Tempsens grey premium sales surge, exceeding 100% growth this quarter
The stock is currently commanding a GMP of ₹301 in the unofficial market, implying a premium of 102% over its IPO price of ₹300 a share. Tempsens Instruments, which is raising around ₹650 crore through its IPO, was subscribed nearly 22 times on Friday, the second day of the issue. The IPO closes on August 24.
GMP is the additional amount over the IPO price that investors are willing to pay for shares before their listing on the stock exchange. Before the stock debuts on the exchange, it is traded informally in the grey market based on mutual trust between traders. The GMP is the difference between the price at which the stock trades in the grey market and its IPO issue price.
The last IPO to record a GMP of more than 100% was Mamata Machinery in December 2024. Before that, KRN Heat Exchanger and Refrigeration and Bajaj Housing Finance had seen GMPs of around 100% in September 2024.
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Tempsens’ non-institutional investor (NII) portion was subscribed around 53 times, while the qualified institutional buyer (QIB) portion saw 3.31 times subscription. The retail portion was subscribed nearly 19 times.
The grey market premium indicates market sentiment towards an IPO based on demand-supply dynamics. Robust demand for an IPO tends to result in a higher GMP, indicating potential upside on listing.
GMPs for several other upcoming and recently launched IPOs have also strengthened. Lumino Industries, which is set to open for subscription next week, is commanding a GMP of around 62% over its issue price. Augmont Enterprises and Hy-Tech Engineers are both trading at premiums of around 50%.
