Shares of Avalon Technologies Ltd were trading at a premium of ₹10 per share on the grey market on Wednesday, according to topsharebrokers.com.
The initial public offer (IPO) price per share is ₹436 while its estimated listing price as of current grey market premium is ₹446, 2.29% higher.
The 'Grey Market Premium' (GMP) refers to investors' readiness to pay more than the issue price.
According to the brokerage, Wednesday's grey market price trend indicates lower side and this trend is expected to further slip on the day of listing. The lowest GMP is recorded at ₹0 while the highest has been ₹26.
The company has fixed the price band at ₹415 to 436 per equity share for the proposed initial public offer.
The allotment of shares of the company is scheduled to take place on Wednesday, April 12.
The public issue that opened for subscription on Monday, April 3, closed on Thursday, April 6.
Read More: Grey market: What is it? Should you trade in grey market and other questions answered
On Day 3 of the subscription, the issue saw some positive response from qualified institutional buyers (QIBs) who subscribed to the issue 3.57 times. Retail investors subscribed to 84% of the portion reserved and non-institutional bidders subscribed to 41% of the portion set aside. The issue was subscribed 2.21 times on the final day.
On Day 2, the IPO was subscribed by 9% and on Day 1 the IPO saw muted response and only 3% of the issue was subscribed.
Through its anchor book, the company was able to raise ₹389.25 crore, and a total of 24 investors took part.
The company's ₹865 crore IPO is made up of ₹320 crore from a fresh share issuance and ₹545 crore from offer for sale (OFS) by promoters and existing shareholders.
JM Financial Ltd, DAM Capital Advisors Ltd, IIFL Securities Ltd, Nomura Financial Advisory and Securities (India) Private Ltd are the lead managers of the issue, and Link Intime India Private Ltd is the registrar.
