After Paytm, investors chase Lava International stocks in grey market

NEW DELHI: As Lava International prepares for an initial public offering (IPO), investors have started chasing its stock in the grey market. The stock has risen 10-20%. In the second half of May, it was trading at Rs325. Depending on the broker, an investor can get it between Rs350 and Rs400 apiece.

Two weeks back, Paytm saw a similar investor interest. Its stock rose over 70% in the grey market. However, Paytm stocks were in short supply. In the case of Lava International, there is enough supply available, according to brokers.

“The company has sent a letter to existing shareholders informing about the IPO. We expect Lava to file DRHP (Draft Red Herring Prospectus) by June-end or early July,” said Dinesh Gupta, co-founder, UnlistedZone, a firm that trades in stocks of unlisted companies.