Shares of Radiant Cash Management Services Ltd were trading at a premium of ₹6 per share in the grey market on Thursday, according to topsharebrokers.com.
The initial public offer (IPO) price per share is ₹99 at the higher end, while its estimated listing price as per the current grey market price is ₹105, 6.06 percent higher.
'Grey market premium' is the term used to describe investors' readiness to pay more than the issue price.
According to the brokerage, Thursday's grey market price trend indicates upside and signals a strong listing.
The allotment of shares for Radiant Cash Management Services Ltd's IPO is scheduled to take place on Friday, December 30.
The Radiant Cash Management Services IPO opened for subscription on Friday, December 23, and closed on Tuesday, December 27.
On the final day of subscription, qualified institutional buyers (QIB) oversubscribed the public offering while slightly more than half of the non-institutional investors' portion was subscribed. However, retail investors did not show much interest.
The company has fixed the price band at ₹94 to 99 per equity share for the initial public offer.
Investors could bid for a minimum of 150 equity shares and in multiples thereafter.
The public offering, which has a face value of 1 rupee per equity share, consists of a fresh issue of shares worth ₹60 crore and an offer for sale (OFS) by existing shareholders of up to 3.31 crore equity shares.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited, and Yes Securities (India) Limited are the book running lead managers.
The equity shares are proposed to be listed on BSE and NSE on January 4, 2023.