Vishal Nirmiti IPO Day 2: GMP Soars to 16% Amid Strong Subscription—Is it Time to Invest?

The Vishal Nirmiti IPO has opened for subscription, with a public issue of Rs 178 crore that includes both a fresh issue and an offer for sale (OFS). The price band has been set at Rs 208-220 per share, and investors are required to buy a minimum of 68 shares, translating to an investment of Rs 14,960 at the upper price limit. The IPO is set to close on October 5, with IPO allotment expected by October 6 and a tentative listing on the NSE and BSE slated for October 8.

On its opening day, the IPO saw a modest subscription of 5% overall, with retail investors contributing a 6% subscription. Sentiment in the grey market appears bullish, with the IPO commanding a premium of Rs 35 or 16% over the upper end of its price band. This positive signal suggests that the market anticipates a premium listing, potentially leading to an estimated listing price of around Rs 255 based on the current grey market performance.

For Indian investors, the Vishal Nirmiti IPO presents a credible investment opportunity, especially considering the company’s established position in railway infrastructure and ongoing growth driven by increased capital expenditure in the infrastructure sector. Analysts from Anand Rathi have assigned a “Subscribe – Long Term” rating, indicating that while the IPO is fully priced, it offers strong long-term growth potential as a part of a diversified investment portfolio.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)