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.
May 25, 2022
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In the grey market, shares of LIC are trading with a premium of Rs 20 at Rs 969 per share.
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Rainbow Children's Medicare IPO opens on Wednesday. Read this before you apply.
Dec 17, 2021
This firm is one of the largest cash management companies in India by the reach.
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There seems to be no end to back-to-back IPO launches as two companies will come out with their IPOs next week.
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.
Aug 6, 2021
Retail investors showed great response to recently concluded IPOs. Another four offers open next week. Which one will you apply?
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.
May 11, 2022
Here are the five key points to consider before applying for the Delhivery IPO.
Apr 27, 2022
Here are the five key points to consider before applying for the Campus Activewear IPO.
Dec 24, 2021
Shares of this company made a solid debut on the bourses today.
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.
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.
Aug 27, 2021
Should you subscribe to the IPO of Vijaya Diagnostic Centre?
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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.