ESAF Small Finance Bank IPO:
ESAF Small Finance Bank’s initial public offering (IPO) opened for public subscription on Friday and was 1.74 times subscribed on the first day of subscription. Over ten times the number of shares available (5,77,28,408) were purchased in the Rs 463-crore IPO.
On Tuesday, November 07, the first public offering for the ESAF Small Finance Bank will end.
The amount invested by retail investors (RIIs) was 1.97 times subscribed to, while the amount invested by non-institutional investors (NIIs) was 2.44 times subscribed. Ninety per cent of the allotment reserved for QIBs was purchased.
ESAF Small Finance Bank raised Rs 135 crore from anchor investors on Thursday, just before the IPO.
On November 10, the business will hold its initial public offering allocation, and on November 16, it will likely begin trading on the BSE and NSE.
EASF IPO GMP TODAY
Market watchers report that the unlisted share price of ESAF IPO GMP Today is still Rs 20 more than its issue price on the grey market. Compared to its top issue price of Rs 60 per share, the GMP of Rs 20 represents a markup of approximately 33.33 %. This suggests the grey market is anticipating a 33.33 % increase in value due to the public issue listing.
The Grey market premium is when investors are willing to pay for a share price more than the issue price, this is called a “grey market premium.” Grey market is an unregulated market where the Buying and Selling of the shares takes place
EASF Small Finance bank IPO GMP :
GMP is a good reflection of the true stock story. More than the actual price, the GMP trend over time provides information about which way the wind is blowing. Here is a quick GMP overview for the ESAF Small Finance Bank IPO that has data.
Date | Grey Market Price (GMP) |
5-Nov-2023 |
₹20 |
4-Nov-2023 |
₹20 |
3-Nov-2023 |
₹20 |
2-Nov-2023 |
₹9 |
As can be seen from the GMP trend in the chart given above, the grey market premium opened at a price of roughly ₹9 but has remained unchanged at ₹20 on both days for which data is available. Since ESAF Small Finance Bank Ltd’s IPO price wasn’t revealed until the morning of October 31, the accurate GMP may not become apparent until much later.
The amount of subscriptions received once the issue opens for subscription on November 03, 2023, will have a significant bearing on the GMP, so we’ll need to keep an eye on that as well. Stocks oversubscribed at their initial public offering (IPO) have a history of experiencing a significant upward movement in grey market price. For a start, ESAF Small Finance Bank Ltd has shown good momentum in the grey market.
The GMP indicator suggests a listing price of roughly ₹80 per share on November 01, 2023, which is above the upper end of the price band for the IPO of ESAF Small Finance Bank Ltd, which is set at ₹60. The stock subscription update is a crucial piece of information that will help determine the GMP’s future direction.
About the GMP pricing for ESAF Small Finance Bank IPO
Typically, GMP trading begins four to five days before the IPO launch and continues through the listing date. For ESAF Small Finance Bank Ltd, we have access to GMP data for the previous two days; this should provide a good indication of the bank’s likelihood of being listed.
The GMP is affected by two distinct variables. As a first point, the GMP is significantly affected by the market conditions, especially the market’s liquidity. Second, the GMP is heavily influenced by the level of investor interest shown by the IPO’s subscription, which the number of shares purchased may measure. A negative GMP would mean that the stock would be listed below its issue price.
There is one minor detail to keep in mind. The GMP is an unofficial but widely used benchmark for pricing. However, it has been noted that in most situations, it serves as a non-formal solid barometer of demand and supply for the IPO. Therefore, it provides a general notion of the listing’s expected outcome and the stock’s performance after listing.
Listing price of ESAF Small Finance Bank
The listing premium for ESAF Small Finance Bank Ltd over the IPO issue price is a solid 33%, as indicated by the GMP of ₹20 on the upper end of the book-constructed IPO price of ₹60. That assumes a share price of about 80 when ESAF Small Finance Bank Ltd debuts on the stock market on November 16, 2023. Of course, they are just estimates, so you should always leave some room for error.
The best indicators of GMP listing status can be gleaned from regularly monitoring its trend. Instead of focusing on the GMP absolute figures, consider the time series trend.
What you need to do to get into the ESAF Small Finance Bank IPO
People who want to invest in ESAF Small Finance Bank Ltd can do so in minimum lot amounts. The lot size is only for the IPO. Once listed, it can be sold in multiples of one share because it’s a mainboard issue.
People who want to invest in the IPO can only do so in minimum lot sizes and multiples of those sizes. Regarding ESAF Small Finance Bank Ltd, the smallest lot amount is 250 shares, and the largest is 15,000. To sum up, people who want to buy in an IPO can only do so in lots of 250 shares or more. In the IPO of ESAF Small Finance Bank Ltd., the table below shows the minimum and highest lot sizes for different types of investors.
Application | Lots | Shares | Amount |
Retail (Min) | 1 | 250 | ₹15,000 |
Retail (Max) | 13 | 3,250 | ₹1,95,000 |
S-HNI (Min) | 14 | 3,500 | ₹2,10,000 |
S-HNI (Max) | 66 | 16,500 | ₹9,90,000 |
B-HNI (Min) | 67 | 16,750 | ₹10,05,000 |
It is important to highlight at this point that there are no maximum limits applicable for either the B-HNI category or the QIB (qualified institutional buyer) category.
ESAF Small Finance Bank IPO GMP Today is ₹20
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