Why is Indegene IPO GMP Trending? – News Club

Indegene IPO GMP Trending

The upcoming IPO of Indegene Limited has captured investor interest, with a key indicator – the Grey Market Premium (GMP) – trending upwards. But what exactly is the GMP, and why is it significant for Indegene’s IPO? Let’s delve into these aspects and understand the factors driving the GMP for this public offering.

Understanding Grey Market Premium (GMP)

The Grey Market is an unofficial market where potential buyers and sellers trade unlisted securities like upcoming IPO shares. The GMP is the difference between the issue price of an IPO (the price at which the company offers shares) and the price at which these shares trade in the Grey Market. A positive GMP indicates that the Grey Market price is higher than the issue price, suggesting potential investor demand exceeding the available shares.

Indegene’s GMP Trend and Investor Interest

Indegene’s IPO opened for bidding on May 6, 2024, with a price band of ₹430 to ₹452 per share. The face value of the shares is ₹2. In the days leading up to the IPO, the GMP for Indegene shares witnessed a significant rise. According to reports, the GMP started at around ₹160 and climbed to ₹246 by the opening day of the subscription. This upward trend suggests strong pre-IPO investor interest, potentially anticipating a good listing price on the stock exchange.

Indegene IPO Date & Price Band Details

  • IPO Open: May 6, 2024
  • IPO Close: May 8, 2024
  • IPO Size: Approx ₹1841.76 Crores
    • Fresh Issue: Approx ₹760 Crores
    • Offer for Sale: Approx ₹1081.76 Crores
  • Number of Equity Shares: 2,39,32,732
  • Face Value: ₹2 Per Equity Share
  • IPO Price Band: ₹430 to ₹452 Per Share
  • IPO Listing on: BSE & NSE
  • Investor Quota Distribution:
    • Retail Quota: 35%
    • QIB Quota: 50%
    • NII Quota: 15%

Factors Driving the GMP for Indegene IPO

Several factors might be contributing to the positive GMP trend for Indegene’s IPO:

  • Growth Potential of the Life Sciences Sector: Indegene operates in the life sciences sector, which is experiencing significant growth due to advancements in healthcare and biotechnology. Investors might be looking to tap into this growth potential by subscribing to the IPO.

  • Unique Business Model: Indegene offers digital solutions specifically tailored for the life sciences industry. This unique business model, with a strong focus on technology, could be seen as attractive by investors seeking exposure to this niche segment.

  • Strong Financials: Pre-IPO financial reports of Indegene might be indicating positive financials, with healthy revenue growth and profitability. This could be reassuring for potential investors.

  • Positive Analyst Reviews: Analyst reports on Indegene might be positive, highlighting the company’s prospects and future potential. These positive reviews could be influencing investor sentiment.

  • Partial Subscription by Institutional Investors: News reports suggest that the Non-Institutional Investor (NII) portion of the IPO was fully subscribed on the first day. This early enthusiasm from retail and non-institutional investors could be fueling the optimism in the Grey Market.

Important Considerations Beyond GMP

While the GMP is an indicator of investor sentiment, it’s crucial to remember that it’s not an infallible predictor of the listing price or the company’s future performance. Here are some additional factors to consider before making an investment decision:

  • Company Fundamentals: Investors should carefully analyze Indegene’s financial statements, business model, and future growth prospects.

  • Risk Factors: Understanding the potential risks associated with the company and the industry is essential.

  • Valuation: Compare the IPO price with the company’s valuation based on various metrics.

  • Investment Goals: Align your investment decision with your overall financial goals and risk tolerance.


The trending GMP for Indegene’s IPO signifies strong pre-IPO investor interest. However, it’s important to go beyond the hype and conduct thorough research before making an investment decision. By carefully analyzing Indegene’s fundamentals, potential risks, and aligning the investment with your financial goals, you can make an informed decision about subscribing to the IPO.

About Ashish Singh

I am a blogger and writer too. I love to write on business, finance, lifestyle, digital marketing, and technology.

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