IPO GMP - Grey Market Premium LIVE | IPO GMP, Kostak Rates & Sauda Rates

Grey market premium ( IPO GMP ) can be defined as the difference in price between an IPO share in the grey market and the same share in the primary market. The unofficial market, which is also called Grey Market, is a trading place for stocks that are not usually traded on exchanges.

The IPO GMP reflects how the IPO might react on a listing day. For instance, if the company introduces an IPO or Rs.200 and the grey market premium is around Rs.50 then we can assume the IPO to list around 250 rupees on listing day. There is no reliability but in most cases, the GMP works properly and the IPO list around the given price.

An IPO grey market is one where a company’s shares are bid and offered by traders unofficially. This takes place before the shares are even issued by the company in an Initial Public Offering (IPO). Since this is an unofficial market, there are no rules and regulations. Market regulators like the Securities and Exchange Board of India (SEBI) are not involved in these transactions. The regulator doesn’t endorse this either.

 IPO GMP - Grey Market Premium Today ( Live Data)

IPO Name	IPO GMP	IPO Price	Listing Gain
LIC IPO	+-₹10	₹949	0%
Venus Pipes IPO	₹30	₹326	-
Prudent Corporate IPO	₹0	₹630	-
Delhivery IPO	₹0	₹487	-
Paradeep Phosphates IPO	₹-	₹42	-
Ethos Limited IPO	₹-	₹878	-
eMudhra IPO	₹-	₹256	-

IPO Kostak & Subject to Sauda Rates ( Live Data)

IPO Name	Kostak	Subject
LIC IPO	₹0	₹0
Venus Pipes IPO	₹400	₹800
Prudent Corporate IPO	₹250	₹500
Delhivery IPO	₹-	₹-
Paradeep Phosphates IPO	₹-	₹-
Ethos Limited IPO	₹-	₹-
eMudhra IPO	₹-	₹-

Note for the Investors:

1. You can see Grey Market Premium of IPOs in the above table. We update GMP daily 4 -5 times on the basis of demand and supply criteria.
2. We just try to show the demand for IPO in Grey market we do not accept buying or selling of shares or forms in Grey Market.
3. Don’t take buying and selling decisions by seeing GMP as it is highly volatile and changes every minute.
4. We are not advising any investor to buy or sell shares. Consult your financial advisor before taking any action. Here’s a quick read about what actually financial advisors do.

How To Calculate Grey Market Premium

The IPO Grey Market Premium ( IPO GMP ) is a term people use in the IPO market. It means the stock of the company that came up with the IPO was bought and sold outside the stock market. 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.

For instance, let’s assume the issue price for stock X is Rs 400.

If the grey market premium is Rs 600, it means that people are ready to buy the shares of company X for Rs 1000; (i.e. 400+600).

This is how a typical deal works out in the grey market.

Let’s understand this with another example. Karan is a trader in the stock market. He is allocated 200 shares at a certain issue price in an upcoming IPO.

Meanwhile, there are other investors, called ‘buyers’, who think that the value of the share is much higher than its issue price.

These buyers are ready to pay a ‘premium’ on the shares in the grey market. Dealers in the grey market contact investors like Karan, called ‘sellers’. They decide to make a deal to sell the shares at a certain price (premium) that is higher than the issue price.

If Karan likes the deal and he is unwilling to take a risk with the stock’s listing, he sells his shares and books the profit.

IPO GMP AKA Grey Market Premium FAQs:

1. What is the meaning of IPO?

   The full form of IPO is an initial public offering. It is the first time, the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately-owned companies looking to become publicly traded.

2. What is IPO Gray Market?

   A grey market (sometimes called a parallel market, but this can also mean other things; not to be confused with a black market or a grey economy) is the trade of a commodity through distribution channels that are legal but unintended by the original manufacturer.

3. What is IPO Grey Market Premium(GMP) Price?

   GMP is Grey market premium (or grey market price) is a premium amount in rupees at which IPO shares are being traded in Grey Market before they get listed in the stock exchange. Grey market premium can be positive or in negative based on the demand and supply of the stock. Grey Market Premiums are also attached with the words 'Buyer' or 'Seller'. They tell the price either at which buyers are willing to buy shares or the price at which sellers are willing to sell their IPO shares.

4. What is Kostak Price?

   Kostak (or price of application) is the premium amount in rupees at which IPO applications are being traded in IPO Grey Market. Usually 'Kostak' value is defined as the premium of a maximum lot retail application in an IPO. Kostak price is important mostly before the issue is closed for subscription and final bidding status is available to the IPO investors. Very few IPOs applications are traded after the final bidding status is available to the investors. 'Kostak' is especially for people who do not want to take risks with IPO allotment or listing gains.

5. What is Subject to Sauda Price?

   Subject to Sauda (or price of application subjected to sauda) is the amount in rupees at which IPO applications are being traded in IPO Grey Market subjected to the seller being allotted the lot. Usually 'Subjected to Sauda' value is slightly less than what can be the actual listing gain. if the 'Subject to Sauda' value is high you can expect a good listing gain as well. If you are not a risk-taker and would rather cash in the money, you can decide to sell your application in the grey market.