The Excelsoft Technologies IPO, which initially generated strong investor interest, witnessed a noticeable dip on the final day of subscription, reflecting shifting market sentiment. According to market observers, the grey market premium (GMP) has dropped by nearly 65%, signalling cautious behaviour among investors amid broader market volatility.
This decline comes at a time when several new-age tech IPOs have faced fluctuating investor appetite due to valuation concerns, liquidity tightening, and sector-specific uncertainties.
GMP Drops 65%: What Does It Indicate?
The grey market premium is an unofficial indicator of investor interest before listing. While not always accurate, it often mirrors:
Market sentiment
Subscription strength
Expected listing performance
A 65% fall in GMP suggests that traders expect a more modest listing, or even a discounted debut if broader market conditions remain weak.
Why Did the Excelsoft IPO Lose Momentum?
Several factors may have contributed:
1. Broader Market Weakness
The stock market has been witnessing selling pressure, especially in tech-oriented counters.
2. High Valuation Concerns
A segment of investors believes the IPO valuation may leave limited listing gains.
3. Mixed Subscription Trend
Retail interest remained steady, but institutional participation reportedly softened compared to early expectations.
4. Increased Supply of IPOs
Multiple IPOs opening in the same window can dilute interest in individual issues.
Investor Sentiment: Cautious Yet Curious
Despite the fall in GMP, long-term investors continue tracking the company because:
Excelsoft has a strong presence in ed-tech and digital learning solutions
Demand for digital education platforms remains steady
The company’s business model has expansion potential
However, short-term listing gain–focused investors may be re-evaluating their positions.
What Should Investors Expect Next?
The final subscription numbers and market mood ahead of listing will determine how the stock performs on debut.
Possible scenarios:
Moderate listing if market stabilises
Flat or discounted listing if volatility continues
Upside later if long-term fundamentals strengthen post-listing
Investors are advised to wait for final subscription data and company-specific updates before making decisions.
❓ FAQs
1. Why did the Excelsoft Technologies IPO fall on the final day?
The IPO saw decreased momentum due to weak market conditions and reduced investor enthusiasm, especially from institutional categories.
2. By how much did the grey market premium fall?
The GMP reportedly declined by around 65%.
3. Does a falling GMP mean the stock will list at a discount?
Not always, but a sharp drop in GMP often indicates lower listing expectations.
4. Is the Excelsoft Technologies IPO still good for long-term investors?
Long-term investors may still consider the company’s fundamentals, though short-term listing gains may be limited.
5. Why do IPOs show volatility close to listing?
Market conditions, peer IPOs, subscription trends, and valuation perceptions influence last-minute sentiment.
6. What should investors do now?
Monitor final subscription data and stay updated on market conditions before deciding on listing-day actions.
Published on : 21st November
Published by : SMITA
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