IPO GMP (IPO Grey Market Premium) indicates the price grey market operators are willing to pay for shares of a given IPO before listing. GREY market (also called gray market) is an informal setup used by traders to buy and sell shares and is not recognized by stock exchanges.
Since upcoming IPO GMP tells us about the premium someone is willing to pay for the corresponding IPO, it is often used to forecast the listing price of public offers. GMP of several IPOs has correctly predicted eventual listing prices, although it is not always accurate. Lately, SME segment has started witnessing interest with positive SME IPO GMP figures. However, grey market activity and volumes have taken a hit recently in light of the massive declines in secondary markets. With concerns emerging about the longevity of the rally, subscription levels have come down substantially, effectively mirroring investors’ sentiments.
Latest IPO GMP Today (31 May, Prices in INR)
|Mainboard IPO||Price Band||IPO GMP||Kostak||Subject to Sauda|
(6 – 8 Jun)
|270 – 285||–||–||–|
Latest SME IPO GMP Today (31 May, Prices in INR)
|SME IPO||Price Band||SME IPO GMP||Kostak||Subject to Sauda|
(2 – 7 Jun)
(31 May – 5 Jun)
|52 – 54||9||–||12,000|
(31 May – 2 Jun)
|132 – 135||10||–||10,000|
|CFF Fluid Control|
(30 May – 2 Jun)
(29 – 31 May)
|80 – 82||58||–||55,000|
(24 – 26 May)
(24 – 26 May)
|85 – 90||60||–||70,000|
(23 – 25 May)
|121 – 128||70||–||62,000|
(22 – 25 May)
|62 – 65||50||–||80,000|
An IPO gray market transaction involves the unofficial agreement between an IPO investor and a stock broker which allows investors to lock profits before the stock lists. Under this system, shares allotted to IPO applications are sold by brokers without transferring the shares to their accounts. Since this is an unwritten accord between two parties, it entirely depends on the trust between the investor and broker.
Important points about IPO GMP and grey market:
- IPO grey market movements may change very quickly and rates may be volatile. It is risky to base an investment decision on gray market IPO rates alone. Please refer to our research and analysis section for more details.
- Research has shown that retail investors are strongly influenced by market sentiment and as a result, are prone to overreaction, especially when it comes to IPO investing. Place your bets wisely!
- IPO GMP rates are provided as sourced from market intelligence. Please note these upcoming IPO GMP rates may be different for you depending on geographies, markets, and dates.
- We don’t trade in the grey market nor do we facilitate buying or selling of IPO forms.
What is IPO GMP (IPO Grey Market Premium)?
IPO GMP is the per share premium an IPO commands in the grey market before the listing of shares. In simple terms, this IPO premium indicates the price gray market buyers are willing to pay over and above the allotment price asked by the company. As such, GMP indicates that the offer is likely to list at higher prices and reward successful applicants. On the other hand, an IPO grey market discount indicates that the offer is likely to list at lower rates.
The IPO grey market is an informal setup and it operates even before the IPO start date and goes on till the listing date. The IPO premium fluctuates daily on the basis of IPO demand and in this regard, there is little difference between the primary and secondary markets. It is observed that GMP goes up with wider markets and similarly, comes down in subdued conditions. If you feel the need to keep an IPO watch, look no further than IPO Central.
What is Kostak rate?
Kostak rate is the amount an investor gets by selling his/her IPO application in the grey market. This is the amount an investor stands to get, irrespective of IPO allotment status. As an example, a kostak rate of INR300 indicates that an investor selling his application will receive this amount even if there is no allotment and even if the stock is listed at a discount to the allotment price.
What is Subject to Sauda?
‘Subject to’ is another term frequently used in the grey market to denote a sauda for buying a firm allotment application. In other words, this is the amount buyers are ready to pay for an application that has been allotted shares. Naturally, this amount is much bigger than Kostak. A seller in this case gets this amount even if the stock lists at lower rates than the allotment price. The risk of a discounted listing is borne by the buyer.
In case of no allotment, the sauda stands canceled. As one can see, there is a trade-off between kostak and Subject to Sauda trades and while investors can make big money in the second one, s/he gets nothing in case of no allotment. In contrast, s/he can lock a small profit by selling the application at kostak rates.
Income tax implications of grey market trades
Since the grey market is an informal market, all profits will be in the name of the IPO applicant who sold his/her application. IPO grey market trades are mostly settled in cash which means that actual trades happen in the applicant’s account. This directly puts the tax liability on the applicant.
IPO Central is the best IPO research, recommendation, and discussion platform for retail and HNI investors. Investors can also make use of our service for gaining insight into brokerage house reports and analysts’ minds. Get a detailed examination, grey market premium, and a study of all upcoming IPOs in India.
Participate in lively IPO discussions and benefit from the perspective of other readers. Here is a list of the current, forthcoming, and recently closed mainboard and SME IPOs in India. Click on the respective IPO and scroll down to the comments section.
If you spot a new IPO and wish to nudge us about it, just drop us a comment below the text. Alternatively, you can write to us at admin at ipocentral.in. Here are some more resources for you:
- Best Listing Gains IPOs
- IPO Subscription Status
- Common IPO Mistakes and How to Avoid Them
- All-time Largest IPOs in India at a Glance
- IPO FAQs (Frequently Asked Questions)
- Best Monopoly Stocks in India
- Best Virtual Trading Websites in India
- White Label ATM – Meaning, Example, Regulations, Operators
- Brown Label ATM – Meaning, Example, Operators
- Best Indicators for Options Trading
- TReDS Portal – Meaning, Full Form and Everything You Need to Know
Alternatively, you can check out our dedicated sections on IPO News, SEBI approval status, IPO Review, and Buybacks. If you are new to IPOs, you might want to go through our resources section which contains a lot of information about the best practices to follow when it comes to primary markets.
What does kostak column mean in your article
“Kostak rate is the amount an investor gets by selling his/her IPO application in grey market. This is the amount an investor stands to gain, irrespective of allotment status.”
It is mentioned in the article! Please see below the table. In short, you will need a broker who will buy your application and sell it to a wealthy HNI.
I am looking for any such broker in Mumbai. If someone could provide contact details.
SS Consultanat Contact -9870819138
Yes you can call on +918799935458
They will help you regarding PRE – IPO
Explian about HNI
High Net-worth Individual/Investor
What about SME like Share India Securities? Any one has an idea what its GMP is please?
Grey market premium
what is opened mehai tech. and gmp?
Could someone provide such broker in Mumbai
Yes you can Call on +91 87999 35458
awinwealth.in best broker and trust worthy✌️
They will help you with PRE – IPO and grey market
Kindly suggest me broker in Kota (rajasthan) for selling my ipo application. Or any other way?
when kostak application is sold to broker how it is settled? Is it off market or applicant sells on exchange and then settlement takes place.
when kostak application is sold to broker ,how settlement takes place in case of allotment.Does it off market or applicant sells the allotted share in exchange and then settled? If that be the case who bear the tax burden?
Why IEX premium is shown to min AMT as it is going to be in the 100/150 range as per other websites
This turned out to be the actual price! Accurate grey market price here.
kindly suggest me grey market broker in jaipur.
Kindly suggest me gray market broker in Jaipur.
You can call on +91 87999 35458
Tum log duniya ke pichhe rah jaoge.kyuki ipo ka gmp apne date to date update nai kar rahe ho.apse investor ka vishvas tutega.
IPO gray market in mumbai?
Kindly suggest me broker in maharashtra (ratnagiri) for selling my ipo application. Or any other way?
Kindly suggest me who buys the application..
You will need to get in touch with a broker in your city. Don’t trust anyone promising to buy your application.
Kindly suggest me who buys the application. My broker told me it is not possible
It is possible……
Want to know contact – +91 87999 35458
Good listing for Amber but nowhere close to the fake GMP many websites were claiming. IPOcentral was the closet to the actual listing price.
I hope you are having a good day. I am Raju Modhavadiya, a Retail Investor from Rajkot. I have done 2 application (600 shares x 2) for MMP Industries SME IPO with cut off price from my and my wife’s demat accounts.
Now there were 1496250 shares for retail investor segment. For this segment, 726000 shares bid came with cut off price (i.e. Rs.188/-) and 1042200 shares bid came with price bids (i.e. Rs.186/- & Rs.187/-).
According to my knowledge, if there is not 100% subscription with cut off price, all cut off price bidders should get allocation of shares and in this case, for MMP industries SME IPO, retail segment quota was not fully subscribed with cut off price according to information available from NSE website. Still there was no allocation of shares in both accounts.
Please clarify on this.
Raju A Modhavadiya
I hope you are having a good day. I am vaishu patel a marketing scenario from ahmedabad.
i m also interested in this website.so this website can also be usefull. i also like that.
What is gmp par drugs ipo
I interested in site
What shall be the grey market premium or Sudarshan Pharma ipo
which ipo is the best and you want to know so call me ashish and mobile number 7879691011
An IPO grey market is an OTC (over-the-counter) market where stocks and IPO applications are bought and sold even before they are available on stock exchanges. IPO grey market is based on utmost trust but is neither backed by stockbrokers nor SEBI.
DEAR MEMBERS ,,,,,,,…,,.,,..,,.
IRCTC IPO, REAL TIME GMP, BROKER INFO, ALLOCATION, REVIEWS ETC. JOIN OUR WHATS % APP GROUP, JUST SEND YOUR NAME AND CITY ON OUR WHATS% APP NUMBER 9122 – 182 – 978
KINDLY DON’T CALL / DON’T SEND TEXT MSG, ONLY WHATS % APP ME TO ADD YOU WITH NAME AND CITY
NOW I AM MUCH ACTIVE ON WHATS % APP THAN ON WEB. JOIN FAST
Great website. Gives correct information and suggestions about buying ipos.
kindly tell me some broker whom i can contact to sell my application, as a lot of new IPOs are coming…
I want to know how can i buy ipo application from anyone(broker/person) in kolkata
@Pratik ji Call me 7686030148
I want to sell. If interested call me on 8910953248.
Pratik , contact me
Gwalior mai koi broker hai to mujhe bataye
Gwalior.mp.mai koi broker ho to contact me my WhatsApp no.9893025337
Any grey market application buyer in Pune
Contact +91 87999 35458
They will help you get proper info on PRE – IPO
I want to sell my application …so how can i sell it. I’m from indore
Please contact 8989562475
I want to sell my application for mrs. Bector I’m from indore so how can i sell it
Hi i want to sell mr bector ipo application. Any one want to buy it. ? Contact me 7715910672
Contact +91 87999 35458
They will guide you in PRE – IPO✌️
I am interested in all news.
Thanks & Regards.
Please update about GMP of Anupam Rasayan IPO.
For common people which is the category HNI,QIB,RETAIL
I like your blog. Its one of the awesome blogs online
Hi, I want to know grey market broker in Bangalore. Please let me know on 9620201072. Thank you
Price band of ami is correct? ????
I’m not aware and may nobody know about how the system chooses to application to allot shares?
I have a suggestion in which not a single lacuna could be.
I think the allotment is based on the PAN alphabets and numbers, how? wait.
3 Alpha & 4 Number is random on the PAN no. than if SEBI at the time of allotment announce that who’s pan has (third alpha as K) example, that person won the allotment and that PAN No’s is not enough or more than use (any two or three alpha/number) like second H,Q,R,I,E,S,Z with third K.
This system could be helpful to stop the ambiguity in the allotment process and not required to send the details as who’s allotted or who’s not.
Any body want to buy Share Before IPO
Contact- +91 87999 35458.
VEDANT IS A FLOP N FAILED IPO DUE TO UNREALISTIC N UNJUSTIFIED HIGH PREMIUM AT 824-866 PRICE BAND. HOW SEBI, LEAD MANAGERS N ANCHOR INVESTORS CAN ALLOW SUCH MIND BOGGLING UNREASONABLE SKY HIGH PREMIUM ON RE. 1 SHARE ? IS IT BETTER N BIGGER THAN ITC ? LOOK AT PAYTM IPO WHICH IS CRASHING EVERY DAY N NOW BELOW 90 AGAINST ISSUE PRICE OF 2150/- IN A SHORT PERIOD. IT IS CLEAR THAT PAYTM SHARE WAS NOT WORTH 2150 AND NOT EVEN WORTH 900/- BUT SEBI BLINDLY GIVEN APPROVAL TO SALE SAHRE AT 2150/- WITHOUT ANY TENABLE & SOUND FINANCIAL THAT TOO WHEN COMPANY IS ALWAYS MAKING LOSSES. PLS STOP SUCH UNETHICAL PRACTISES TO LOOT RETAIL N BONAFIDE INVESTORS . SUCH PRACTISES WILL ONLY SPOIL MARKET SENTIMENTS AND GROWTH OF CAPITAL MARKETS
Interesting article. I’m curious to know what the GMP premium for an upcoming IPO will be.
Do you have the GMP of already listed companies
Hi Rohit, not sure what you mean. There is no GMP for listed companies.