The IPO Grey Market Premium (GMP) represents the difference between the price at which shares of an Initial Public Offering (IPO) are traded in the unofficial grey market and the issue price set by the company. It serves as an early indicator of investor sentiment toward the IPO. In this blog, we will delve into the details of GMP IPO, explaining what it is, how it’s calculated, why it matters, and more.
What is IPO Grey Market Premium (GMP)?
The GMP IPO refers to the premium at which shares may get traded in the grey market before the IPO officially hits the stock exchanges. Grey market trading occurs outside the primary or secondary market when a company launches its IPO. It provides an early indication of investor sentiment toward the IPO.
Detailed Explanation
- What is a GMP IPO?
- The GMP IPO is the difference between the grey market trading price of an IPO share and its official issue price.
- It occurs in an unofficial, over-the-counter market where shares are traded before they are listed on the stock exchange.
- When Does Grey Market Trading Happen?
- Grey market trading starts unofficially after the IPO date and price band announcements.
- It happens before the IPO shares are officially listed on the stock exchanges.
- Where Does Grey Market Trading Occur?
- The grey market operates outside the formal exchanges, over-the-counter (OTC).
- Traders buy and sell IPO shares directly in this unregulated market.
- Who Uses GMP IPO?
- IPO investors closely monitor GMP IPO before making investment decisions.
- GMP can vary based on market conditions, demand, and subscription numbers.
Latest Update on GMP IPO Today
Check the latest GMP for upcoming IPOs to stay informed about market sentiment. Remember, while GMP IPO provides insights, it’s essential to evaluate IPOs based on their fundamentals. Happy investing!
Detailed Explanation
- Where to Find the Latest GMP IPO?
- Financial news websites, IPO analysis portals, and investment forums regularly update GMP IPO data.
- Monitoring these sources helps investors stay informed about market trends and sentiment.
- How to Interpret GMP IPO Updates?
- Use the latest GMP IPO data as a gauge of current investor sentiment.
- Combine it with other analytical tools and research to form a well-rounded investment strategy.
| IPO Name | Date | Type | IPO GMP | IPO Price | Gain | Kostak | Subject |
| Allied Blenders | 24-26 Jun | Mainline | ₹– | ₹- | -% | ₹– | ₹– |
| DEE Piping Systems | 19-21 June | Mainline | ₹85 | ₹203 | 42% | ₹– | ₹– |
| Akme Fintrade | 19-21 June | Mainline | ₹30 | ₹120 | 25% | ₹– | ₹– |
| Stanley Lifestyles | 21-25 June | Mainline | ₹120 | ₹369 | 33% | ₹– | ₹– |
| United Cotfab | 13-19 Jun | BSE SME | ₹20 | ₹70 | 29% | ₹– | ₹25,000 |
| GPES Solar | 14-19 Jun | NSE SME | ₹165 | ₹94 | 176% | ₹– | ₹170,000 |
| GEM Enviro | 19-21 Jun | BSE SME | ₹60 | ₹75 | 80% | ₹– | ₹80,000 |
| Durlax Top Surface | 19-21 Jun | NSE SME | ₹25 | ₹68 | 37% | ₹– | ₹35,000 |
| Falcon Technoprojects | 19-21 Jun | NSE SME | ₹8 | ₹92 | 9% | ₹– | ₹5,000 |
| Dindigul- EnNutrica | 20-24 Jun | BSE SME | ₹64 | ₹54 | 119% | ₹– | ₹100,000 |
| Winny Immigration | 20-24 Jun | NSE SME | ₹45 | ₹140 | 32% | ₹– | ₹30,000 |
| Medicamen Organics | 21-25 Jun | NSE SME | ₹60 | ₹34 | 176% | ₹– | ₹170,000 |
| Shivalic Power Control | 24-26 Jun | NSE SME | ₹170 | ₹100 | 170% | ₹– | ₹150,000 |
| Sylvan Plyboard | 24-26 Jun | NSE SME | ₹– | ₹55 | -% | ₹– | ₹– |
| Mason Infratech | 24-26 Jun | NSE SME | ₹– | ₹64 | -% | ₹– | ₹– |
| The Money Fair | 25-27 Jun | NSE SME | ₹15 | ₹- | -% | ₹– | ₹– |
| Divine Power | 25-27 Jun | NSE SME | ₹– | ₹- | -% | ₹– | ₹– |
| Petro Carbon | 25-27 Jun | NSE SME | ₹– | ₹171 | -% | ₹– | ₹– |
How is IPO Grey Market Premium (GMP) Calculated?
GMP IPO is calculated as the difference between the grey market trading price and the IPO issue price. Investors use it as a gauge to assess demand and potential listing gains.
Detailed Explanation
- What is the Formula for GMP IPO Calculation?
- GMP IPO = Grey Market Trading Price – IPO Issue Price
- Why Do Investors Use GMP IPO?
- Investors use GMP IPO to predict potential gains on listing day.
- It acts as a preliminary indicator of market demand and investor sentiment.
Why Does IPO Grey Market Premium (GMP) Matter?
High GMP IPO suggests strong investor interest and anticipation of listing gains. Conversely, low or negative GMP IPO may indicate cautious sentiment or lack of demand.
Detailed Explanation
- What Does High GMP IPO Indicate?
- High GMP IPO reflects robust demand and positive sentiment among investors.
- It often leads to substantial listing gains on the IPO’s debut day.
- What Does Low or Negative GMP IPO Indicate?
- Low or negative GMP IPO suggests weak demand and investor caution.
- It may result in poor listing performance or below-issue price trading.
How Can Investors Use GMP IPO?
Consider GMP IPO along with other factors (company fundamentals, industry trends) before subscribing to an IPO. Don’t rely solely on GMP IPO; make informed decisions.
Detailed Explanation
- What Should Investors Consider Alongside GMP IPO?
- Company fundamentals: Financial health, business model, and growth prospects.
- Industry trends: Market position, competition, and sector performance.
- Why Shouldn’t Investors Rely Solely on GMP IPO?
- GMP IPO provides an early sentiment indicator but is not a definitive measure of an IPO’s success.
- Comprehensive research and analysis are essential for informed investment decisions.
Listed IPO Grey Market Premium of IPO 2022 | 2023 | 2024
| IPO Name | Price | IPO GMP | Listed |
| 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 |
| Elin Electronics | ₹247 | Disc | ₹244 |
| KFin Technologies | ₹366 | Disc | ₹267 |
| Abans Holdings | ₹270 | Disc | ₹273 |
| Landmark Cars | ₹506 | Disc | ₹471 |
| Sula Vineyards | ₹357 | Disc | ₹361 |
| Uniparts India | ₹577 | ₹40 | ₹575 |
| Dharmaj Crop Guard | ₹237 | ₹55 | ₹266 |
| Keystone Realtors | ₹541 | ₹5 | ₹555 |
| Inox Green Energy | ₹65 | Disc | ₹60 |
| Kaynes Technology | ₹587 | ₹220 | ₹778 |
| Five Star Business Finance | ₹474 | Disc | ₹468 |
| Archeran Chemicals | ₹407 | ₹120 | ₹450 |
| Global Health | ₹336 | ₹20 | ₹401 |
| Bikaji Foods | ₹300 | ₹25 | ₹322 |
| Fusion Micro Finance | ₹368 | ₹5 | ₹360 |
| DCX Systems | ₹207 | ₹85 | ₹207 |
| Tracxn | ₹80 | –₹4 | ₹84 |
| Electronics Mart | ₹59 | ₹30 | ₹90 |
| Harsha Engineers | ₹330 | ₹130 | ₹450 |
| Tamilnad Mercantile Bank | ₹510 | ₹15 | ₹495 |
| Dreamfolks Services | ₹326 | ₹120 | ₹508 |
| Syrma SGS | ₹220 | ₹55 | ₹260 |
| Aether Industries | ₹642 | ₹15 | ₹704 |
| eMudhra IPO | ₹256 | +-₹10 | ₹270 |
| Ethos IPO | ₹878 | +-₹10 | ₹825 |
| Paradeep Phosphates | ₹42 | ₹0.50 | ₹44 |
| Venus Pipes | ₹326 | ₹30 | ₹337 |
| Delhivery | ₹487 | +-₹10 | ₹495 |
| Prudent Corporate | ₹630 | +-₹10 | ₹650 |
| LIC IPO | ₹949 | +-₹12 | ₹872 |
| Rainbow Hospital | ₹542 | ₹10 | ₹510 |
| Campus Activewear | ₹292 | ₹50 | ₹360 |
| Hariom Pipe | ₹153 | ₹15 | ₹220 |
| Veranda Learning | ₹137 | ₹15 | ₹157 |
| Uma Exports | ₹68 | ₹- | ₹76 |
| Ruchi Soya | ₹650 | ₹60 | ₹855 |
| Vedant Fashions | ₹866 | ₹10 | ₹935 |
| Adani Wilmar | ₹230 | ₹30 | ₹227 |
| AGS Transact | ₹175 | ₹5 | ₹175 |
| CMS Info Systems | ₹216 | ₹5 | ₹220 |
| Supriya Lifescience | ₹274 | ₹130 | ₹421 |
| HP Adhesives | ₹274 | ₹90 | ₹315 |
| Data Patterns | ₹585 | ₹300 | ₹856 |
| Medplus | ₹796 | ₹180 | ₹1040 |
| Metro Brands | ₹500 | ₹- | ₹437 |
| MapmyIndia | ₹1022 | ₹700 | ₹1565 |
| Shriram Properties | ₹118 | ₹- | ₹90 |
| RateGain | ₹425 | ₹35 | ₹360 |
| Anand Rathi Wealth | ₹550 | ₹50 | ₹600 |
| Tega Industries | ₹453 | ₹300 | ₹760 |
| Star Health | ₹900 | -₹50 | ₹845 |
| Go Fashion | ₹690 | ₹450 | ₹1310 |
| Tarsons Products | ₹662 | ₹180 | ₹682 |
| LatentView Analytics | ₹197 | ₹300 | ₹512 |
| Sapphire Foods | ₹1150 | ₹150 | ₹1350 |
| Paytm | ₹2150 | ₹30 | ₹1950 |
| Sigachi Industries | ₹163 | ₹230 | ₹570 |
| SJS Enterprises | ₹542 | ₹60 | ₹542 |
| Policybazaar | ₹980 | ₹150 | ₹1150 |
| Nykaa | ₹1125 | ₹750 | ₹2018 |
| Aditya Birla AMC | ₹712 | ₹25 | ₹715 |
| Paras Defence | ₹175 | ₹220 | ₹469 |
| Sansera Engineering | ₹744 | ₹65 | ₹811 |
| Vijaya Diagnostic | ₹531 | ₹0 | ₹540 |
| Ami Organics | ₹610 | ₹150 | ₹910 |
| Aptus Value Housing | ₹353 | ₹0 | ₹333 |
| Chemplast Sanmar | ₹541 | ₹0 | ₹550 |
| Nuvoco Vistas | ₹570 | ₹0 | ₹485 |
| CarTrade | ₹1618 | ₹150 | ₹1505 |
| Windlas Biotech | ₹460 | ₹85 | ₹437 |
| Devyani International | ₹90 | ₹55 | ₹141 |
| Exxaro Tiles | ₹120 | ₹15 | ₹126 |
| Krsnaa Diagnostics | ₹954 | ₹320 | ₹1005 |
| Rolex Rings | ₹900 | ₹450 | ₹1250 |
| Glenmark Life Sciences | ₹720 | ₹90 | ₹750 |
| Tatva Chintan Pharma | ₹1083 | ₹1100 | ₹2111 |
| Zomato | ₹76 | ₹25 | ₹126 |
| GR Infraprojects | ₹837 | ₹560 | ₹1716 |
| Clean Science | ₹900 | ₹620 | ₹1784 |
| India Pesticides | ₹296 | ₹65 | ₹350 |
| Dodla Dairy | ₹428 | ₹95 | ₹550 |
| KIMS Hospital | ₹825 | ₹110 | ₹1009 |
| Shyam Metalics | ₹306 | ₹135 | ₹380 |
| Sona BLW Precision | ₹291 | ₹5 | ₹301 |
| Lodha Developers | ₹486 | ₹0 | ₹436 |
| Barbeque Nation | ₹500 | ₹0 | ₹482 |
| Suryoday Small Bank | ₹305 | ₹0 | ₹293 |
| Kalyan Jewellers | ₹87 | ₹0 | ₹74 |
| Anupam Rasayan | ₹555 | ₹70 | ₹520 |
| Laxmi Organic | ₹130 | ₹45 | ₹155 |
| Craftsman Automation | ₹1490 | ₹32 | ₹1359 |
| Nazara Technologies | ₹1101 | ₹700 | ₹1990 |
| Easy Trip Planners | ₹187 | ₹140 | ₹212 |
| MTAR Technologies | ₹575 | ₹500 | ₹1050 |
| Heranba Industries | ₹627 | ₹270 | ₹900 |
| Nureca Limited | ₹400 | ₹80 | ₹615 |
| Brookfield India REIT | ₹275 | ₹0 | ₹281 |
| Stove Kraft | ₹385 | ₹65 | ₹298 |
| Home First Finance | ₹518 | ₹150 | ₹618 |
| Indigo Paints | ₹1490 | ₹900 | ₹2607 |
| RailTel | ₹94 | ₹15 | ₹109 |
| IRFC | ₹26 | ₹0.50 | ₹25 |
| Antony Waste | ₹315 | ₹105 | ₹436 |
Conclusion
The IPO Grey Market Premium (GMP) is a valuable tool for investors to gauge early market sentiment and potential listing gains. However, it’s crucial to consider GMP IPO along with comprehensive research on company fundamentals and industry trends before making investment decisions. Stay informed, and happy investing!
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