trends seen over the previous 11 sessions. According to specialists at investorgain.com, the smallest GMP recorded is 0.00, and the maximum GMP is ₹58.00.

Investors' willingness to pay more than the issue price is shown by the "grey market premium."

Today's Hexaware Technologies IPO GMP
The gray market premium for Hexaware's IPO is +2. According to investorgain.com, this shows that the share price of Hexaware Technologies was selling at a premium of ₹2 on the grey market.

The expected listing price of Hexaware Technologies shares was ₹710 per share, which is 0.28% higher than the IPO price of ₹708, taking into account the top end of the IPO pricing band and the current premium on the grey market.

Due to grey market movements during the last nine sessions, the current IPO GMP is on a negative trend and is predicted to continue to decline. The lowest GMP is ₹2, and the highest is ₹19, according to experts at investorgain.com.

Today's Quality Power IPO GMP
Today's Quality Power IPO GMP is +14. This shows that, according to investorgain.com, the price of Quality Power's shares was selling at a premium of ₹14 on the grey market.

The expected listing price of Quality Power shares is ₹439 each, which is 3.29% more than the IPO price of ₹425 when taking into account the upper end of the IPO pricing band and the existing premium on the grey market.

The IPO GMP is now going lower and could continue to do so, based on the grey market activity seen over the previous seven sessions. The lowest GMP, according to investorgain.com experts, is ₹14, while the highest GMP is ₹135.