Western Carriers IPO: GMP signals disappointing return after announcement of allotment status. Listing date in focus

Western Carriers India IPO: The share allotment process of the initial public offering (IPO) of Western Carriers (India) Limited has been finalised, and now lucky allotees are eagerly waiting for the announcement of Western Carriers India IPO listing date. Following the 'T+3' listing rule, the most likely date for share listing is 24th September 2024; hence, market observers and share allottees are expected to remain vigilant about the grey market premium (GMP) regarding Western Carriers India IPO.

Western Carriers India IPO GMP today

According to stock market observers, Western Carriers India IPO GMP may disappoint share allottees as the Western Carriers India IPO GMP today is just ₹21, ₹31 lower than Friday's Western Carriers India IPO GMP of ₹52. They said the fall in the Western Carriers India IPO grey market premium is disappointing as the secondary market mood is bullish, and frontline indices on Dalal Street hit a record high. However, they maintained that the fall in GMP was typical after the share allocation and expected that no further fall would occur in Western Carriers India's IPO GMP. They said that the grey market adjusts with the fair value of the company shares ahead of the share listing date, and the fall in the Western Carriers India IPO GMP today has to be seen from this perspective.

Western Carriers India IPO listing price

What does this Western Carriers India IPO GMP mean? Market observers said the grey market indicates that the Western Carriers India IPO listing price could be around ₹193 ( ₹172 + ₹21). This means that the grey market is currently signalling a positive but not very promising return for the lucky allottees of the public issue.

However, stock market observers maintained that the GMP is not an ideal indicator to assess the kind of listing gain an allottee would get from an initial offer. They said that GMP is non-regulated and has no connection with the company's financials. They advised Western Carriers India IPO allottees to stick with the basics and rely on the conviction they have developed after scanning the company's balance sheet before investing in the mainboard issue.