The euphoria that has gripped the initial public offering (IPO) market since last year showed some signs of abating, as some stocks made less than stellar public debuts while the grey market premiums for ongoing share sales narrowed sharply. The weak debuts have sent warning shots to investors that the Indian IPO gravy train may go off the rails. Last week, four IPOs raised a combined ₹2,107 crore, and this week, another four are raising money from the primary market. “Grey market premiums (GMPs) are falling because of too many IPOs at the same time, fund crunch with institutions, NBFCs, HNIs and retail, and too much greed. The IPO market is adjusting GMPs to a realistic value," said Ritesh K. Gupta, an adviser at IPO Mantra, a primary market advisory firm.

Source: Mint August 11, 2021 18:45 UTC