IRFC vs Indigo Paints: Which One is the Better IPO according to the Grey Market?

Credit: © Reuters.

By Aditya Raghunath -- Indian Railway Finance Corp (NS:) and Indigo Paints Pvt Ltd (NS:) are both coming out with their IPOs this week. While IRFC’s IPO is closing for a subscription this present day, Indigo Paints is closing on January 22.

IRFC’s IPO used to be subscribed 1.22 conditions on the shut of day two (January 19) with the retail fragment oversubscribed by two conditions. On the opposite hand, the grey market just will not be any longer attaching a monumental premium to IRFC. In fact, the GMP (grey market premium) for IRFC has fallen to Rs 0.8 a fraction from Rs 1.3 a fraction for the reason that IPO used to be spread out for the subscription.

Indigo Paints goes sturdy within the grey market. It commands a premium of Rs 840, over 56% from its IPO mark of Rs 1,490 a fraction. This means one fragment of Indigo Paints is within the meanwhile trading at Rs 2,330 per fragment on the grey market.

As per the reported the day old to this, brokerages bear given IRFC a sturdy opt for investors who would like to invest for the long term. Wanting on the excessive GMP for Indigo Paints, analysts bear urged easiest investors with a excessive-threat chase for meals to subscribe for the IPO.

There could be one other IPO on the cards that's scheduled to birth on January 21, Home First Finance Company. Witness out for an diagnosis on that stock.