The IPO has returned to the market after a few months of lethargy. In the last few weeks, many big and SME companies have come. This has also increased the movement in the gray market. Investors have increased interest in the price of unlisted shares of NSE, Hero Fincorp and HDB Financial. Last month, the price of unlisted shares of NSE reached a record high of Rs 2, 300. Investors have also increased interest in shares of Hero Fincorp and HDB Financial. The reason for this is that the movement has increased due to the possible IPOs of the three companies.
Gray market prices give a glimpse of stocks of stocks
Experts say that the rise in the prices of unlisted shares in the gray market means that the eyes of retail investors are on their IPOs. Krishna Patwari, founder and managing director of Wealth Wisdom India, said that investors are investing in shares in the gray market to earn profits on listing. The trend of unlisted shares prices reveals the demand and supply status and sentiment of that share.
NSE shares have reached a record high of Rs 2,300
The premium for the price of the Anilisted stock in the gray market indicates how many premium its listing will be. However, it cannot be trusted blindly. Actually, when the supply of a stock is less than the demand, then its prices seem to be jump. A similar situation is visible in NSE shares. The NSE share was priced at Rs 1,600 on 1 May. He increased to Rs 2,375 on 31 May. This shows that the sentiment is very strong about this stock.
6 months lock-in period for pre-IPO investors
Experts say that retail investors should not have a hurry to invest in the gray market by looking at the premium of insignificant shares. They should first understand liquidity, lock-in period, valuation and business risk.
There will be no chance to book profit immediately on listing
If an investor is thinking that after buying shares in the gray market, it can not happen if he sells the profit on listing. The reason for this is that there is a 6-month lock-in period for pre-IPO investors. This means that despite the listing gains, the investor will not be able to sell his shares immediately.
