Baba Food Processing IPO is scheduled to open for subscription from November 3, 2023, and will conclude on November 7, 2023. The company’s shares have a face value of ₹10 each, and the IPO price range for the book-building issue falls between ₹72 to ₹76 per share, allowing the final price to be determined within this range. It’s important to note that the Baba Food Processing India Ltd IPO consists solely of a fresh issue component, with no book-built portion.
Within the fresh issue component, the company plans to issue a total of 43,42,105 shares, which is approximately 43.42 lakh shares. At the upper end of the IPO price band, which is ₹76 per share, this totals a fund-raising amount of ₹33 crore. Since there is no offer for sale portion, the overall IPO size will also comprise the issuance of 43,42,105 shares, amounting to ₹33 crore at the upper price band of ₹76 per share.
As is customary for SME IPOs, this issue includes a market-making segment with an inventory allocation of 2,17,600 shares. Nikunj Stock Brokers Ltd will serve as the market maker, offering two-way quotes to ensure liquidity and low basis costs after the stock’s listing.
The IPO will result in a dilution of the promoter’s stake in the company, Yogesh Kumar Sahu, from 99.99% to 73.42%. The funds raised through the fresh issue will be utilized for various purposes, including investments in the wholly-owned subsidiary Panchakanya Foods, purchasing machinery for producing Besan and Sattu, and fulfilling working capital requirements. Horizon Management Private Ltd will serve as the lead manager for the IPO, with MAS Services Ltd as the issue registrar.
About the Baba Food Processing India IPO GMP
The Grey Market Price (GMP) typically commences trading around 4-5 days before the IPO opens and extends up to the listing date. In the case of Baba Food Processing India Ltd, GMP data for the last 2 days is already available, which provides a reasonable indication of the expected listing performance.
Two main factors influence the GMP. Firstly, market conditions, particularly liquidity levels in the market, have a significant impact on the GMP. Secondly, the extent of subscription to the IPO reflects investor interest and also strongly affects the GMP. It’s important to note that GMP can technically be in the negative, indicating that the stock may list at a discount to the issue price.
It’s crucial to remember that the GMP is not an official price point but rather an informal one. Nevertheless, in most cases, it has proven to be a useful informal indicator of demand and supply for the IPO. Hence, it does provide a general idea of the likely listing performance and the post-listing performance of the stock.
How has the GMP panned out in last few days?
GMP tends to be a good mirror of the real stock story. More than the actual price, it is the GMP trend over time that gives insights about which direction the wind is blowing. Here is a quick GMP summary for Baba Food Processing India IPO for which the data is available.
| Date | Grey Market Price (GMP) |
| 09-Nov-2023 | ₹15 |
| 08-Nov-2023 | ₹15 |
| 07-Nov-2023 | ₹30 |
| 06-Nov-2023 | ₹30 |
| 05-Nov-2023 | ₹30 |
| 04-Nov-2023 | ₹30 |
| 3-Nov-2023 | ₹35 |
| 2-Nov-2023 | ₹30 |
| 1-Nov-2023 | ₹30 |
| 31-Oct-2023 | ₹24 |
| 30-Oct-2023 | ₹24 |
The GMP trend for the Baba Food Processing India Ltd IPO indicates that it opened at around ₹24 and has since remained steady at ₹30 based on the available data. However, it’s important to note that this information is still subject to change based on the actual subscription numbers once the IPO opens on November 3, 2023.
Historically, stocks that have been oversubscribed in the IPO tend to see a significant positive shift in the grey market pricing. The strong traction observed in the grey market for Baba Food Processing India Ltd is an encouraging sign.
Assuming the upper band price of ₹76 per share for the IPO, the GMP suggests a likely listing price of around ₹100 per share, as of October 31, 2023.
Baba Food Processing IPO GMP FAQs:
What is Baba Food Processing IPO GMP Today?
Baba Food Processing IPO GMP is ₹15as of today.
What is Baba Food Processing IPO Kostak Rate Today?
Baba Food Processing IPO Kostak Rate is ₹- as of today.
What is Baba Food Processing IPO Expected Returns?
Baba Food Processing IPO Expected Returns is 20%.
Disclaimer:
GMP of Baba Food Processing mentioned here is only valid for the date specified in the header. We want to make it clear that we are not involved in buying or selling IPO forms in the IPO Grey Market.
The Kostak Rate represents the extra amount someone can earn by selling their IPO application to another person in a private transaction, even before the shares are officially allocated or listed.
We strongly NOT RECOMMEND subscribing to an IPO solely based on the premium price you see here, as it can change at any time before the company’s shares are listed. It’s essential to make your decision to invest by considering the fundamental factors of the companies involved.