Grey Market Premium (IPO)

GMP IPO : Grey Market Price know as “GMP IPO” is used by people who work in IPO Market. GMP IPO is an unofficial Market Where Investors invest their money for gaining their stock. Grey market price or IPO GMP is an information that is calculated on the demands of a company making plans to conduct an IPO. The grey market is unofficially launched and is unregulated after an IPO dates and announcements for bands. IPO Investors are always looking at the cost of an IPO before investing in it, but it could vary based on the conditions of the market, demand and the subscription numbers.

What’s Grey Market premium?

GMP IPO

“The “grey market price” or “IPO GMP” is a term that people employ to describe the IPO market to determine the value that the IPO could be listed on. The grey market isn’t official however, investors who are looking at the price of the grey market on an IPO to determine the guaranteed gain for the stock. The grey market operates prior to the IPO listing, and in the time period between IPO beginning date until the allotment date. The grey market’s premium is a sign of how the IPO will react on day of the listing with an estimated price. Let’s look at how the calculation is carried out. If the company is able to come up with an IPO that is priced at Rs100, with a grey market price is about Rs20, then we can speculate that the IPO could go for in the vicinity of Rs120 on its listing day. However that there is no guarantee. In the majority of cases, IPO GMP works but in certain cases, it doesn’t. We have seen that if the IPO is popular in the market and the HNI estimate and QIB subscription are on a higher level, then the IPO price will be based on the price and the estimated IPO GMP.

Find the most up-to-date IPO analysis and estimate grey market rates below:

Name of the IPO GMP Kostak Subject
Latent View Analytics Rs350 Rs350 Rs20000
Tarsons Product Rs210 Rs500 Rs3000
Go Fashion Rs500 Rs250 Rs8000
GoAir Rs- Rs- Rs-
Skanray Technologies Rs- Rs- Rs-
Mobikwik Rs- Rs- Rs-
Ruchi Soya Rs- Rs- Rs-

Let’s find out how we can determine the estimated price for listing after adding the cost of a premium. If the gray market says the cost for an IPO is around Rs100, and the IPO price is in the region of Rs200, The estimated listing price is around 300 rupees. According to the calculations,, the listing gains is 50% of what is the IPO price.

The price for an IPO may differ from the estimate price for listing that is suggested in the gray market due to the bear market or bear market, or the market demand for the company’s shares. We’ve seen that some of the IPOs featured lower grey market, but listed with higher gains, whereas there were a few IPOs in 2021 had gray market was the upper than the market, yet it was listed at lower levels. The grey market is one of the main factors to consider when calculating listing gain in the IPO list gain calculations, but we strongly advise investors to utilize gray market prices to provide only informational purposes, and not make trades based on figures.

Are stocks in the Grey Market safe?

It’s up to the broker or trader, and we suggest that you do not take risks. If you’re trading on the grey market , you is entirely at risk. There could be volatility at a higher level, therefore it is best to proceed with caution. We suggest referring on the IPO GMP to determine the purpose of listing gain. Be cautious and trade on the primary market following the listing.

Important Factors to Take into Account concerning IPO GMP:

  • The transactions in the grey market are not official and there is the result of an interaction between IPO stockbrokers and investors. It is based on trust between the two parties.
  • Check out our IPO analysis before submitting for an IPO.
  • Rates for the grey market are calculated and then provided or derived from research conducted by the market or experts.
  • We don’t advise trading on the Grey Market because it is illegal.
  • Kostak Rate represents the amount one can earn by selling one’s IPO applications (in the form of an off market transaction) to someone else before the allotment or listing the issue.
  • Do not sign up for the IPO at the price mentioned above. The price could change any time before the IPO’s announcement.
  • Only subscribe to the fundamentals of the company.

How do I buy or Sell IPO Application on Grey Market?

There are no officially recognized people or companies that are connected to the gray market. Brokers buy as well as sell IPO applications using Kostak Rates or subject to Sauda Rates that are based upon their IPO GMP. You should look for local brokers that are able to stay between sellers and buyers and also conduct the trading in the grey market of IPO applications. Be aware of the prices and then you can buy or selling.

Market Premium: Grey Market Premium:

Name of IPO Price GMP List
Sapphire Foods Rs1150 Rs150 Rs1350
Patm Rs2150 Rs30 Rs1950
Sigachi Industries Rs163 Rs230 Rs570
SJS Enterprises Rs542 Rs60 Rs542
Policybazaar Rs980 Rs150 Rs1150
Nykaa Rs1125 Rs750 Rs2018
Aditya Birla AMC Rs712 Rs25 Rs715
Paras Defence Rs175 Rs220 Rs469
Sansera Engineering Rs744 Rs65 Rs811
Vijaya Diagnostic Rs531 Rs0 Rs540
Ami Organics Rs610 Rs150 Rs910
Aptus Value Housing Rs353 Rs0 Rs333
Chemplast Sanmar Rs541 Rs0 Rs550
Nuvoco Vistas Rs570 Rs0 Rs485
CarTrade Rs1618 Rs150 Rs1505
Windlas Biotech Rs460 Rs85 Rs437
Devyani International Rs90 Rs55 Rs141
Tiles Exxaro Rs120 Rs15 Rs126
Krsnaa Diagnostics Rs954 Rs320 Rs1005
Rolex Rings Rs900 Rs450 Rs1250
Glenmark Life Sciences Rs720 Rs90 Rs750
Tatva Chintan Pharma Rs1083 Rs1100 Rs2111
Zomato Rs76 Rs25 Rs126
GR Infraprojects Rs837 Rs560 Rs1716
Clean Science Rs900 Rs620 Rs1784
India Pesticides Rs296 Rs65 Rs350
Dodla Dairy Rs428 Rs95 Rs550
KIMS Hospital Rs825 Rs110 Rs1009
Shyam Metalics Rs306 Rs135 Rs380
Sona BLW Precision Rs291 Rs5 Rs301
Lodha Developers Rs486 Rs0 Rs436
Barbeque Nation Rs500 Rs0 Rs482
Suryoday Small Bank Rs305 Rs0 Rs293
Kalyan Jewellers Rs87 Rs0 Rs74
Anupam Rasayan Rs555 Rs70 Rs520
Laxmi Organic Rs130 Rs45 Rs155
Craftsman Automation Rs1490 Rs32 Rs1359
Nazara Technologies Rs1101 Rs700 Rs1990
Easy Trip Planners Rs187 Rs140 Rs212
MTAR Technologies Rs575 Rs500 Rs1050
Heranba Industries Rs627 Rs270 Rs900
Nureca Limited Rs400 Rs80 Rs615
Brookfield India REIT Rs275 Rs0 Rs281
Stove Kraft Rs385 Rs65 Rs298
Home First Finance Rs518 Rs150 Rs618
Indigo Paints Rs1490 Rs900 Rs2607
RailTel Rs94 Rs15 Rs109
IRFC Rs26 Rs0.50 Rs25
Antony Waste Rs315 Rs105 Rs436

How do I Calculate How to Calculate Grey Market Premium?

The IPO GMP also known as Grey Market Premium is cost that is traded on the grey market prior to the IPO listing procedure. The calculation is made by analyzing the performance of the company, its demand on the market for grey goods, as well as the likelihood of the acceptance. If you assume that the X IPO cost is set at Rs200, while the grey market price is an amount of Rs100, it indicates that the IPO could go under the hood at 300 rupees (ie the price is Rs200+ Rs100). However, this is just an assumption, but the actual price of listing could differ depending on the grey market rate.

What is Kostak Rate is it same as Kostak?

A Kostak rates is the price an investor is required to pay to the seller of an IPO application prior to IPO listing. When the market is reacted to by the grey market, to the Kostak rates react the same in the same way. You can purchase and sell their complete IPO application using Kostak rates that are not in the market and then fix their profits. The Kostak rates will determine if to the investor whether they receive the IPO allotment or not. the buyer must pay Kostak rate for IPO. If a person submitted five application in one IPO and then sold it for Rs.1000 each, that means they got the IPO profit of Rs5000. If the investor gets the allotment for two applications, his gain will be about the sum of Rs5000. If he decides to sell the stock and makes some sort of profit, say around $1000 then he has to return the rest of the profit that is Rs5000, to the person who purchased the application. This is the safest way to market your application in the IPO gray market.

What is subject to Sauda?

Based on the Kostak rate, the subject to Sauda on the application is that investors receive when they get an allotment of money of the IPO Application. If one decides to purchase or sell the IPO application in this subject, that is possible to receive the amount stated if they receives the allotment or else sauda is cancelled. This means that one cannot adjust their profits as it will depend on the amount allotted. If one is granted an allotment, and he or sold the application for 100000 and the profits go high on the day of listing, around 15000, then the buyer should pay the seller Rs5000 who bought the app.

 

  1. What is GMP in IPO

    The “grey market price” or “IPO GMP” is a term that people employ to describe the IPO market to determine the value that the IPO could be listed on. The grey market isn’t official however, investors who are looking at the price of the grey market on an IPO to determine the guaranteed gain for the stock. The grey market operates prior to the IPO listing, and in the time period between IPO beginning date until the allotment date.

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