Grey market premium or GMP is the premium amount at which grey market IPO shares are traded before they get listed in the stock exchange. Basically, the shares of the company that is coming up with its IPO are bought and sold in the unregulated market. The GPM reflects at what price the IPO might list on a listing day.
The GMP starts once the IPO and its Price band are announced. The deals are usually done by the trusted group of investors and the broker. The GMP varies depending on the market conditions, demand, and the number of times the upcoming IPO is subscribed.
LIVE IPO Grey Market Premium/GMP Rates
|IPO LIST||GREY MARKET PREMIUM (GMP)||CUTOFF -PRICE||%GAIN||STATUS|
Kostak Rate is the price at which the IPO application can be sold for a fixed price regardless of getting an IPO allotment or not.
How is the GMP calculated?
Consider a company that comes up with its IPO with a price band of RS.390-400. And as per its demand, subscription n market conditions, the GMP is running at Rs.400. So now we can say that most probably the IPO will list at cut-off price + GMP 0or 400 + 400 = Rs. 800. In other words, we can say the IPOs listing gain was at 100% against its IPO price.
- Trading in Grey Market is Illegal and is never recommended.
- There are high chances of an IPO listing differently against the GMP since it keeps on changing.
- Use the GMP for information and not numbers.
- Read our analysis for each and every upcoming IPOs with much vital information about the Company’s fundamental, future projects and every detail regarding the IPO.