Will Azad Engineering Limited fare well in the IPO Journey?

As the allotment status of Azad Engineering Limited's initial public offering (IPO) is announced, market observers are closely watching the Grey Market Premium (GMP) to gauge investor sentiment. Shares of the company are currently trading at a premium of ₹301 in the grey market, indicating a 57 percent increase over the IPO price of ₹524 per equity share. The anticipated listing date for Azad Engineering is set for December 28, 2023.

Analysts believe that the strong response from investors during the public issue could lead to significant listing gains. However, they caution that GMP is a speculative metric and may not accurately reflect the actual listing price. The grey market is known for its non-regulated nature and lack of correlation with a company's financials, making it susceptible to fluctuations.

Despite the GMP holding steady at ₹301, experts emphasize the importance of considering other factors, such as market sentiment and overall demand. Investors are advised to exercise caution and seek advice from certified experts before making any investment decisions.

To check the IPO allotment status, applicants can visit the BSE website (bseindia.com/investors/appli_check.aspx) or the official registrar's website (kprism.kfintech.com/ipostatus). KFin Technologies has been appointed as the official registrar for the bookbuild issue.