IPO GMP, Latest IPO Grey Market Premium & Kostak Rates

IPO GMP or Grey Market Premium is the price at which an IPO share is traded in the grey market before its listing on the stock exchange. GMP is an indicator of the market demand for the IPO shares and reflects the perceived value of the IPO. It’s calculated by subtracting the issue price of the IPO from the price at which it is traded in the grey market.

About Grey Market Price

The grey market is an unofficial market for trading shares of companies that have not yet listed on a stock exchange. The grey market is not regulated by any government or financial institution, and prices are set by supply and demand.

The grey market price can be influenced by various factors, including investor sentiment, demand for the company’s shares, expected performance and growth prospects, market conditions, and the perceived value of the IPO.

Important Note: Grey market trading is considered illegal in some jurisdictions. Please ensure compliance with local laws and regulations.

Latest IPO GMP Today

Check the latest IPO grey market premium (GMP) today for upcoming IPO in India with the estimated listing gains of Mainboard IPO as given below:

IPO Name	IPO GMP	IPO Price	Listing Gain
Western Carriers 13-18 Sept	₹15	₹172	9%
Arkade Developers 16-19 Sept	₹65	₹128	51%
Northern Arc Capital 16-19 Sept	₹150	₹263	57%
Manba Finance 23-25 Sept	₹60	₹120	50%
KRN Heat Exchanger 25-27 Sept	₹225	₹220	102%

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SME IPO GMP TODAY

Check the latest SME IPO Grey Market Premiums (GMP) today for upcoming SME IPOs in India with the listing gains of SME IPO as given below:

IPO Name	IPO Type	IPO GMP	IPO Price	Listing Gains [in Percentage]
Veritaas Advertising IPO	SME	₹100	₹114	87.71%
Indian Emulsifiers IPO	SME	₹200	₹132	151.51%
Mandeep Auto Industries IPO	SME	₹15	₹67	22.38%
ABS Marine Services IPO	SME	₹100	₹147	68%
Premier Roadlines IPO	SME	₹10	₹67	15%
Energy Mission Machineries IPO	SME	₹110	₹138	80%
Silkflex Polymers IPO	SME	₹5	₹52	9.61%
Winsol IPO	SME	₹190	₹75	253.33%
Refractory Shapes IPO	SME	₹15	₹31	48.38%
Slone Infosystems IPO	SME	₹60	₹79	75.94%

IPO Kostak and Subject to Sauda Rates

Company	Kostak	Subject	Date	Type
Orient Technologies	₹–	₹4,000	21-23 Aug	Mainline
Premier Energies	₹1,500	₹5,500	27-29 Aug	Mainline
ECOS Mobility	₹300	₹5,000	28-30 Aug	Mainline
Baazar Style Retail	₹–	₹4,000	30-3 Sept	Mainline
Gala Precision Engineering	₹–	₹–	2-4 Sept	Mainline
Bajaj Housing Finance	₹–	₹–	Sept 2024	Mainline
Ideal Technoplast	₹–	₹10,000	21-23 Aug	NSE SME
QVC Exports	₹–	₹90,000	21-23 Aug	NSE SME
Resourceful Automobile	₹–	₹70,000	22-26 Aug	BSE SME
Rapid Multimodal	₹–	₹–	22-27 Aug	BSE SME
Indian Phosphate	₹–	₹90,000	26-29 Aug	NSE SME
Vdeal System	₹–	₹10,000	26-29 Aug	NSE SME
Jay Bee Laminations	₹-	₹50,000	25-29 Aug	NSE SME
Paramatrix Technologies	₹-	₹-	27-30 Aug	NSE SME
Aeron Composite	₹-	₹-	28-30 Aug	NSE SME
Travels & Rentals	₹-	₹20,000	29-2 Sept	BSE SME
Archit Nuwood	₹-	₹80,000	30-3 Sept	BSE SME
Boss Packaging Solutions	₹-	₹-	30-3 Sept	NSE SME
Jeyyam Global Foods	₹-	₹-	2-4 Sept	NSE SME

Disclaimer

• The estimated IPO Grey Market Premium (GMP) mentioned here is valid for a specific time and it may change anytime.
• We do not facilitate the buying or selling IPO forms on the grey market.
• Due to stock market conditions, the IPO listing might differ from the estimated IPO GMP price.
• It is highly recommended that all the rates shown here are for educational purposes. Do not subscribe to an IPO based only on the premium price, as this may change before the listing. Subscribe to an IPO based solely on the fundamentals of the companies.

When investing in the Indian financial markets, understanding the concept of IPO GMP known as IPO Grey Market Premium, is crucial. It refers to the premium paid in the grey market for company shares before its official listing on the stock exchange. This premium represents the market’s perception of the potential value and demand for the company’s shares.

It is an important indicator for investors as it provides insights into the level of investor interest and the potential for price appreciation once the shares are listed. So, keeping track of IPO grey market activities and monitoring the IPO grey market premium can be valuable in making informed investment decisions in the Indian financial markets. Checkout the list of new IPO GMP & make an investment today!!

Taking a Peek into Trading

Operating Principles: It’s an unregulated landscape where deals are made through phone calls. Cash settlements, facilitated by services like Angadia, reflect trust-based transactions.

The Three Key Players: Buyers, sellers, and dealers engage in the grey market’s dance. Trust and references play a significant role in transactions involving IPO shares or applications.

Understanding Different Rates

IPO Grey Market Premium (GMP):

   – A positive GMP suggests potential for a strong listing, while a negative or low GMP indicates uncertainty or possible discounts during listing.

   – Examples illustrate potential profits or losses based on GMP and actual listing prices.

Kostak Rate:

   – An agreed-upon price for entire IPO applications, ensuring gains for sellers regardless of allotment outcomes.

Sauda Rate:

   – An extension to Kostak, where buyers agree to pay more if the seller secures IPO allotment, providing added potential gains at a higher rate than Kostak.

Decoding Grey Market Metrics

Grey Market Premium vs Kostak: GMP fluctuates per share, while Kostak remains fixed for the entire lot. GMP depends on demand and supply, while Kostak relies on mutual understanding.

Grey Market Premium vs Listing Price: GMP shows investor willingness, while the listing price is an official declaration. Investors use GMP as a prediction tool, while the listing price is set by issuers and merchant bankers.

Balancing the Pros and Cons

Advantages:

   – Increased chances for profit, availability of shares before official listing, post-subscription trading, and no limits on applications.

Disadvantages:

   – High risks due to lack of regulation, absence of grievance forums, potential losses if listings disappoint, and a lack of official documentation.

What is IPO GMP?

An IPO GMP (IPO grey market premium) is the difference between the price at which shares of an Initial Public Offering (IPO) are traded in the grey market and the issue price set by the company. This is how it works; when a company is preparing for an IPO, the price at which its shares are going to be issued is called the issue price. On the other hand, the price at which these same shares are traded before they get listed on the stock exchanges is referred to as grey market price.

The period between when an issuer files with regulatory authorities and when it begins trading publicly on stock exchanges is known as the grey market period. During this period, buyers and sellers can trade in these unlisted shares without going through any official channels or stock exchanges.

The grey market is an unofficial market in which shares can be purchased and sold before their listing on a stock exchange. GMP can be used to estimate investor sentiment toward an IPO. A high GMP indicates that investors are positive about the company and expect its share price to rise once it is listed on the stock exchange. A low GMP indicates that investors are thinking negatively about the company and expect the share price to fall when it lists.

It is important to note that the GMP is not always a trustworthy indicator of how the share price will perform once the IPO is listed on the stock exchange. A variety of factors can influence the share price on the listing, including the level of demand from institutional investors and general market conditions. The GMP is simply a measure of investor sentiment at a given time.

The actual performance of the shares will be determined by several factors, including the company’s performance, overall market conditions, and others. The IPO Grey Market Premium (GMP) is a key factor that attracts the attention of potential investors. This article aims to provide a detailed understanding of GMP, IPOs, and their significance in the IPO grey market.

The IPO GMP provides an indication of market sentiment toward the IPO. If the GMP is positive, it means that the shares are trading at a higher price than the issue price, indicating high demand for the IPO. A negative GMP, on the other hand, indicates that the shares are trading below the issue price, showing that demand is weak.

Let’s look at how to calculate the estimated listing price after involving a premium. If the grey market rate for an IPO is ₹100 and the IPO price is around ₹200, the estimated listing price will be around ₹300. Based on the calculations, the listing gain will be 50% of the IPO price.

The listing of an IPO may differ from the estimated listing price suggested by the grey market due to the bull/bear market or demand for the company’s shares. We have seen that some IPOs had lower grey markets but listed with higher gains, whereas a few IPOs in 2021 had a higher grey market but a lower listing. As the grey market is always a strong factor in calculating IPO listing gains, we strongly advise investors to use grey market rates as information only and not to trade based on them.

Important Points to Consider about the Grey Market:

• The grey market transactions are unofficial, involving IPO investors and stockbrokers. It is based on the 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 experts.
• We do not recommend trading in the grey market because it is illegal.
• 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 with the premium listed above. It might change the time before listing.
• Subscribe only after considering the company’s fundamentals.

IPO Grey Market Premium Archive 2024 | 2023:

IPO Name	Price	GMP Rate	Listed
Interarch Building Products	₹900	₹330	₹1299
Saraswati Saree	₹160	₹45	₹94
FirstCry	₹465	₹75	₹651
Unicommerce eSolutions	₹108	₹65	₹235
Ola Electric	₹76	₹-	₹76
Ceigall India	₹401	₹12	₹419
Akums Drugs	₹679	₹55	₹725
Sanstar	₹95	₹30	₹109
Bansal Wire	₹256	₹75	₹356
Emcure Pharmaceuticals	₹1008	₹300	₹1325
Vraj Iron and Steel	₹207	₹50	₹240
Allied Blenders	₹281	₹60	₹320
Stanley Lifestyles	₹369	₹160	₹499
DEE Piping Systems	₹203	₹95	₹339
Akme Fintrade	₹120	₹18	₹125
Ixigo	₹93	₹30	₹138
Kronox Lab Sciences	₹136	₹25	₹165
Awfis Space	₹383	₹125	₹435
Go Digit	₹272	₹25	₹281
Aadhar Housing	₹350	₹50	₹350
TBO TEK	₹920	₹350	₹1426
Indegene	₹452	₹290	₹655
JNK India	₹415	₹130	₹621
Vodafone Idea	₹11	₹1.40	₹11.80
Bharti Hexacom	₹570	₹90	₹755
SRM Contractors	₹210	₹125	₹215
Krystal Integrated	₹715	₹55	₹795
Popular Vehicles	₹295	₹-	₹289
Gopal Snacks	₹401	₹-	₹351
JG Chemicals	₹221	₹5	₹209
R K SWAMY	₹288	₹-	₹250
Mukka Proteins	₹28	₹35	₹44
Exicom Tele-Systems	₹142	₹150	₹265
Platinum Industries	₹171	₹100	₹225
GPT Healthcare	₹186	₹10	₹195
Juniper Hotels	₹360	₹0	₹361
Vibhor Steel Tubes	₹151	₹130	₹425
Entero Healthcare Solutions	₹1258	₹0	₹1245
Rashi Peripherals	₹311	₹40	₹339
Capital Small Finance Bank	₹468	₹0	₹430
Jana Small Finance Bank	₹414	₹15	₹396
Apeejay Surrendra Park Hotels	₹155	₹35	₹187
BLS E-Services	₹135	₹150	₹305
Nova Agri Tech	₹41	₹15	₹55
EPACK Durable	₹230	₹5	₹221
Medi Assist Healthcare	₹418	₹35	₹465
Jyoti CNC Automation	₹331	₹45	₹370
Innova Captab	₹448	₹85	₹456
Azad Engineering	₹524	₹200	₹706
RBZ Jewellers	₹100	₹5	₹100
Happy Forgings	₹850	₹250	₹1000
Credo Brands (Mufti Jeans)	₹280	₹100	₹282
Motisons Jewellers	₹55	₹56	₹109
Suraj Estate Developers	₹360	₹15	₹340
Muthoot Microfin	₹291	₹25	₹275
Inox India	₹660	₹550	₹934
DOMS IPO	₹790	₹490	₹1300
India Shelter Finance	₹493	₹165	₹620
Flair Writing	₹304	₹150	₹503
Gandhar Oil	₹169	₹75	₹298
Fedbank Financial Services	₹140	₹-	₹138
Tata Technologies	₹500	₹430	₹1200
IREDA	₹32	₹12	₹50
ASK Automotive	₹282	₹30	₹305
Protean eGov Technologies	₹792	₹40	₹792
ESAF Small Finance Bank	₹60	₹20	₹71
Mamaearth	₹324	₹30	₹330
Cello World	₹648	₹180	₹829
Blue Jet Healthcare	₹346	₹25	₹380
IRM Energy	₹505	₹15	₹478
Plaza Wires	₹54	₹25	₹76
Valiant Laboratories	₹140	₹25	₹162
Updater Services	₹300	₹-	₹285
Manoj Vaibhav Gems	₹215	₹10	₹215
JSW Infrastructure	₹119	₹30	₹143
Yatra Online	₹142	₹-	₹127
Sai Silks Kalamandir	₹222	₹7	₹231
Signature Global	₹385	₹40	₹444
Zaggle Prepaid Ocean Services	₹164	₹15	₹164
Samhi Hotels	₹126	₹2	₹134
EMS IPO	₹211	₹100	₹282
RR Kabel	₹1035	₹95	₹1140
Jupiter Life Line Hospitals	₹735	₹230	₹973
Rishabh Instruments	₹441	₹65	₹460
Ratnaveer Precision Engineering	₹98	₹50	₹128
Vishnu Prakash R Punglia	₹99	₹60	₹165
Aeroflex Industries	₹108	₹65	₹197
Pyramid Technoplast	₹166	₹20	₹187
TVS Supply Chain Solutions	₹197	₹-	₹207
Concord Biotech	₹741	₹110	₹900
SBFC Finance	₹57	₹30	₹82
Yatharth Hospital	₹300	₹80	₹306
Netweb Technologies	₹500	₹400	₹947
Utkarsh Small Finance Bank	₹25	₹15	₹40
Senco Gold	₹317	₹100	₹430
Cyient DLM	₹265	₹150	₹402
IdeaForge	₹672	₹510	₹1300
HMA Agro	₹585	₹-	₹625
IKIO Lighting	₹285	₹100	₹391
Nexus Select Trust	₹100	₹5	₹103
Mankind Pharma	₹1080	₹100	₹1300
Avalon Technologies	₹436	₹10	₹436
Udayshivakumar Infra	₹35	₹5	₹30
Global Surfaces	₹140	₹15	₹164
Divgi TorqTransfer Systems	₹590	₹40	₹620
Sah Polymers	₹65	₹10	₹85
Radiant Cash Management	₹99	₹3	₹103

More About Grey Market Premium

The IPO Grey Market Premium (IPO GMP) is the premium or additional price at which IPO shares are unofficially traded before their official listing on the stock exchange. It shows the market’s assessment of the potential value and demand for the shares.

The “grey market premium” (also known as the “IPO GMP”) is a term used in the IPO market to determine the estimated price of an IPO. It is unofficial, but investors use an IPO’s grey market price to calculate the stock’s fixed gain. It works before the IPO listing and during the days between the IPO start date and the allotment date. The grey market premium predicts how the IPO will perform on the listing day with an estimated price.

Factors Influencing IPO GMP

• 1. Market Sentiment: One key factor that influences IPO GMP is the overall market sentiment. If the market is bullish and investor confidence is high, it can increase demand for IPO shares and, consequently, a higher GMP. On the other hand, during market volatility or pessimism periods, GMP may be lower as investors become more cautious.
• 2. Company Fundamentals: The financial health and prospects of the issuing company significantly impact the grey market premium. Investors assess factors such as revenue growth, profitability, competitive position, and prospects to determine the potential value of the shares. A strong company with solid fundamentals is likely to attract higher GMP.
• 3. Industry Performance: The performance and outlook of the company’s industry also play a role in determining IPO GMP. If the industry is experiencing rapid growth or is in a favourable position, it can generate increased interest and demand for the IPO shares, resulting in a higher GMP.
• 4. Market Demand and Supply: The balance between market demand and supply of IPO shares can influence GMP. If there is a high demand from investors and a limited supply of shares, the GMP is likely to be higher. Conversely, if there is lower demand or an oversupply of shares, it may lead to a lower GMP.
• 5. Investor Sentiment: The perception and sentiment of potential investors towards the company and its IPO can impact GMP. Positive buzz, media coverage, and investor confidence in the management team can create a favourable sentiment and drive GMP.

What are the advantages and disadvantages of investing in IPOs based on the GMP?

The advantages and disadvantages of investing in IPOs based on the GMP are as follows:

Advantages	Disadvantages
The GMP can help the investor to gauge the demand and popularity of the IPO, and the potential listing price and gain.	The GMP is not a reliable or accurate indicator of the listing price and gain, and may vary significantly from the actual market price.
The GMP can help the investor to decide whether to apply for the IPO, hold or sell the shares after allotment, or buy or sell the shares in the grey market.	The GMP can mislead the investor to invest in overvalued or hyped IPOs, or miss out on undervalued or profitable IPOs.
The GMP can help the investor to earn a quick profit by selling the shares in the grey market before the listing, or by buying the shares at a discount in the grey market after the listing.	The GMP can expose the investor to high risks and losses by trading in the illegal and unregulated grey market, or by investing in IPOs that may underperform or crash after the listing.
A high GMP indicates that the IPO is in high demand and has a strong potential to list at a premium over the issue price.	A high GMP may create unrealistic expectations and hype among the investors, and may lead to overvaluation and oversubscription of the IPO.
A high GMP may attract more investors to apply for the IPO, and increase the chances of getting allotment and listing gain.	A high GMP may also attract more speculators and short-term traders who may sell the shares as soon as they are listed, and cause volatility and downward pressure on the share price.
A high GMP may reflect the positive outlook and reputation of the company, the industry, and the market.	A high GMP may also be influenced by external factors such as market sentiment, media coverage, peer performance, and global events, which may change rapidly and affect the GMP and the listing price.

What is Kostak Rate?

The Kostak rate is the amount paid by one investor to the seller of an IPO application before its listing. Kostak rates react in the same way that the grey market does. One can buy and sell their entire IPO application on Kostak rates outside of the market to fix their profit. The investor receives 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 around ₹10000, the investor who purchased the application must receive the remaining ₹5000 profit. This is the most secure way to sell your application on the IPO grey market.

What is Subject to Sauda?

According to the Kostak rate, the Subject to Sauda on the application is the amount determined when investors receive an official allotment on their IPO application. If one buys or sells an IPO application on the subject of sauda, it means that one will receive the stated amount if the allotment is granted; otherwise,  sauda will be canceled. One cannot predict their profit in this case because it is determined by the allotted amount. If you get an allotment and sell the application for around ₹10000 and make a profit of around ₹15000 on the listing day, you should pay ₹5000 to the buyer.

How to Calculate Grey Market Premium?

The IPO GMP, also known as the grey market premium, is a price that trades in the grey market before the IPO listing process. The calculation is based on the company’s performance, demand in the grey market, and the chance of subscription. Assuming 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 an assumption, and the actual listing may differ from the grey market price.

Are Grey Market Stocks Safe?

It is dependent on the broker or trading person, and we believe it is not safe. Trading on the grey market is entirely at your own risk. There may be higher fluctuations, so proceed with caution. As we suggest, simply refer to the IPO GMP for listing gain purposes. Make wise decisions and only trade in the primary market after listing.

How Do I Buy / Sell IPO Application in Grey Market?

There are no official people or businesses involved with the grey market. Some brokers buy and sell IPO applications using Kostak Rates or Subject to Sauda Rates based on the IPO’s GMP. One should look for local brokers who act as intermediates between buyers and sellers and trade IPO applications on the grey market. Be aware of the current rates before purchasing or selling.

Significance of IPO GMP

The IPO Grey Market Premium indicates market sentiment and the expected worth of the IPO shares. It allows potential investors to assess the level of demand and the premium they may have to pay to buy shares during the IPO. However, it is important to remember that the GMP does not guarantee future performance and is subject to change.

IPO Grey Market Premium FAQs:

Disclaimer

Stock Market investments are subject to market risks. All the information provided on our IPO GMP Portal is for education purposes only. Kindly consult your Financial Advisor before taking any decision.