If You Don’t Know about IPO GMP (Grey Market Premium), and You are searching for What is Grey Market Premium in IPO

Also, we are going to understand what is Subject to Sauda (SS)?, Risk factors of Grey Market Premium, What is Kostak, and the meaning of Kostak, What is the relation between Grey market and Kostak, and How you can utilize grey market premium of any IPO Optimally? Read All carefully till the end.

What is Grey Market Premium in IPO?

GMP (Grey Market Premium) is a “Term” that is commonly used by people in IPO to estimate the price listing of an IPO, It is unofficial, But investors keep an eye on Grey Market Premium and continuously Tracking IPO. Grey Market runs from the Listing date of IPO to the Allotment date of IPO.

Grey Market Premium gives an idea about ​​how the IPO will react before the listing date with an estimated price. Suppose, A stock with an IPO price of 500 INR quoting at INR 50 Premium indicates that there is a possibility of the stock getting listed at around INR 550.

Latest IPO with GMP

IPO NameGMPKostakSubject
Nykaa IPO₹700₹800₹7000
Fino Payments Bank
SJS Enterprises₹15
Sigachi Enterprises₹190₹350₹12000
PolicyBazaar₹90₹300₹1500
PayTM₹120₹250
Sapphire Foods₹125
Latent View Analytics₹120
Skanray Technologies
Mobikwik
Ruchi Soya
Credit: IPO watch

Latest IPO detailed Analysis

Risk Factors of IPO GMP?

It is an unregulated market. It means there are no written agreements here. If the buyer and seller declined their ownership then you will gain loss and you can’t even sue the person.

There is no Reliability in the Grey Market Premium price. This GMP never ever trades live on the market. This information is only given by the Dealer hence, it’s unofficial.

Why People Trade-in Grey Market Premium?

Trading in the Grey Market Premium has very basic reasons to give the opportunity to retail investors and traders to purchase the shares before they are listed on trading platforms like Upstox and Zerodha. If they feel that the stock may be going to increase value in the future.

If the investor wants to exit from the IPO even before it is listed, The Grey Market Premium (GMP) gives an opportunity to way out from the petsguider IPO.

Trade-in GMP also allows people to buy IPO even they missed out on the application deadline or if they wanted to buy even more IPO than the IPO application.

What is Kostak Rate?

Kostak rate (or the price of the application) is the premium amount at which IPO applications are being traded in the Grey Market, In other words, It is a Profit Anyone can make by selling their IPO application even before Allotment or listing date of the IPO. It is especially useful for people who do not want to take risks with IPO allotment or listing gains to make some amount of Profits.

Final Words

So Guys in this post Trading in Grey Market Premium you will get the information about risk factors of GMP and why do people trade in GMP, what is a Grey market premium I hope you find our article helpful for you, Please do share and comment on your thoughts about Grey Market Premium (GMP) IPO.