IPO Grey Market Premium & Rates, Upcoming IPO GMP Detailed Guide
Hello Viewers,
You guys are already well-versed in What is IPO? If you have been investing in IPO for quite some time. You might have heard quite often that the Upcoming IPO is quoting at a grey market premium or a grey market discount.
Our today’s post is centered around the IPO grey market.
“LATEST IPO GREY MARKET PRICE (GMP) & UPCOMING PREMIUM & KOSTAK RATES”
You must be wondering what is the grey market for IPO? or what the grey market means. All your desired queries will be sorted through this post.
The grey market of IPO is also referred to as IPO grey market. Stay tuned with us till the end to learn about Grey market IPO & Grey market premium of IPO.
So without any further adieu let’s get started!
What is the Grey Market?
Grey Market is an unregulated market that trades IPO applications and IPO shares before the stock is listed. An investor may not want to trade in the grey market, but getting an idea of the GMP can be used to estimate the listing gain on the IPO share. GMP or Grey Market Premium adding to the issue price gives the estimated listing price of the IPO share.
Here we are reporting the GMP of all upcoming and current SME and Mainboard IPOs along with Subject 2 Sauda price. Estimated Listing Price is also calculated by adding up GMP and IPO cap prices.
**The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey markets or are subject to rates (sub2), nor do we recommend trading in grey markets.
IPO GMP Price Today Live
You can see the estimated IPO grey market Premium information of all the IPOs and new IPOs given below in detail.
*The IPO GMP Prices shown here are just news Related to the grey market. We do not trade/deal in the grey market nor do we Recommend trading in the grey market *
(As On 2024)
Here are the latest IPO grey market premium rates.
| IPO Company | IPO Date | Price Band | Lot Size | GMP | Listing Gain |
|---|---|---|---|---|---|
| HYUNDAI IPO | 15 – 17 Oct | ₹1865-1960 | 7 | ₹75 | 4% |
| Garuda Construction and Engg | 08 – 10 Oct | ₹92 – ₹95 | 157 | ₹0 | 0% |
| SWIGGY IPO | OCT – NOV | ₹ | – | ₹ | % |
| NTPC GREEN IPO | OCT – NOV | ₹ | – | ₹ | % |
| AFCONS INFRASTRUCTURE IPO | OCT – NOV | ₹ | – | ₹ | % |
Disclaimer
- The estimated IPO grey market premium mentioned is valid for the specific date only.
- We do not buy or sell any IPO form in the IPO grey market.
- The IPO listing price may differ from the estimated IPO GMP price due to changing stock market conditions.
- The IPO GMP price is for educational purposes only. Check the IPO grey market premium before investing in an IPO as the price may go up or down before listing. Subscribe to IPOs only after considering the business and fundamentals of the companies.
- Do not invest your money in any IPO by looking at its grey market premium, it is very risky.
Here are some FAQs on the IPO grey market.
So let’s take a read
What is IPO GMP ?
IPO GMP (IPO Grey Market Premium) measures the price difference between the issue price of an IPO and its trading price in the grey market. Before the launch of a new IPO, trading takes place in an informal manner. When the date of the new IPO is announced by the stock exchange and the company, during that period the IPO shares are traded informally in the grey market. The grey market is a market which is controlled by some people, here the buying and selling of shares of the new IPO takes place without the involvement of the stock exchange and SEBI.
IPO Grey Market Premium (IPO GMP) In the grey market, shares are traded according to the lot size of the new Initial Public Offering, the price of which is the difference between the issue price fixed by the company. The grey market is An Informal Market where Shares Are Bought & Sold in IPOs Before They are Listed on The Stock Exchange. Especially GMP is used to know the opinion of investors towards the IPO. A high GMP of any IPO indicates how excited investors are about the company and it is estimated that what will be the price of that IPO before it is listed on the stock exchange. A low GMP price indicates that most investors are not showing interest in the IPO of this company and it is expected that when this IPO is listed on the stock exchange, a decline in the share price can be seen.
It is important to always keep in mind that GMP Price is not a prediction of what the price of the stock will be when the IPO is listed on the stock exchange. There are many factors in the stock market that can significantly affect the price of the stock at the time of listing, such as the demand from institutional investors QIB and NII and the mood of the stock market. GMP Price works only on the basis of investor sentiment. IPO Grey Market Premium (GMP). The purpose of this article is to provide you with a comprehensive understanding of IPO GMP, and its relationship with the IPO grey market.
IPO GMP indicates the stock market position towards the IPO. If the IPO GMP is good, it means that the IPO is being traded at a price higher than the corporate price, it shows strong demand for the listing of that IPO. If the GMP value of that IPO starts decreasing, it means that the share price may be listed below its fixed price. Now let us see how the GMP listing price of an IPO is calculated after adding premium to it. If the grey market price of that IPO is ₹200 and the price of that IPO is around ₹200, then the GMP listing price will be ₹400. Under the GMP PRICE calculation, you will get a premium of 50% on the IPO price. The IPOs offered in the grey market can be seen above the index price apart from the GMP. Because we have often seen that Grey Market is always strong signal to make profit in IPO listing but we advise all our wishers to use Grey Marketplace just for information and not to make IPO investment based on GMP price.
Important points of IPO GMP PRICE :
- Transactions in the grey market are informal, it involves buying and selling on the basis of trust between IPO investors and stockbrokers.
- Before applying for any IPO, gather complete information about that IPO.
- Grey market rates are calculated from research in the stock market and market experts.
- We never advise you to trade in the grey market as it is an illegal and informal method.
- The cost rate in an IPO is the premium that a person gets on his IPO application (in the outside market) by selling his IPO allotment or issue to someone else before listing.
- Do not buy IPO at that premium as per the table given above. This price can change anytime before the listing of the IPO.
- Before applying for any IPO, understand the fundamentals and business model of that company well and only then apply for the IPO.
What is the grey market premium?
The IPO grey market premium (IPO GMP) refers to the additional price at which the stocks of that IPO are bought and sold informally before their listing on the stock exchange. It shows the demand for that IPO in the stock market regarding the possible price and demand of the market for the shares of that IPO.
“Grey Market Premium” or “IPO GMP” is a term that the public uses to estimate the stock market demand of that IPO so that what will be the estimated listing price of that IPO. Everyone knows very well that this is an informal method, but still investors definitely look at the grey market price of the IPO to earn more money in the stock. This method is used before the IPO listing and during the days from the start date of the IPO to the allotment date. The IPO grey market premium shows where the IPO will be listed on the day of listing from the estimated price?
Let us try to understand how IPO GMP is calculated with the help of an example. If a company brings its IPO price of ₹110 and the grey market premium is around ₹25, then we can assume that the listing of that IPO can be listed at ₹135. But in some cases we have also seen that the IPO is not listed according to IPO GMP. In most cases the IPO GMP price works but in some cases we do not see this. If the demand for an IPO is good in the stock market and big investors like HNI and QIB are investing in that IPO, then that IPO gets more subscription and that IPO gets listed on the stock exchange around the price of the estimated IPO GMP.
What is Kostak Rate?
Kostak rate is the rate at which an investor pays his IPO application to a seller before the IPO listing. Kostak rate also works according to the response in the grey market. A person can sell and buy his IPO application in the out side market according to Kostak rate and book his profit. Kostak rate will be applicable whether the investor gets allotment in the IPO or not. The buyer has to pay the Kostak rate for the IPO from his pocket.
If a person applied for 5 lots in an IPO and sold it at ₹1100 per application, it means that he got IPO profit of ₹5500. Even if he gets allotment in 2 IPOs, his profit will be ₹5500. Now if he sells the stock and gets a profit of about ₹ 11000 then he has to give the remaining profit of ₹ 5500 to the investor who bought his application. In this way, you can sell your application in the IPO grey market in a safe manner.
What is subject to Sauda?
According to the Kostak rate, the deal of that application is done and it is decided that the investor will get his IPO application. If someone buys or sells an IPO application on the subject of that deal, then it means that if he gets an allotment in that IPO, he can get the said amount otherwise the deal will be cancelled. In this, no one can decide his profit in advance because it depends on the IPO allotment. Then let us assume that if someone gets IPO allotment and that person sold the application for around ₹ 11000 and on the day of listing the profit increases to around ₹ 16000, then he will have to pay ₹ 6000 to the person who bought the application.
How to calculate grey market premiums?
IPO GMP or grey market premium is the price at which an IPO is bought and sold in the grey market before its IPO listing. GMP PRICE is calculated based on the performance of the company, its demand in the grey market and the subscription of the IPO. Suppose if the IPO price of a company is fixed at ₹250 and the grey market is getting ₹110, then it means that the IPO may get listed at ₹360 (ie: ₹250+₹110). This is an estimate but the actual listing price of the IPO may be different from the grey market price.
Are grey market stocks safe?
It depends on who you are trading with, our suggestion to you is that the grey market is not safe. If you are still trading in the grey market then it can prove to be very risky for you and you can also lose your money. We suggest you to look at the IPO GMP PRICE only to get listing gains.
How to sell IPO applications in the grey market ?
There are no official people or businesses associated with the grey market yet. Some stock brokers buy and sell IPO applications at their own risk at Kostak rates and Subject to Deal rates as per IPO GMP. You should find a local broker in your city who acts as a middleman between buyers and sellers and does grey market trading of any IPO applications.
How to check GMP of IPO
There is no exact way to check GMP of IPO but there are some websites with the help of which you can easily check GMP of any IPO – Most trusted website is IPOLive.in You can check GMP of any IPO from this website.
