Onyx Biotec Limited IPO GMP, Price, and Investment Details
As we move through 2024, investors eagerly watch the upcoming Onyx Biotec Limited SME IPO, set to open on November 13, 2024. In this article, we’ll cover all essential details about the IPO, from Grey Market Premium (GMP) and company insights to key investment aspects that could guide potential investors.
About Onyx Biotec Limited
Onyx Biotec Limited focuses on sterile pharmaceutical products, a market with increasing demand due to heightened healthcare safety standards. With IPO proceeds, the company aims to expand operations and enhance working capital, potentially positioning it as a growth driver in the industry.
If you’re new to IPOs or exploring this market, understanding the basics, including IPO GMP or Grey Market Premium, can provide key insights. GMP is often an indicator of market interest before listing and can signal potential listing gains or lower demand.
IPO Details and Key Dates
Below is a summary of Onyx Biotec Limited IPO details:
- IPO Open Date: November 13, 2024
- IPO Close Date: November 15, 2024
- IPO Price Band: ₹42 to ₹45 per share
- Lot Size: 3,000 shares per lot
- Minimum Investment: ₹126,000
- Listing Platform: BSE SME
- Allotment Date: November 20, 2024
- Refund Date: November 21, 2024
- Listing Date: November 25, 2024
This IPO is structured with fresh equity shares, providing Onyx Biotec the capital it needs to drive growth and expand capacity in a sector with significant potential.
The Importance of Grey Market Premium (GMP)
The Grey Market Premium (GMP) reflects early investor sentiment toward the IPO before its official listing. A positive GMP indicates heightened demand and potential for listing gains, while a lower or negative GMP could signal tepid interest. As of now, the GMP for Onyx Biotec Limited is approximately ₹5 to ₹7 per share, showing moderate investor confidence in the company.
Understanding GMP can be useful for investors assessing pre-listing demand. If you’re interested in a deeper dive into GMP and its implications, check out our article on IPO GMP.
Key Reasons to Consider Investing in Onyx Biotec Limited IPO
- Specialized Product Range: Onyx Biotec’s focus on sterile pharmaceutical products is strategically significant, as demand for sterile products continues to rise in healthcare.
- Expanding Industry Demand: The healthcare sector’s rapid growth post-pandemic provides strong tailwinds for companies producing essential healthcare components.
- IPO Proceeds Usage: Funds raised are allocated to operational expansion and working capital, aimed at increasing production capacity and market share.
If you’re curious about the nuances between IPO offerings and OFS (Offer for Sale) structures, refer to our detailed article on OFS vs. IPO for further insight.
Risks Associated with Onyx Biotec Limited IPO Investment
While there are compelling reasons to consider Onyx Biotec, there are also associated risks, especially for SME listings:
- Market Volatility: SME stocks generally have higher volatility, which could lead to significant price swings.
- Regulatory Risks: The pharmaceutical industry is highly regulated, and non-compliance could disrupt business operations.
- Liquidity Constraints: SME IPOs often experience lower trading volumes, which could affect the buying and selling experience.
For a comprehensive look into IPO investment strategies, including tips on IPO flipping, where investors sell shares on listing day for potential profits, read our guide on IPO flipping.
How to Apply for the Onyx Biotec Limited IPO
Investors can apply for the IPO through two main routes:
- UPI-Based Application:
- Log in to your Demat account (e.g., Zerodha, Upstox).
- Go to the IPO section, select Onyx Biotec, and input your UPI ID.
- Authorize the payment mandate in your UPI app to confirm.
- ASBA (Application Supported by Blocked Amount):
- Log into your bank’s online portal, navigate to ASBA, and enter IPO details.
- Authorize the amount to be blocked, which will be automatically released if the IPO is unsubscribed.
Conclusion: Should You Invest in Onyx Biotec Limited IPO?
The Onyx Biotec Limited IPO provides investors with an opportunity to gain exposure to a specialised healthcare sector. While the GMP and industry potential present promising indicators, investors should consider the risks inherent in SME listings. This IPO could be valuable to a diversified portfolio, especially for those open to exploring SME investments.
FAQs:
Q1: What are the IPO dates for Onyx Biotec Limited?
A: The IPO opens on November 13, 2024, and closes on November 15, 2024.
Q2: What is the current Grey Market Premium (GMP) for Onyx Biotec Limited IPO?
A: The GMP for Onyx Biotec Limited IPO is currently around ₹5 to ₹7 per share.
Q3: How can I apply for Onyx Biotec IPO?
A: You can apply through UPI or ASBA via your Demat account provider or bank portal.
Q4: What are the differences between an OFS and an IPO?
A: An IPO offers new shares to the public to raise funds, while an OFS allows promoters to sell existing shares. For more on this, check out our article on OFS vs. IPO.
Q5: What is IPO flipping, and is it applicable to Onyx Biotec Limited?
A: IPO flipping involves selling shares on the listing day to capture listing gains. For more on IPO flipping, visit our article here.
