The grey market premium aka IPO GMP is information that is calculated based on the demand of a company that is coming up with an IPO. The grey market starts unofficially in the unregulated market after the IPO date and price band announcements. IPO Investors always look at the premium of an IPO before investing in it but it might vary as per the market conditions, demand, and subscription numbers.
Current IPO GMP Rates
Check the latest IPO analysis and the estimated grey market rates of Upcoming IPO with listing gain as given below:
IPO Name | Date | IPO GMP | IPO Price | Listing Gain |
---|---|---|---|---|
Udayshivakumar Infra | 20-23 Mar | ₹12 | ₹35 | 34% |
Avalon Technologies | 3-6 Apr | ₹30 | ₹436 | 7% |
Maiden Forgings | 23-27 Mar | ₹– | ₹63 | -% |
Sotac Pharmaceuticals | 29-3 Apr | ₹7 | ₹111 | 6% |
Infinium Pharmachem | 31-5 Apr | ₹5 | ₹135 | 4% |
Exhicon Events Media Solutions | 31-5 Apr | ₹2 | ₹64 | 3% |
MOS Utility | 31-6 Apr | ₹5 | ₹76 | 7% |
Sancode Technologies | 31-6 Apr | ₹– | ₹47 | -% |
Signatureglobal India | 2023 | ₹– | ₹- | -% |
ESDS Software | 2023 | ₹– | ₹- | -% |
CMR Green Technologies | 2023 | ₹– | ₹- | -% |
Hexagon Nutrition | 2023 | ₹– | ₹- | -% |
IPO Kostak & Subject to Sauda Rates
IPO Name | Type | Kostak | Subject to Sauda |
---|---|---|---|
Udayshivakumar Infra | Mainline | ₹- | ₹2700 |
Avalon Technologies | Mainline | ₹- | ₹- |
Maiden Forgings | BSE SME | ₹- | ₹- |
Sotac Pharmaceuticals | NSE SME | ₹- | ₹- |
Infinium Pharmachem | NSE SME | ₹- | ₹- |
Exhicon Events Media Solutions | BSE SME | ₹- | ₹- |
MOS Utility | NSE SME | ₹- | ₹- |
Sancode Technologies | BSE SME | ₹- | ₹- |
Signatureglobal India | Mainline | ₹- | ₹- |
ESDS Software | Mainline | ₹- | ₹- |
CMR Green Technologies | Mainline | ₹- | ₹- |
Hexagon Nutrition | Mainline | ₹- | ₹- |
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 in 2021 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 Points to Consider about IPO GMP:
- The grey market transactions are unofficial and that is an involvement of IPO investors and the stockbrokers. It depends on the trust between both parties.
- Read our IPO analysis before applying for an IPO.
- The grey market rates are calculated and provided or sourced from the market research or the experts.
- We do not recommend trading in the Grey Market as it’s illegal.
- Kostak Rate is the premium one gets by selling his/her IPO application (in an off-market transaction) to someone else even before allotment or listing of the issue.
- Do not subscribe to the IPO on the premium given above. It may change anytime before listing.
- Subscribe only considering the Fundamentals of the companies.
Past IPO Grey Market Premium of IPO 2022-2023:
IPO Grey Market FAQs:
What is Grey Market Premium?
The “grey market premium” aka “IPO GMP” is a term people use in the IPO market to check what is the estimated price the IPO might list. The grey market is unofficial but investors look at the grey market price of an IPO to get the fixed gain of the stock. The grey market works before the IPO listing and during the days from the IPO start date to the allotment date. The grey market premium indicates how the IPO might react on a listing day with an estimated price. Let’s see how the calculation goes on. If the company comes up with an IPO of ₹100 and the grey market premium is around ₹20 then we can assume that the IPO might list at around ₹120 on its listing day. But the fact is, there is no reliability. In most cases, IPO GMP works but in some cases, it’s not. We have observed that if the IPO is in demand and the estimated HNI and QIB subscription is on a higher side, the IPO list around the given price with estimated IPO GMP.
What is Kostak Rate?
The Kostak rate is the amount that one investor pays to the seller of an IPO application before the IPO listing. As the grey market reacts the Kostak rates also react that way. One can buy and sell their full IPO application on Kostak rates outside the market and fix their profit. The Kostak rates apply the investor gets the IPO allotment or not, the buyer should pay the Kostak rates for the IPO. If one did 5 applications for one IPO and sold the same at ₹1000 per application it means he or she secured the IPO profit at ₹5000 rupees. If he gets the allotment in 2 applications still his profit will be ₹5000. Now if he sells the stock and gets a profit of around ₹10000 then he or she needs to give the remaining profit of ₹5000 to the investor who bought the application. This is the secure way to sell your application in the IPO grey market.
What is Subject to Sauda?
As per the Kostak rate, the Subject to Sauda on the application is the amount decided when the investors get the firm allotment on their IPO Application. If one buys or sells the IPO application on the subject to sauda it means one can get the said amount if one will get the allotment otherwise sauda will be cancelled. In this one can not fix their profit as it depends on the allotment. Again if one gets an allotment and he or she sold the application for around ₹10000 and the profit goes high on listing day around ₹15000 then one should pay ₹5000 to the guy who bought the application.
How to Calculate Grey Market Premium?
The IPO GMP aka grey market premium is a price that is traded in the grey market before the IPO listing process. The calculation is done based on the company’s performance, its demand in the grey market, and the probability of the subscription. Let’s assume that if the X IPO price is fixed at ₹200 and the grey market is showing the rate of ₹100 it means the IPO might list at ₹300 (ie: ₹200+₹100). Still, this is an assumption but the actual listing might vary from the grey market price.
Are Grey Market Stocks Safe?
It depends on the broker or the trading person and We suggest it is not safe. If you are trading in the grey market it will be at your own risk. There might be fluctuations on a higher side so one needs to do it with precautions. As we suggest just refer to the IPO GMP for the listing gain purpose. Be wise and trade in the primary market after listing only.
How Do I Buy / Sell IPO Application in Grey Market?
There are no official people or businesses associated with the grey market. Some brokers buy and sell IPO applications on Kostak Rates or Subject to Sauda Rates based on the IPO GMP. One should find local brokers who stay between buyers and sellers and do the grey market trading of IPO applications. Be aware of the rates and then do the buying or selling.
23 Responses
Nice information. Keep it up. I always check Ipowatch for the grey market update and most of accurate. Keep the thing upto the mark always.
True
Bank nefty primeyam
In table also provide start and end date of ipo
Electronic mart will debut at 10,pct
good information for IPO GMP and other information
plz contineu the report.
Thanks
The great results we have seen via IPO GMP Page. Each time you post the rates and the IPO settles around the rate. Keep updating.
Thanks Mahendra.
Good Information about IPO GMP, Up to Date.
PLEASE ADD COLUM OF TYPE OF IPO
SME OR NORMAL
Bikaji foods is good ipo
Yes, Its good to go but the grey market is not stable, go for long term only.
Good info helps a lot. Also provide ipo dates in front tables /chart formats.
PLEASE ADD LAST DATE OF SUBSCRIPTION
Please rectify the link for Kaynes Technology. It is pointing to wrong company!!!.
also other sites indicate GMP of 75 but here it is shown as 15.. Kindly check.
Thanks
You are giving us the useful information, please do the best in future also, thank you.
Thanks for the compliments, We will try to provide accurate information about the IPOs. Keep visiting our portal.
upto date information and almost all the IPOs are listing near to the grey market premium suggested by IPO Watch GMP page.
Excellent work guys,keep it up
Your gmp list should be shown in order of IPO closing date. The IPO which is closing in last should appear on top.
How can I buy or sell in grey market?
Yes, but it on the risk. Please contact your stock broker for the same. We do not advise to do so. Just check and grey market and apply IPO based on the fundamentals.