The Smartworks Coworking Space Initial Public Offering (IPO) will be open to the investors tomorrow on July 10, Thursday. Before the IPO opening, the shares of this company are available at a premium of Rs 29 in the grey market today. As per the experts, if the GMP value is very high, then it indicates that the IPO may perform better on listing or bumper listing. For example: If the IPO issue price is Rs 500 and the GMP is Rs 150, the listing is likely to be at Rs 650 (30% gain). The IPO will remain open to the public until July 14, 2025.
What is they Grey Market Premium (GMP)?
The GMP means Grey Market Premium, which is the additional amount that the investors are willing to pay for any IPO share in the unofficial or grey market, before the share lists officially on the stock exchange. The grey market is not regulated but it is important for every IPO because the investors get an idea about the potential demand of the IPO.
Should the investors subscribe to the Smartworks Coworking IPO?
There is a mixed response from the investors regarding the IPO of Smartworks Coworking. A brokerage firm Anand Rathi Shares & Stock Brokers stated that this IPO has a subscribe for long-term rating on the issue. The brokerage firm stated that Smartworks Coworking is valued at P/S of 3.3x at the upper price band with EV/EBITDA of 9.7x. Also, according to the Anand Rathi Shares & Stock Brokers, the market cap of Rs 46,448 million post issue of equity shares. However, the brokerage firm State Bank of India (SBI Securities) differ on this stand from the Anand Rathi Shares & Stock Brokers. SBI Securities has suggested the investors to ‘avoid’ this IPO due to its costly valuations and consistent losses in the business.
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