This is the IPO GMP, also known as the IPO Grey Market Premium. It is the difference between the IPO’s issue price and its price on the grey market. When an IPO first comes out, there is a time when the shares can be traded without being officially listed on a stock exchange. This is called the “gray market.”
IPO GMP, Recent IPO Grey Market Premium & Kostak Rates
The demand for a business that plans to go public (IPO) is used to figure out the grey market premium, also known as the IPO GMP. The gray market begins informally in the unregulated market after the IPO date and price band are made public. Before investing in an IPO, people always look at the Upcoming IPO GMP, but this can change depending on the market, demand, and amount of orders.
IPO GMP is in trend for TAC Infosec, GConnect Logitech, Yash Optics &, Jay Kailash Namkeen, Aluwind Architectural, K2 Infragen, Creative Graphics Solutions, Bharti Hexacom, Trust Fintech, Vishwas Agri Seeds, Naman In-Store (India), SRM Contractors, Blue Pebble, Aspire & Innovative, Radiowalla IPOs.
Latest IPO GMP Today
Check out the most recent IPO analysis to get an idea of the IPO grey market rates for the upcoming IPO with listing gain.
Grey Market is an unregulated market to trade IPO applications and IPO shares before listing of the stock. 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 issue price gives the estimated listing price of the IPO share.
**Note: The GMP prices shown here are only news about the black market. We don’t deal in the gray market or subject to rates (sub2), and we don’t suggest that you do either.
| IPO Name | Date | Type | IPO GMP | IPO Price | Gain | Kostak | Subject |
| Indegene | 6-8 May | Mainline | ₹240 | ₹452 | 53% | ₹- | ₹- |
| Aadhar Housing Finance | 8-10 May | Mainline | ₹65 | ₹315 | 21% | ₹– | ₹– |
| TBO TEK | 8-10 May | Mainline | ₹405 | ₹920 | 44% | ₹- | ₹- |
| Amkay Products | 30-3 May | BSE SME | ₹55 | ₹55 | 100% | ₹- | ₹80,000 |
| Racks & Rollers | 30-3 May | BSE SME | ₹35 | ₹78 | 44% | ₹- | ₹40,000 |
| Sai Swami Metals | 30-3 May | BSE SME | ₹50 | ₹60 | 83% | ₹- | ₹70,000 |
| Slone Infosystems | 3-7 May | NSE SME | ₹50 | ₹79 | 63% | ₹- | ₹60,000 |
| Refractory Shapes | 6-9 May | NSE SME | ₹5 | ₹31 | 16% | ₹– | ₹10,000 |
| Winsol Engineers | 6-9 May | NSE SME | ₹125 | ₹75 | 167% | ₹– | ₹150,000 |
| Finelistings Technologies | 7-9 May | BSE SME | ₹20 | ₹123 | 16% | ₹– | ₹10,000 |
| Silkflex Polymers | 7-10 May | NSE SME | ₹– | ₹52 | -% | ₹– | ₹– |
| TGIF Agribusiness | 8-10 May | BSE SME | ₹– | ₹93 | -% | ₹– | ₹– |
| Energy Mission | 9-13 May | NSE SME | ₹– | ₹138 | -% | ₹– | ₹– |
Disclaimer
- The guesstimate for the IPO Grey Market Premium is good for that date.
- On the IPO Grey Market, we don’t buy and sell IPO forms.
- The IPO start may be different from the estimated IPO GMP price because of changes in the stock market.
- We suggest that the IPO GMP rates are only used for learning. If you want to register for an IPO, don’t just look at the premium price; it could change before the listing. Sign up for an IPO by only looking at the basics of the companies.
What is IPO GMP?
There is a difference between the IPO’s issue price and its selling price in the grey market. This known as the IPO GMP. When an IPO first comes out, there is a time when the shares can be traded without being officially listed on a stock exchange. This is called the “gray market.” The grey market is an over-the-counter market where people can buy and sell stocks without the stock companies getting active.
It is the difference between how much shares of an Initial Public Offering (IPO) are bought and sold on the black market and the price the company sets for the shares. You can buy and sell shares on the grey market before they are listed on a stock exchange. It is not a legal market. GMP can be used to figure out how investors feel about an IPO. If the GMP is high, it means that buyers think the company will do well and that the share price will go up when it goes public. A low GMP means that investors don’t think the company will do well and think the share price will go down when it goes public.
Explanation of Grey Market and GMP in simple terms:
- The Grey Market is an illegal market for the Pre-IPO.
- The price per share is GMP.
- When it comes to apps, Kostak is the best.
- The premium for the given entry is Sub2 or Sub2Sauda.
- There are no official rules and laws for GMP because it is not an official system.
- At GMP, all business is done in cash.
- It’s not possible to write to Grey Market. It’s written on small pieces of paper.
- There is no real dealer. People only buy and sell through trust and word of mouth.
- The higher the GMP, the more likely it is that the IPO will be offered at a huge price.
- The Fire Rating of an IPO shows how famous the IPO is in terms of how much money can be made from it.
- GMP work can begin before the price band is made public.
The IPO GMP is a measure of market views regarding the IPO. If the GMP is positive, it signifies that the shares are trading at a higher price than the issue price, showing great demand for the IPO. A negative GMP, on the other hand, indicates that the shares are trading below the issue price, saying that demand is poor.
Let’s look at how to determine the expected listing price after including an extra fee. If the grey market pricing for an IPO is ₹100 and the price is about ₹200, the expected listing price is ₹300. Based on the calculations, the listing gain will be 50% of the IPO price.
The listing of an IPO may differ from the expected listing price recommended by the grey market due to the bull/bear market or demand for the company’s shares. We have seen that certain IPOs had smaller grey markets but launched with bigger returns, whilst a few IPOs in 2021 had a higher grey market but a lower listing. As the grey market is usually a key element in calculating IPO listing gains, we recommend investors to utilize grey market rates as information only and not to trade solely on them.
Important Points to Understand for IPO GMP:
- The grey market transactions are unofficial, with IPO investors and stockbrokers. It is based on trust between the two parties.
- Before submitting an IPO application, please read our analysis.
- Grey market rates are calculated and provided or sourced by market researchers or specialists.
- We do not suggest trading in the grey market because it is not legal.
- The Kostak Rate is the premium received for selling an IPO application (in an off-market transaction) to someone else before the issue is allotted or listed.
- Do not subscribe to the IPO at the above-mentioned premium. It may change before being listed.
- Subscribe only after considering the company’s fundamentals.
What is Grey Market Premium?
The IPO Grey Market Premium, or IPO GMP, is the extra price that IPO shares are bought and sold before they are officially listed on a stock market. It shows how the market thinks the shares might be worth and how much people want to buy them.
In the IPO market, the “grey market premium” (also called “IPO GMP”) is a term used to find out what price people think the IPO will list at. Investors look at the “gray market” price of an IPO to figure out how much money they can make on the stock. It works before the IPO and in the days between the start date of the IPO and the date of this task. The gray market premium shows how people might respond to the IPO on the day it goes public with an estimated price.
Let’s see how the IPO GMP estimate goes. If the company files for an IPO at ₹100 and the dark market premium is around ₹20, then the IPO is likely to list at around ₹120 on the day it goes public. But the truth is that there is no trust. IPO GMP works most of the time, but not all the time. We’ve seen that if people want to buy the IPO and the expected number of HNI and QIB subscriptions is high, the IPO will list around the price given, with an estimated IPO GMP.
What Factors are Influencing IPO GMP?
The IPO Grey Market Premium is caused by a number of things, such as
- Company Fundamentals: Strong financials, growth prospects, and a reputable management team can positively impact the GMP.
- Market Conditions: Overall market sentiment, sector performance, and economic factors influence investor appetite for IPOs.
- Demand and Supply Dynamics: The number of shares available and the level of investor interest play a crucial role in determining the GMP.
Live IPO GMP
| IPO | Price | GMP(₹) | Est Listing | Fire Rating | IPO Size | Lot | Open | Close | BoA Dt | Listing | GMP Updated |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Teerth Gopicon NSE SME Upcoming | 111 | 12 | 123 (10.81%) |  | ₹44.40 Cr | 1200 | 8-Apr | 11-Apr | 12-Apr | 16-Apr | 4-Apr 6:03 |
| DCG Wires And NSE SME Upcoming | 100 | — | — |  | ₹49.99 Cr | 1200 | 8-Apr | 10-Apr | 12-Apr | 16-Apr | 4-Apr 6:03 |
| Bharti Hexacom IPO Open (Sub:0.35x) | 570 | 64 | 634 (11.23%) | | ₹4275.00 Cr | 26 | 3-Apr | 5-Apr | 8-Apr | 12-Apr | 4-Apr 6:03 |
| Creative Graphics Solutions NSE SME Closing Today (Sub:18.91x) | 85 | 40 | 125 (47.06%) |  | ₹54.40 Cr | 1600 | 28-Mar | 4-Apr | 5-Apr | 9-Apr | 4-Apr 6:03 |
| Aluwind Architectural NSE SME Closing Today (Sub:1.87x) | 45 | 6 | 51 (13.33%) | | ₹29.70 Cr | 3000 | 28-Mar | 4-Apr | 5-Apr | 9-Apr | 4-Apr 6:03 |
| Yash Optics & NSE SME Close (Sub:42.17x) | 81 | 18 | 99 (22.22%) | | ₹53.15 Cr | 1600 | 27-Mar | 3-Apr | 4-Apr | 8-Apr | 4-Apr 6:03 |
| Jay Kailash Namkeen BSE SMEClose (Sub:40.02x) | 73 | 15 | 88 (20.55%) | | ₹11.93 Cr | 1600 | 28-Mar | 3-Apr | 4-Apr | 8-Apr | 4-Apr 6:03 |
| K2 Infragen NSE SMEClose (Sub:51.47x) | 119 | 35 | 154 (29.41%) | | ₹40.54 Cr | 1200 | 28-Mar | 3-Apr | 4-Apr | 8-Apr | 4-Apr 6:03 |
| TAC Infosec NSE SMEClose (Sub:422.03x) | 106 | 110 | 216 (103.77%) |  | ₹29.99 Cr | 1200 | 27-Mar | 2-Apr | 3-Apr | 5-Apr | 4-Apr 6:03 |
| Radiowalla NSE SMEClose (Sub:307.54x) | 76 | 38 | 114 (50.00%) | | ₹14.25 Cr | 1600 | 27-Mar | 2-Apr | 3-Apr | 5-Apr | 4-Apr 6:03 |
| Trust Fintech NSE SMEListing Today | 101 | 45 | 146 (44.55%) | | ₹63.45 Cr | 1200 | 26-Mar | 28-Mar | 2-Apr | 4-Apr | 4-Apr 6:03 |
| SRM Contractors IPOL@215.25 (2.50%) | 210 | 70 | 280 (33.33%) | | ₹130.20 Cr | 70 | 26-Mar | 28-Mar | 1-Apr | 3-Apr | 3-Apr 9:30 |
| Vruddhi Engineering Works BSE SMEL@71 (1.43%) | 70 | — | 70 (0.00%) | | ₹4.76 Cr | 2000 | 26-Mar | 28-Mar | 1-Apr | 3-Apr | 3-Apr 9:23 |
| Blue Pebble NSE SMEL@199.00 (18.45%) | 168 | 15 | 183 (8.93%) |  | ₹18.14 Cr | 800 | 26-Mar | 28-Mar | 1-Apr | 3-Apr | 3-Apr 9:25 |
| Aspire & Innovative NSE SMEL@56.50 (4.63%) | 54 | 4 | 58 (7.41%) | | ₹21.97 Cr | 2000 | 26-Mar | 28-Mar | 1-Apr | 3-Apr | 3-Apr 9:32 |
| GConnect Logitech BSE SMEL@42.00 (5.00%) | 40 | 9 | 49 (22.50%) | | ₹5.60 Cr | 3000 | 26-Mar | 28-Mar | 1-Apr | 3-Apr | 3-Apr 9:26 |
| Naman In-Store (India) NSE SMEL@125.00 (40.45%) | 89 | 50 | 139 (56.18%) | | ₹25.35 Cr | 1600 | 22-Mar | 27-Mar | 28-Mar | 2-Apr | 2-Apr 9:31 |
| Vishwas Agri Seeds NSE SMEL@85.00 (-1.16%) | 86 | 9 | 95 (10.47%) | | ₹25.80 Cr | 1600 | 21-Mar | 26-Mar | 27-Mar | 1-Apr | 1-Apr 9:29 |
| Omfurn India SME FPOL@76.60 (2.13%) | 75 | — | 75 (0.00%) | | ₹27.00 Cr | 2400 | 20-Mar | 22-Mar | 26-Mar | 28-Mar | 30-Mar 7:56 |
| Chatha Foods BSE SMEL@73.00 (30.36%) | 56 | 10 | 66 (17.86%) | | ₹34.00 Cr | 2000 | 19-Mar | 21-Mar | 26-Mar | 27-Mar | 27-Mar 9:23 |
| Enser Communications NSE SMEL@72.00 (2.86%) | 70 | — | 70 (0.00%) | | ₹16.17 Cr | 2000 | 15-Mar | 19-Mar | 20-Mar | 22-Mar | 22-Mar 9:29 |
| Enfuse Solutions NSE SMEL@115.00 (19.79%) | 96 | 40 | 136 (41.67%) | | ₹22.44 Cr | 1200 | 15-Mar | 19-Mar | 20-Mar | 22-Mar | 22-Mar 9:30 |
| KP Green Engineering BSE SMEL@200.00 (38.89%) | 144 | 50 | 194 (34.72%) | | ₹189.50 Cr | 1000 | 15-Mar | 19-Mar | 20-Mar | 22-Mar | 22-Mar 9:33 |
| Krystal Integrated Services IPOL@785.00 (9.79%) | 715 | 60 | 775 (8.39%) | | ₹300.13 Cr | 20 | 14-Mar | 18-Mar | 19-Mar | 21-Mar | 21-Mar 9:30 |
| AVP Infracon NSE SMEL@79.00 (5.33%) | 75 | — | 75 (0.00%) | | ₹52.34 Cr | 1600 | 13-Mar | 15-Mar | 18-Mar | 20-Mar | 20-Mar 9:24 |
| Signoria Creation NSE SMEL@131.00 (101.54%) | 65 | 60 | 125 (92.31%) | | ₹9.28 Cr | 2000 | 12-Mar | 14-Mar | 15-Mar | 19-Mar | 19-Mar 9:33 |
| Royal Sense BSE SMEL@129.20 (90.00%) | 68 | 37 | 105 (54.41%) | | ₹9.86 Cr | 2000 | 12-Mar | 14-Mar | 15-Mar | 19-Mar | 19-Mar 9:24 |
| Popular Vehicles & IPOL@289.20 (-1.97%) | 295 | — | 295 (0.00%) | | ₹601.55 Cr | 50 | 12-Mar | 14-Mar | 15-Mar | 19-Mar | 19-Mar 9:32 |
| Pratham EPC Projects NSE SMEL@113.30 (51.07%) | 75 | 27 | 102 (36.00%) | | ₹36.00 Cr | 1600 | 11-Mar | 13-Mar | 14-Mar | 18-Mar | 18-Mar 9:29 |
| Pune E-Stock Broking BSE SMEL@130 (56.63%) | 83 | 40 | 123 (48.19%) | | ₹38.23 Cr | 1600 | 7-Mar | 12-Mar | 13-Mar | 15-Mar | 15-Mar 9:24 |
| Gopal Snacks IPOL@351.00 (-12.47%) | 401 | -25 | 376 (-6.23%) | | ₹650.00 Cr | 37 | 6-Mar | 11-Mar | 12-Mar | 14-Mar | 14-Mar 9:32 |
| Shree Karni Fabcom NSE SMEL@260.00 (14.54%) | 227 | 30 | 257 (13.22%) | | ₹42.49 Cr | 600 | 6-Mar | 11-Mar | 12-Mar | 14-Mar | 14-Mar 9:27 |
| Koura Fine Diamond BSE SMEL@75.00 (36.36%) | 55 | 60 | 115 (109.09%) | | ₹5.50 Cr | 2000 | 6-Mar | 11-Mar | 12-Mar | 14-Mar | 14-Mar 9:26 |
| Sona Machinery NSE SMEL@125 (-12.59%) | 143 | 30 | 173 (20.98%) | | ₹51.82 Cr | 1000 | 5-Mar | 7-Mar | 11-Mar | 13-Mar | 13-Mar 9:31 |
| JG Chemicals IPOL@209 (-5.43%) | 221 | 5 | 226 (2.26%) | | ₹251.19 Cr | 67 | 5-Mar | 7-Mar | 11-Mar | 13-Mar | 13-Mar 9:33 |
| V R Infraspace NSE SMEL@90 (5.88%) | 85 | 6 | 91 (7.06%) | | ₹20.40 Cr | 1600 | 4-Mar | 6-Mar | 7-Mar | 12-Mar | 12-Mar 9:33 |
| R K SWAMY IPOL@250 (-13.19%) | 288 | — | 288 (0.00%) | | ₹423.56 Cr | 50 | 4-Mar | 6-Mar | 7-Mar | 12-Mar | 12-Mar 9:32 |
| Mukka Proteins IPOL@40 (42.86%) | 28 | 35 | 63 (125.00%) | | ₹224.00 Cr | 535 | 29-Feb | 4-Mar | 5-Mar | 7-Mar | 7-Mar 8:28 |
| M.V.K. Agro Food NSE SMEL@79 (-34.17%) | 120 | — | 120 (0.00%) | | ₹65.88 Cr | 1200 | 29-Feb | 4-Mar | 5-Mar | 7-Mar | 7-Mar 8:31 |
| Bharat Highways InvIT IPOL@101.10 (1.10%) | 100 | 2 | 102 (2.00%) | | ₹2500.00 Cr | 150 | 28-Feb | 1-Mar | 6-Mar | 12-Mar | 12-Mar 9:26 |
Pros & cons of IPO GMP
- Increases the possibilities of earning from the IPO.
- IPO shares are available for trade prior to their listing or subscription.
- The ability to buy IPO shares even after the subscription window has closed.
- There is no limits to the number of IPO applications for trade.
- The market is unregulated, thus there is a significant level of risk involved.
- There is no complaints outlet in case of fraud or difficulties.
- Chances of loss while listing at a discount.
- No written or official agreement to buy or sell, hence no proof of service.
What is Kostak Rate?
The Kostak rate is the amount paid by one investor to the seller of an IPO application prior to its listing. Kostak rates react in the same way that the grey market does. One can buy and sell the whole IPO application on Kostak rates outside of the market to fix their profit. The Kostak rates apply whether the investor gets an IPO allotment or not; the buyer must pay the Kostak rates for the IPO.
Selling 5 applications for an IPO at ₹1000 each results in a profit of ₹5000. Even if he receives an allotment in two applications, his profit remains at ₹5000. If the stock is sold for roughly ₹10000, the investor who purchased the application must receive the remaining ₹5000 profit. This is the most secure approach to sell your application on the IPO grey market.
Are Grey Market Stocks Safe?
It is dependent on the broker or trading people, and we believe it is not safe. If you trade in the gray market, you do it at your own risk. There may be higher fluctuations, so proceed with caution. As we propose, simply refer to the IPO GMP for listing gain purposes. Make good choices and only trade on the primary market after listing.
How to Calculate the Grey Market Premium?
The IPO GMP, also known as the grey market premium, is a price that sells in the grey market before to the IPO listing process. The calculation is based on the company’s performance, demand on the gray market, and the likelihood of subscription. If the X IPO price is fixed at ₹200 and the grey market rate is ₹100, the IPO might list at ₹300 (i.e. ₹200+₹100). Still, this is a belief, and the actual listing may differ from the gray market pricing.
How Do I Buy / Sell IPO Application in Grey Market?
There are no formal people or enterprises involved with the grey market. Some brokers buy and sell IPO applications using Kostak Rates or Subject to Sauda Rates dependent on the IPO’s GMP. One could look for local brokers who act as intermediaries between buyers and sellers and trade IPO applications on the grey market. Be informed of the current rates before purchasing or selling.
IPO Grey Market Premium Vs Kostak
| GMP (Grey Market Premium) | Kostak |
|---|---|
| GMP is the amount at which the IPO share is traded in the IPO grey market. | Kostak is an agreed price between the buyer and seller of the grey market. |
| GMP is per share. | Kostak is for the entire lot or IPO application. |
| GMP fluctuates daily. | Kostak is a fixed price between the buyer and the seller. |
| GMP is based on demand and supply shares. | Kostak is based on mutual understanding. |
| Trades executed on a GMP basis will be cancelled if the IPO applicant does not receive an allocation. | Trades executed on Kostak rate will not be cancelled even if the IPO applicant does not receive an allocation. |
Grey Market Premium vs Listing price
| GMP (Grey Market Premium) | Listing Price |
|---|---|
| In the IPO grey market, GMP refers to the amount an investor is ready to pay in excess of the IPO issue price. | The listing price is the shares’ starting price on their first day of trading. |
| GMP is a term used in the IPO grey market/unregulated markets. | Listing price is a term used in regulated markets. |
| Investors predict a listing price on the basis of GMP. | The listing price is fixed by the issuer and merchant banker. |
| GMP is on a daily basis from the day the IPO issue price is disclosed until the listing date. | The listing price is revealed on the listing day. |
IPO Grey Market Premium aka IPO GMP FAQs:
The IPO grey market is an unofficial, unregulated over-the-counter market in which IPO shares/applications are traded before they are listed on exchanges.
Investors who want to trade IPOs before the subscription opening date or listing date can do so on the gray market.
The grey market premium represents the price at which IPO shares are exchanged on the IPO grey market.
The grey market premium, often known as the GMP, helps estimate the IPO listing price.
For example, if XYZ Ltd.’s IPO issue price is Rs. 100-105 and the GMP is Rs. 60, a grey market investor is willing to spend Rs 60 per share more than the issue price of Rs 100-105 in order to purchase IPO shares for Rs 160 to 165 rupees.
The GMP is calculated using the subscription level, demand, and supply of IPO shares, as well as market sentiment.
No, the gray market premium is not correct because it is determined by share demand and supply, as well as investor and market sentiment.
The grey market premium is not always reliable, but if tracked correctly, can give an indication of the listing.
The grey market is a highly illiquid market and can be very volatile, so GMP should not be relied upon completely.
The gray market premium fluctuates daily based on the stock’s demand.
The grey market begins on the day the IPO issue price is disclosed and is last updated before the listing. The GMP helps with estimating the listing price.
Let us use an example to see how the grey market premium works:
GMP is the premium price at which initial public offering (IPO) shares trade before being placed on exchanges.
The GMP may be positive or negative. A good GMP implies that an IPO may do well after listing, whereas a negative GMP shows the IPO’s bad performance. A stock with a higher GMP may list at a large premium, whilst a stock with a lower or negative GMP may list at a discount.
The GMP price represents the price at which IPO shares are sold and purchased on the gray market.
If the grey market premium is Rs 80 and the issue price is Rs 100, then the gray market price is Rs 180, which buyers and sellers can trade at or manipulate.
You can check grey market premium prices on various websites that store information from different sources. There is no regulated or authorized source to obtain this data.
One of the websites that can help you with the GMP prices of the upcoming IPOs is Chittorgarh.com. You can find out the GMP price by following the steps below:
- Open www.chittorgarh.com
- Click on IPO to check GMP
- The IPO page will open, click on the GMP tab
- Check the GMP price and other details.
The sauda rate in an IPO is a fixed premium that an investor is willing to pay to the IPO seller if the IPO applicant is allocated shares.
The sauda rate is also known as “subject to sauda” and is a popular word in the gray market for IPOs. The sauda rate is given throughout the IPO application.
For example, an investor agrees to pay Rs 4,000 to the seller of an IPO application who has applied for 100 shares at Rs 150 each. If the applicant is allotted, he is obligated to repay listing gains/losses to the buyer of the IPO application for Rs 4,000. However, if the IPO applicant does not get the allotted shares, the transaction would be annulled.
Disclaimer
Stock market investments are subject to market hazards; please read all scheme-related papers carefully before investing. All information supplied on our IPO Portal is for educational purposes solely. We do not claim any of the facts or figures provided here.