GMP of Rainbow Children’s Medicare witnesses a surge ahead of its IPO opening date
- ByStartupStory | April 25, 2022
Rainbow Children’s Medicare IPO is opening for subscription on 27th April 2022. The public issue worth INR 1,595 crore will remain open till 29th April 2022. According to market analysis, Rainbow Children’s Medicare share price is quoted at a premium of ₹50 in the grey market today.
As per the market observers, Rainbow Children’s Medicare IPO grey market premium (GMP) today is ₹50, which is ₹15 higher than Sunday’s grey market premium of ₹35. Observers noted that the rise in GMP can be viewed as a good signal from the grey market as secondary market sentiment has been negative for the last 2 sessions, and today stock market has opened in red territory.
The observers added that there would be sharp upside movement in Rainbow Children’s Medicare share price in the grey market once there is a trend reversal in the secondary market. In the last few days, Rainbow Children’s Medicare IPO GMP had dipped from INR 53 to INR 35. So, today’s rise is expected to provide some respite to those who are planning to invest in the public issue.
Rainbow Children’s Medicare IPO GMP today is ₹50, which indicates that the grey market expects Rainbow Children’s Medicare IPO to list at around ₹592, which is around 9% from its upper price band of INR 542 per equity share. Stock market analysts have, however, warned IPO investors to not make an investment decision only based on GMP. They said that GMP has nothing to do with the company’s financials and is often unofficial and non-regulated data.
Commenting on Rainbow Children’s Medicare IPO, Abhay Doshi, Founder at UnlistedArena.com, said, “On the operational front, the startup has posted steady top and bottom-line numbers. However, 9MFY22 performance seems to be exceptional. At the upper price band, pre-fresh issue, the asking PE comes around 128x, and the Market cap to revenue comes to nearly 8x based on FY21 financials. The asking valuations is in-line with listed players. However, It would be keen to watch if Rainbow Children’s medicare can maintain 9MFY21 performance going ahead.”
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