NEW DELHI: One piece of collateral damage caused by the mayhem on the markets on Monday has been the grey market premiums on companies that recently concluded their public issues and are yet to be listed.
Reliance Power is now quoting at a premium of Rs 260, nearly a fifth lower than the premium of Rs 320 on Friday, when bids closed. Similarly, shares of the Kishore Biyani-owned Future Capital have also slid in the grey market. The grey market premium is quoting at Rs 525, compared to Rs 750 last Friday — a fall of around 23%.
According to a Delhi-based stock broker: “The premium in the grey market is going down due to weakness in the secondary market.
And Black Monday has further added to the woes.” As per brokerage houses, a lot is at stake for investors who have borrowed funds to invest in the Reliance Power IPO. This is because a lower premium in the grey market implies lower gains on the listing day. The premium that stays intact still promises handsome gains.
Reliance Power is now quoting at a premium of Rs 260, nearly a fifth lower than the premium of Rs 320 on Friday, when bids closed. Similarly, shares of the Kishore Biyani-owned Future Capital have also slid in the grey market. The grey market premium is quoting at Rs 525, compared to Rs 750 last Friday — a fall of around 23%.
According to a Delhi-based stock broker: “The premium in the grey market is going down due to weakness in the secondary market.
And Black Monday has further added to the woes.” As per brokerage houses, a lot is at stake for investors who have borrowed funds to invest in the Reliance Power IPO. This is because a lower premium in the grey market implies lower gains on the listing day. The premium that stays intact still promises handsome gains.
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