IPO Grey Market Premium (GMP) | Equitymaster

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IPO Grey Market Premium (GMP)

GMP stands for grey market premium. It's a critical aspect of the IPO punting business that really gets people going on what's happening "outside" the legit markets.

The grey market is an unofficial market that exists in parallel with the official market. In the context of IPOs, the grey market is where unlisted IPO shares are traded.

It is here, at least in some portion, that the IPO punters get their kicks. And they get it by tracking what's called the IPO GMP.

The grey market premium or GMP is the amount, over and above the issue price, that traders are willing to pay or ask for to trade these yet to be listed IPO shares.

The IPO's GMP gives you an idea of the market's perception of the company and how it will perform on the listing day.

If you are looking forward to applying for an IPO, sure take a look to see what could happen on listing day.

But remember, the IPO's GMP shouldn't be the only factor influencing your decision on whether or not to hold or exit the stock.

If you are an investor, then we would say take the IPO GMP with a pinch of salt.

Since you're interested in IPO, check out the current IPOs and upcoming IPOs on our website.


eMudhra IPO: GMP and Other Important Details

May 25, 2022

What does the grey market premium (GMP) have in store for eMudhra before it gets listed?

Ethos IPO: 5 Things to Know

May 17, 2022

Key points to keep in mind before applying for the IPO of Ethos.

All You Need to Know About the LIC IPO's Lot Size, Face Value, Price Band, and More...

Apr 27, 2022

In the grey market, shares of LIC are trading with a premium of Rs 20 at Rs 969 per share.

GMP to Financial Performance: 5 Things to Know About Rainbow Children's Medicare IPO

Apr 25, 2022

Rainbow Children's Medicare IPO opens on Wednesday. Read this before you apply.

Here's What Should You Know Before Applying for CMS Info Systems IPO

Dec 17, 2021

This firm is one of the largest cash management companies in India by the reach.

Go Fashion's Public Offer Opens Next Week as IPO Craze Continues

Nov 13, 2021

There seems to be no end to back-to-back IPO launches as two companies will come out with their IPOs next week.

All You Need to Know About Sansera Engineering's IPO

Sep 8, 2021

This IPO is a pure OFS and the company is looking to raise Rs 12.8 bn at the upper price band of Rs 744.

CarTrade Tech IPO: Should You Subscribe to this Profitable Company?

Aug 6, 2021

Retail investors showed great response to recently concluded IPOs. Another four offers open next week. Which one will you apply?

5 Things to Know About Aether Industries IPO

May 24, 2022

One needs to be very choosy when it comes to chemical stocks. If they disappoint on growth, there can be significant de-rating.

Delhivery IPO: 5 Things to Know

May 11, 2022

Here are the five key points to consider before applying for the Delhivery IPO.

Campus Activewear's GMP Strengthens. 5 Key Details About the IPO

Apr 27, 2022

Here are the five key points to consider before applying for the Campus Activewear IPO.

This Defence Sector IPO has Impressed Investors. Lists at 47% Premium

Dec 24, 2021

Shares of this company made a solid debut on the bourses today.

Understanding Grey Market Premium and its Relevance in Current Scenario

Nov 24, 2021

Grey market premium shouldn't be the only factor influencing your decision on IPOs. We would suggest you take it with a pinch of salt.

All You Need to Know About Aditya Birla Sun Life AMC's Well-Timed IPO

Sep 25, 2021

The IPO is fully an OFS to sell a 13.5% stake. At its upper price band, the company is eyeing a valuation of Rs 205 bn.

Vijaya Diagnostic IPO Opens Next Week as IPO Mania Fizzles Out

Aug 27, 2021

Should you subscribe to the IPO of Vijaya Diagnostic Centre?

GR Infraprojects IPO to Hit the Market on 7 July. All You Need to Know

Jul 1, 2021

GR Infraprojects' IPO will be an offer for sale of up to 11.5 m shares. There will not be any fresh issue of shares.


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