Bengaluru-based DCX Systems, a Bengaluru-based manufacturer of cables and wire harness assemblies, commanded a premium in the grey market — or an unofficial market for unlisted securities — a day after the company's IPO concluded with a strong response across different types of investors. The IPO — to raise up to Rs 500 crore — included fresh issuance of shares worth Rs 400 crore.
Dealers said the IPO commands a premium of around 70-80 in the grey market.
| Date | GMP (in rupees) |
| Nov 3 | 80 |
| Nov 2 | 80 |
| Nov 1 | 70 |
| Oct 31 | 70 |
| Oct 29 | 80 |
| Oct 27 | 80 |
| (Source: IPO Watch) | |
"DCX Systems got an outstanding response amid the string of IPOs on D-Street. The IPO was priced more reasonably compared to the couple of IPOs open for subscription," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com. (Learn about what grey market really is)
Three other companies have launched their IPOs this week: Fusion Micro Finance, Bikaji Foods International and Global Health (Medanta).
Doshi expects a premium of 25-30 percent on the listing day given the company's valuation and investor response provided the the broader market remains stable.
The DCX Systems IPO was available for bidding within a price range of Rs 197-207 in multiples of 72 for three trading days till November 2.
At the end of the third day of the bidding process, the IPO received bids for 104.7 crore shares against the 1.5 crore shares on offer, according to exchange data.
DCX Systems shares are likely be listed on bourses BSE and NSE on November 11.
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