The initial public offering (IPO) of Gujarat-based engineering fabrics manufacturer, Kusumgar Limited, has continued to garner significant attention from investors. As of 5:30 pm on the second day, Thursday, July 9, the subscription status reached approximately 13.88x. This level of participation reflects strong market confidence in the firm during the current bidding window.
Understanding Grey Market Premium Trends
Even with robust subscription numbers, the grey market premium (GMP) for the Kusumgar IPO witnessed a decline for the second consecutive session on Thursday. The current GMP stands at Rs 155 per share. Based on this, the estimated listing price for the stock is projected to be around Rs 574, which combines the upper price band with the existing premium. Investors are currently factoring in an expected percentage gain of approximately 36.99% per share. It is important to note that the GMP does not serve as a definitive indicator of how the stock will perform on its actual listing day, as it purely reflects demand dynamics within the unregulated grey market space.
Key Investment Details
Investors looking to participate in the offer have until July 10 to submit their bids. The final allotment process is expected to be concluded by July 13. The company has fixed its IPO price band between Rs 398 and Rs 419 per share. For retail participants, the lot size is set at 35 shares per application. Consequently, the minimum investment requirement for an individual retail applicant is Rs 14,665 to successfully place a bid in the current offering.
