In the busy IPO season, the secondary market remains volatile as the premia in the grey market for the companies that a listing bound are hugely diminishing. The rising concerns over the new covid variant omicron and the views from the Federal Reserve and inflation have worried the unofficial market.
However, dealers have now started tracking the grey market and have said that few companies were losing their grounds because of issues like fewer subscriptions and price evaluations. Allied Insurance Company and Star Health are currently trading at a discount of about rupees 75 to 80. The company is scheduled to get listed on Friday.
Abhay Doshi, the co-founder of Unlisted Arena said that both Anand Rathi Wealth and Star Health were becoming expensive and completely failed to attract a larger group of investors. The market activities have also dipped down due to the growing selling pressure.
Tega Industries, another listing candidate is also said to have started using its ground in the unofficial market. The company’s premium has been reduced to Rs 310 to 320 from Rs 450 to 460 within a week. As per the research analysts, they don’t think that the primary market and IPO will improve, and also the premium issue would go higher in the next week. Improvement in the secondary market might see a further downfall.
