InvestorQ : How is the Latent View Analytics trading in the grey market and what is the premium?
vaishnavi mhatre made post

How is the Latent View Analytics trading in the grey market and what is the premium?

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vidhya Laxmi answered.
2 weeks ago
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First and foremost, you must understand that the grey market price or the GMP is not an official price point but it is just a popular informal price point. While it is true that in most cases the GMP has proved to be a good informal gauge of demand and supply for the IPO, it does not have any official sanction. At best, the GMP gives a broad idea of how the stock could list based on an informal process of price discovery.

One of the key factors that has an effect on the GMP is the oversubscription ratio and normally greater the subscription, greater is the chance of a positive premium GMP for the stock. In the case of Latent View Analytics, the IPO was oversubscribed 326 times, so one can assume that the GMP would be favourable. Here is how the GMP panned out for Latent View Analytics.

A day ahead of listing, Latent View Analytics IPO was commanding a grey market premium of Rs.690 over and above the issue price. In fact, what is interesting is that the GMP doubled in just last 2 days from Rs.345 to Rs.690 levels. This keeps changing. On the IPO price of Rs.197, the GMP translates into a 250% premium. In other words, the listing price of Latent View could hover around Rs.887 when the stock lists on 18-Nov.

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