IPO Grey Market Premium (GMP) refers to the informal market in which investors purchase and sell shares of a business before they are listed on the stock exchange. The grey market and IPO parallel market are other names for it.
The grey market doesn’t have permission from any stock exchange or regulatory body and operates outside of the legal system. Investor mood and conjecture on the demand for the IPO shares following listing are the key drivers of it.
Current IPO Grey Market Premium Rates, IPO Grey Market Price
Check out the most recent IPO research and the anticipated listing gain of upcoming IPOs with expected grey market pricing as shown below:
| IPO Name | IPO Price (₹) | IPO GMP (₹) | Listing Gain (₹) | Open | Close | Listing | Application |
|---|---|---|---|---|---|---|---|
| Bharti Hexacom IPO | 570 | 37 | 607 (6.49% | 3-Apr | 5-Apr | 12-Apr | View IPO |
| Creative Graphics Solutions NSE SME | 85 | 47 | 132 (55.29%) | 28-Mar | 4-Apr | 9-Apr | View IPO |
| K2 Infragen NSE SME | 119 | 30 | 149 (25.21%) | 28-Mar | 3-Apr | 8-Apr | View IPO |
| Aluwind Architectural NSE SME | 45 | 7 | 52 (15.56%) | 28-Mar | 4-Apr | 9-Apr | View IPO |
| Jay Kailash Namkeen BSE SME | 73 | 38 | 111 (52.05%) | 28-Mar | 3-Apr | 8-Apr | View IPO |
| Yash Optics & NSE SME | 81 | 20 | 101 (24.69%) | 27-Mar | 3-Apr | 8-Apr | View IPO |
| TAC Infosec NSE SME | 106 | 107 | 213 (100.94%) | 27-Mar | 2-Apr | 5-Apr | View IPO |
| Radiowalla NSE SME | 76 | 43 | 119 (56.58%) | 27-Mar | 2-Apr | 5-Apr | View IPO |
| GConnect Logitech BSE SME | 40 | 9 | 49 (22.50%) | 26-Mar | 28-Mar | 3-Apr | View IPO |
| Trust Fintech NSE SME | 101 | 49 | 150 (48.51%) | 26-Mar | 28-Mar | 3-Apr | View IPO |
| SRM Contractors IPO | 210 | 125 | 335 (59.52%) | 26-Mar | 28-Mar | 3-Apr | View IPO |
| Blue Pebble NSE SME | 168 | 15 | 183 (8.93%) | 26-Mar | 28-Mar | 3-Apr | View IPO |
| Aspire & Innovative NSE SME | 54 | 0 | 54 (0.00%) | 26-Mar | 28-Mar | 3-Apr | View IPO |
| Naman In-Store (India) NSE SME | 89 | 45 | 134 (50.56%) | 22-Mar | 27-Mar | 2-Apr | View IPO |
| Vruddhi Engineering Works BSE SME | 70 | — | 70 (0.00%) | 21-Mar | 26-Mar | 1-Apr | View IPO |
| Vishwas Agri Seeds NSE SME | 86 | 9 | 95 (10.47%) | 21-Mar | 26-Mar | 1-Apr | View IPO |
| Omfurn India SME FPO | 75 | — | 75 (0.00%) | 20-Mar | 22-Mar | 28-Mar | View IPO |
| Chatha Foods BSE SME | 56 | 10 | 66 (17.86%) | 19-Mar | 21-Mar | 27-Mar | View IPO |
| Enser Communications NSE SME | 70 | — | 70 (0.00%) | 15-Mar | 19-Mar | 22-Mar | View IPO |
| Enfuse Solutions NSE SME | 96 | 40 | 136 (41.67%) | 15-Mar | 19-Mar | 22-Mar | View IPO |
| KP Green Engineering BSE SME | 144 | 50 | 194 (34.72%) | 15-Mar | 19-Mar | 22-Mar | View IPO |
| Krystal Integrated Services IPO | 715 | 60 | 775 (8.39%) | 14-Mar | 18-Mar | 21-Mar | View IPO |
| AVP Infracon NSE SME | 75 | 0 | 75 (0.00%) | 13-Mar | 15-Mar | 20-Mar | View IPO |
| Popular Vehicles & IPO | 295 | 0 | 295 (0.00%) | 12-Mar | 14-Mar | 19-Mar | View IPO |
| Royal Sense BSE SME | 68 | 37 | 105 (54.41%) | 12-Mar | 14-Mar | 19-Mar | View IPO |
| Signoria Creation NSE SME | 65 | 60 | 125 (92.31%) | 12-Mar | 14-Mar | 19-Mar | View IPO |
| Pratham EPC Projects NSE SME | 75 | 27 | 102 (36.00%) | 11-Mar | 13-Mar | 18-Mar | View IPO |
| Pune E-Stock Broking BSE SME | 83 | 40 | 123 (48.19%) | 7-Mar | 12-Mar | 15-Mar | View IPO |
| Koura Fine Diamond BSE SME | 55 | 60 | 115 (109.09%) | 6-Mar | 11-Mar | 14-Mar | View IPO |
| Shree Karni Fabcom NSE SME | 227 | 30 | 257 (13.22%) | 6-Mar | 11-Mar | 14-Mar | View IPO |
| Gopal Snacks IPO | 401 | -25 | 376 (-6.23%) | 6-Mar | 11-Mar | 14-Mar | View IPO |
| Sona Machinery NSE SME | 143 | 30 | 173 (20.98%) | 5-Mar | 7-Mar | 13-Mar | View IPO |
| JG Chemicals IPO | 221 | 5 | 226 (2.26%) | 5-Mar | 7-Mar | 13-Mar | View IPO |
| V R Infraspace NSE SME | 85 | 6 | 91 (7.06%) | 4-Mar | 6-Mar | 12-Mar | View IPO |
| R K SWAMY IPO | 288 | 0 | 288 (0.00%) | 4-Mar | 6-Mar | 12-Mar | View IPO |
| Mukka Proteins IPO | 28 | 35 | 63 (125.00%) | 29-Feb | 4-Mar | 7-Mar | View IPO |
| M.V.K. Agro Food NSE SME | 120 | 0 | 120 (0.00%) | 29-Feb | 4-Mar | 7-Mar | View IPO |
| Bharat Highways InvIT IPO | 100 | 2 | 102 (2.00%) | 28-Feb | 1-Mar | 6-Mar | View IPO |
| Exicom Tele-Systems IPO | 142 | 160 | 302 (112.68%) | 27-Feb | 29-Feb | 5-Mar | View IPO |
| Platinum Industries IPO | 171 | 87 | 258 (50.88%) | 27-Feb | 29-Feb | 5-Mar | View IPO |
| Purv Flexipack NSE SME | 71 | 130 | 201 (183.10%) | 27-Feb | 29-Feb | 5-Mar | View IPO |
| Owais Metal and Mineral NSE SME | 87 | 100 | 187 (114.94%) | 26-Feb | 28-Feb | 4-Mar | View IPO |
| Sadhav Shipping NSE SME | 95 | 30 | 125 (31.58%) | 23-Feb | 27-Feb | 1-Mar | View IPO |
| GPT Healthcare IPO | 186 | 17 | 203 (9.14%) | 22-Feb | 26-Feb | 29-Feb | View IPO |
| Juniper Hotels IPO | 360 | 0 | 360 (0.00%) | 21-Feb | 23-Feb | 28-Feb | View IPO |
| Deem Roll Tech NSE SME | 129 | 78 | 190 (47.29%) | 20-Feb | 22-Feb | 27-Feb | View IPO |
| Zenith Drugs NSE SME | 79 | 35 | 99 (25.32%) | 19-Feb | 22-Feb | 27-Feb | View IPO |
| Kalahridhaan Trendz NSE SME | 45 | 3 | 48 (6.67%) | 15-Feb | 20-Feb | 23-Feb | View IPO |
| Thaai Casting NSE SME | 77 | 80 | 157 (103.90%) | 15-Feb | 20-Feb | 23-Feb | View IPO |
| Atmastco NSE SMEUpcoming | 77 | 6 | 83 (7.79%) | 15-Feb | 20-Feb | 23-Feb | View IPO |
| Interiors and More NSE SMEUpcoming | 227 | 36 | 263 (15.86%) | 15-Feb | 20-Feb | 23-Feb | View IPO |
| Esconet Technologies NSE SME | 84 | 100 | 184 (119.05%) | 16-Feb | 20-Feb | 23-Feb | View IPO |
| Vibhor Steel Tubes | 151 | 140 | 291 (92.72%) | 13-Feb | 15-Feb | 20-Feb | View IPO |
| WTI Cabs NSE SME | 147 | 71 | 218 (48.30%) | 12-Feb | 14-Feb | 19-Feb | View IPO |
| Entero Healthcare Solutions IPO | 1258 | 2 | 1260 (0.16%) | 9-Feb | 13-Feb | 16-Feb | View IPO |
| Polysil Irrigation Systems NSE SME | 54 | — | 54 (0.00%) | 8-Feb | 13-Feb | 16-Feb | View IPO |
| Alpex Solar NSE SME | 115 | 148 | 263 (128.70%) | 8-Feb | 12-Feb | 15-Feb | View IPO |
| Rudra Gas Enterprise BSE SME | 63 | 57 | 120 (90.48%) | 8-Feb | 12-Feb | 15-Feb | View IPO |
| Jana Small Finance IPO | 414 | 16 | 430 (3.86%) | 7-Feb | 9-Feb | 14-Feb | View IPO |
| Capital Small Finance IPO | 468 | — | 468 (0.00%) | 7-Feb | 9-Feb | 14-Feb | View IPO |
| Rashi Peripherals IPO | 311 | 34 | 345 (10.93%) | 7-Feb | 9-Feb | 14-Feb | View IPO |
| Italian Edibles NSE | 68 | 12 | 80 (17.65%) | 2-Feb | 7-Feb | 12-Feb | View IPO |
| Apeejay Surrendra Park IPO | 155 | 38 | 193 (24.52%) | 5-Feb | 7-Feb | 12-Feb | View IPO |
| Gabriel Pet Straps BSE SME | 101 | 50 | 151 (49.50%) | 31-Jan | 2-Feb | 7-Feb | View IPO |
| BLS E-Services | 135 | 155 | 290 (114.81%) | 30-Jan | 1-Feb | 6-Feb | View IPO |
| Baweja Studios NSE SMEUpcoming | 180 | 2 | 182 (1.11%) | 29-Jan | 1-Feb | 6-Feb |
Let’s see how to calculate the estimated listing price after adding a premium. If the grey market shows the rate of an IPO is ₹100 and the IPO price is around ₹200 then the estimated listing price will be around ₹300. Based on the calculation the listing gain will be 50% against the IPO price.
The listing of an IPO might vary against the estimated listing price suggested by the grey market due to the bull/bear market or the demand for the company shares. We have witnessed that some of the IPOs had lower grey market but listing with higher gains while few IPOs where the grey market was on a higher side but the listing was at the lower levels. As the grey market is always one of the strong factors for the IPO listing gain calculation but we highly recommend investors to use the grey market rates for just information, do not trade based on the numbers.
Important Factors to Consider About IPO GMP:
- The stockbrokers and IPO investors participate in unauthorized grey market trades. The level of trust between the parties determines this.
- Prior to applying for an IPO, read our IPO analysis.
- The prices in the grey market are estimated, offered, or obtained from specialists or market research.
- Since trading on the Grey Market is illegal, we do not advise it.
- The Kostak Rate is the premium one receives when selling an IPO application to someone else (in an off-market transaction) even before the issue is allotted or listed.
- Don’t invest in the IPO using the aforementioned premium. Prior to listing, it could alter at any time.
- Consider solely the fundamentals of the company before subscribing.
Listed IPO Grey Market Premium of IPO 2023, 2024
FAQs about IPO Grey Market Premium:
What is Grey Market Premium?
In the IPO market, individuals use the phrase “grey market premium” (also known as “IPO GMP”) to determine the potential listing price of an IPO. Although the grey market is unauthorized, investors look at it to determine the stock’s fixed gain. The grey market operates in the days leading up to the IPO start date and the days after it until the allotment date. The grey market premium provides an estimate of how the IPO could perform on the day it lists.
What is Kostak Rate?
The sum that one investor pays to the seller of an IPO application prior to the IPO listing is known as the Kostak rate. The Kostak rates likewise change in the same manner as the grey market. One can set their profit by purchasing and selling their whole IPO application at Kostak prices outside of the market. The buyer must pay the Kostak rates for the IPO regardless of whether the investor receives an IPO allotment. If someone submitted five applications for a single IPO and sold those applications for ₹1,000 each, that person would have achieved an IPO profit of 5,000 rupees. Even if he receives the allocation after only two applications, he will still make 5,000.
How to Calculate Grey Market Premium?
The IPO GMP, often referred to as the grey market premium, is a price that is transacted on the black market prior to the IPO listing procedure. Based on the company’s performance, its demand on the grey market, and the likelihood that someone will subscribe, an estimate is made. Let’s imagine that the IPO could list at 300 (i.e., 200 + 100) if the X IPO price is fixed at 200 and the grey market is displaying a rate of 100. This is only a guess, though, thus the listing’s actual price could be different from the black market pricing.
How Can I Buy or Sell an IPO Application on the GMP?
The grey market is not officially affiliated with any individuals or organizations. On the basis of the IPO GMP, certain brokers purchase and sell IPO applications on Kostak Rates or Subject to Sauda Rates. Find local brokers that act as a middleman between buyers and sellers and trade IPO applications on the grey market. Before purchasing or selling, be aware of the rates.
Are Grey Market Premium Stocks Safe?
It is up to the broker or trader, and we believe it is not safe. Trading on the black market is done at your own risk. One needs to take measures because there may be higher-than-average volatility. Simply refer to the IPO GMP as we advise for the purpose of listing gain. Be shrewd and only trade after listing on the principal market.