Everything You Need to Know About Five Star Business Finance IPO GMP Today
If you have been following the latest news in the financial market, you might have come across the buzz around the Five Star Business Finance IPO (Initial Public Offering) GMP (Grey Market Premium) today. Let’s dive deep into understanding everything you need to know about this IPO GMP.
Introduction
Five Star Business Finance Limited is a leading non-banking finance company (NBFC) in India that provides structured finance to small and medium-sized enterprises (SMEs) in Tier-II and Tier-III cities. The company has announced its Initial Public Offering (IPO) on June 7, 2021, and the IPO is open for subscription from June 9, 2021, until June 11, 2021.
The IPO comprises a fresh issue of Rs. 1,000 crores and an offer for sale of up to 1,05,00,000 equity shares by the existing shareholders. The price band for the IPO is Rs. 490-500 per share, and the lot size is 30 shares per lot.
What Is IPO GMP?
Grey market premium (GMP) represents how much investors are willing to pay in addition to the IPO price to buy shares of the company before they are listed on the stock exchanges. GMP is an unofficial market where buyers and sellers deal in shares of the company before its listing on the stock exchanges.
In simple terms, if the IPO GMP is higher than the IPO price, it means the demand for the shares of the company is high. On the other hand, if the IPO GMP is lower than the IPO price, it indicates the demand for the shares of the company is low.
Five Star Business Finance IPO GMP Today
As of June 9, 2021, the IPO GMP of Five Star Business Finance Limited is Rs. 160-165 per share. It means investors are willing to pay Rs. 650-665 per share of the company in the grey market, which is higher than the IPO price range of Rs. 490-500 per share.
The current IPO GMP of Five Star Business Finance is a positive sign for the company as it indicates strong demand from investors. The high demand for the IPO shares can be attributed to the company’s strong presence in the SME lending market, its well-diversified loan portfolio, and its focus on credit risk management.
Conclusion
In conclusion, Five Star Business Finance is a leading NBFC that has announced its IPO, which is open for subscription until June 11, 2021. The IPO GMP of the company is currently at Rs. 160-165 per share, which is a positive sign that indicates strong demand from investors. The company’s strong presence in the SME lending market and its well-diversified loan portfolio make it an attractive investment option for investors.
However, before investing in the IPO, investors must carefully read the offer documents and consult with their financial advisors to make an informed investment decision.
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