Despite price limits for SME IPOs by the NSE, grey market premiums (GMPs) for upcoming IPOs of Ganesh Green Bharat and Effwa Infra Research are soaring. Both IPOs have received strong investor interest and show high demand in the grey market.
Ganesh Green Bharat’s GMP is about 120% above its issue price, while Effwa Infra’s GMP is nearly 146% above its IPO price. Although NSE’s price cap means the listing price won’t exceed 90% of the IPO price, shares can still rise significantly afterward. Both companies are set to list on July 12.
Analysts’ Insights on NSE Price Cap Impact
Analysts say it will take some time for the NSE price cap to impact the entire market. Kush Gupta, Director at SKG Investment and Advisory, noted that investor excitement keeps the GMPs high as those holding shares in the grey market anticipate selling at a profit.
Impressive GMPs Despite NSE Cap
Ganesh Green Bharat’s IPO saw overwhelming demand, with a 200 times subscription rate. The funds from this IPO will be used for debt repayment, capital expenditure, working capital, and general corporate purposes. The company operates in various sectors including solar systems, electrical contracting, water supply projects, and solar module manufacturing.
Effwa Infra’s IPO, worth Rs 51.27 crore, was also highly subscribed, driven by interest from retail and non-institutional investors. The proceeds will be used for working capital, capital expenditure, and general corporate purposes.
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