Veerkrupa Jewellers IPO: In a first, company advertising its GMP; Anil Singhvi calls this unusual, cautions investors

Zee Business Exclusive: In an unusual development and probably the first instance, a company known as Veerkrupa Jewellers is openly claiming a Grey Market Premium (GMP) in an advertisement. The company is from the BSE SME platform and today is the last day of the Initial Public Offer (IPO).

The company has been advertising and highlighting its GMP in the advertisement. Anil Singhvi said that it is wrong, and it was up to the regulators to take a call on this.

Zee Business Exclusive: In an unusual development and probably the first instance, a company known as Veerkrupa Jewellers is openly claiming a Grey Market Premium (GMP) in an advertisement. The company is from the BSE SME platform and today is the last day of the Initial Public Offer (IPO).

Zee Business Senior Research Analyst Ashish Chaturvedi's report. The company is planning to raise Rs 16 crore from the issue out of which Rs 8 crore will be from the Offer For Sale (OFS). The company has been advertising about it in a big way, Chaturvedi said.

The interesting thing is that the company has been advertising and highlighting its GMP in the advertisement. Chaturvedi informed that the price band is of Rs 27 and the company is claiming that the GMP is at Rs 7. Till now, the issue has been subscribed almost 1.38 times, he added.

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That means, in the advertisement, the company claims that investors will get a premium of Rs 7 on a share of Rs 27.

Talking about this, Anil Singhvi, Managing Director, Zee Business said it has been seen for the first time that a company is advertising the GMP of its shares. He said that it is wrong, and it was up to the regulators to take a call on this.

He said that Zee Business is only highlighting the issue as the channel is the medium of disseminating news.

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विज्ञापन में GMP का खुलकर दावा कर रही वीरकृपा ज्वेलर्स

विज्ञापन में फायदा दिखाने के दावे से कितना फायदा मिला

IPO के विज्ञापन में GMP कितना सही⁉️

देखिए इस वीडियो में... @NSEIndia @BSEIndia @SEBI_India @FinMinIndia
@nsitharamanoffc @AnilSinghvi_ @AshishZBiz pic.twitter.com/n5HKDBrndo

— Zee Business (@ZeeBusiness) July 5, 2022

His advise to investors is to look at the fundamentals, financial data of the company, and the track record of the promoters. He said that investment must be made based on these basic things.

Expert Advice
Expert Avneesh said that the GMP changes daily and is basically unregulated. He also said that this advertisement is only to attract investors. Perhaps Veerkripa Jewelers does not want to divulge the business and financial position of the company to the investors. He advised investors to beware of such promoters and companies.

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