The VMS TMT IPO is attracting strong attention from investors, and its Grey Market Premium (GMP) shows high demand. With the issue size of around ₹148.50 crore and a price band of ₹94–₹99 per share, the company is looking to raise funds to expand its business. Investors are closely watching the grey market, which often gives an early signal of how shares might perform on listing day.
What is GMP and Why It Matters
GMP, or Grey Market Premium, is the price at which IPO shares are being traded in the unofficial market before listing. If investors are willing to pay more than the official IPO price, it means they expect the stock to list higher. While it is not regulated and can change quickly, GMP provides a general idea of investor mood.
VMS TMT IPO GMP Trend
As of the latest updates, the GMP for VMS TMT IPO is in the range of ₹22 to ₹24 per share. This means investors in the grey market are ready to pay ₹22–₹24 more than the upper issue price of ₹99.
If this trend continues, the expected listing price could be around ₹121–₹123 per share. This reflects a potential premium of about 22–24% over the IPO price. Such a premium is considered strong and signals that the IPO may open positively on the stock exchanges.
Why Investors are Excited
Several factors are boosting investor interest in VMS TMT IPO:
Read More: Urban Company IPO: Key Details, Dates, Price Band and Financials
- Strong demand in subscription – The IPO has received healthy bids across retail and non-institutional investor categories.
- Sector growth – TMT bars are widely used in construction, and with infrastructure demand rising, the company’s products have a good market.
- Reasonable pricing – With a price band of ₹94–₹99, many see the valuation as attractive compared to peers.
Because of these factors, the grey market premium is holding steady and showing strength.
Risks of Depending on GMP
Even though GMP is a popular tool for gauging sentiment, it is important to remember that it is unofficial and unregulated. Prices in the grey market can rise or fall sharply depending on news, subscription status, and overall market conditions. A high GMP does not guarantee strong listing gains.
Sometimes, stocks list below expectations even if the grey market premium was high. On the other hand, if market sentiment improves, the stock could list even higher than the GMP suggests.
Expected Listing Performance
If current GMP levels hold, investors who receive shares in allotment could see a gain of ₹22–₹24 per share on listing day. For example, at the upper issue price of ₹99, a listing around ₹122 would give nearly 23% profit. This makes VMS TMT one of the more attractive IPOs currently in the market.
However, investors should also focus on the company’s fundamentals rather than only relying on short-term grey market trends. Strong long-term growth will matter more than initial listing gains.
Final Takeaway
The VMS TMT IPO GMP is showing positive signals, with a premium of ₹22–₹24 above the issue price. If momentum continues, the IPO could reward investors with solid listing gains. At the same time, market conditions can change quickly, and GMP should be seen only as an indicator, not a guarantee.
For investors who believe in the company’s growth potential, applying in the IPO could be worth considering, both for listing gains and long-term value.
Disclaimer: This article is for informational purposes only. Grey Market Premium (GMP) is unofficial and unregulated. Investors should do their own research or consult a financial advisor before making investment decisions.
