JOIN US With quite a number of large-sizeinitial public offerings (IPOs) set to open for subscription during the next fortnight, the unofficial market -- popularly known as grey market -- for these issues will become active.
Market pundits tracking this ‘informal’ market aver that the volumes this time may not be as big as those witnessed during the bull-run of 2007-08, nevertheless they are a considerable improvement from the levels seen last year.
Shares of CARE are quoting at a premium of Rs 170 per share as against the official price band of Rs 700-750, while PC Jewellers (price band: Rs 125-135) are quoting at a premium of Rs 24, said a grey market operator responding to a query.
In recent times, only the Coal India IPO made some good business in the grey market, whose share price remained above the issue price level even during the financial crisis.
Even now, grey market trades are conducted purely on faith, with the verbal transactions entered into the system once shares are credited in the demat system.