Annu Projects Ltd. made a weak debut on the stock exchanges, with its shares listing at a discount of up to 29 percent to the issue price of ₹99 per share.

The muted listing came as little surprise to market observers, as the grey market had signalled caution ahead of the debut. The IPO had been trading at a discounted grey market premium (GMP) of ₹7 against its issue price of ₹99, indicating limited investor enthusiasm compared with the final issue price.

The grey market premium is an unofficial, over-the-counter indicator that reflects the price at which shares of a forthcoming IPO trade before their official listing. A positive GMP generally suggests expectations of a strong listing, while a discounted or negative GMP points toward expectations of a weak debut. While widely tracked by IPO investors, GMP is not an official or regulated metric and does not always accurately predict listing-day performance.

A listing at a discount means the shares began trading on the exchange below the price at which they were sold to investors during the IPO subscription process, leaving allottees who sold at listing levels with a loss on their investment.

Discounted listings are a recurring feature of India's small-ticket IPO market, particularly among SME-segment offerings, where modest issue sizes, limited float, and lower liquidity can amplify volatility in early trade. For investors, key markers to watch after a weak debut include post-listing trading volumes, the stock's ability to stabilise around issue-price levels, and broader sentiment toward new public offerings in the SME segment.

Read more: Annu Projects IPO makes muted debut as shares list at up to 29% discount