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IPO Grey Market Premium (GMP)

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.

Tata Technologies IPO
Nov 23, 2023
With its proven track-record and strong lineage, will Tata Technologies tread on a similar path like Tata Elxsi and KPIT Technologies?

Our Take on the Tata Technologies IPO: The Good, the Bad and the Ugly
Nov 15, 2023
The Tata Technologies OFS is set to commence next week on 22 November 2023. Here's everything you need to know...

Tata Technologies IPO: 5 Key Takeaways from the Addendum
Oct 4, 2023
Tata Technologies gears up for IPO, files addendum to DRHP. Here's everything you need to know about this latest move.

Concord Biotech IPO: 5 Things to Know
Aug 2, 2023
From grey market premium to price band, here's everything you need to know about the upcoming IPO.

PKH Ventures IPO: 5 Things to Know
Jun 27, 2023
This civil construction company is going live with its IPO this Friday. Should you apply?

HMA Agro Industries IPO: 5 Things to Know
Jun 9, 2023
All you need to know about the upcoming IPO of HMA Agro Industries.

Nexus Select Trust REIT IPO: 5 Things to Know
May 2, 2023
India's fourth REIT is about to get listed on the bourses soon. Have a look at the company's financials, GMP and more.

Global Surfaces IPO: 5 Things to Know
Mar 3, 2023
The Indian primary market is buzzing with activity. Next week, a quartz company is coming out with its IPO. Check out more details inside.

KFin Technologies IPO: 5 Things to Know
Dec 19, 2022
KFin Technologies - a technology driven financial service platform - has come out with its IPO. Find out five important details about the IPO.

Sula Vineyards IPO: 5 Things to Know
Dec 9, 2022
As a slew of IPOs hit the market, the biggest wine producer in India plans to make its big debut. Here are key details about the IPO.

Tata Technologies IPO: Should You Apply?
Nov 16, 2023
With its proven track-record and strong lineage, will Tata Technologies tread on a similar path like Tata Elxsi and KPIT Technologies?

Tata Technologies vs Tata Elxsi: How these Tata Group Stocks Stack up Against Each Other
Oct 11, 2023
The upcoming IPO of Tata Technologies is one of the most anticipated IPOs of the year, and is being compared to Tata Elxsi, another Tata Group company that provides somewhat similar services.

Balaji Speciality Chemicals IPO: 5 Things to Know
Aug 9, 2023
From grey market premium to issue size, here's everything you need to know about the upcoming IPO of this specialty chemical player.

Senco Gold IPO: 5 Things to Know
Jul 1, 2023
This jewellery company is coming out with its IPO next week. Should you apply?

Cyient DLM IPO: 5 Things to Know About this Electronics Manufacturing Company
Jun 22, 2023
From grey market premium to price band, here's everything you need to know about the upcoming IPO of Cyient DLM.

IKIO Lighting IPO: 5 Things to Know About this Electronics Manufacturing Company
Jun 1, 2023
IKIO Lighting, a reputed LED manufacturer, is coming out with its IPO next week. Should you apply?

Udayshivakumar Infra IPO: 5 Things to Know
Mar 17, 2023
This road construction company is coming out with its IPO next week. Here are 5 key details.

Radiant Cash Management Services IPO: 5 Things to Know
Dec 26, 2022
From GMP to price band, here's everything you need to know about Radiant Cash Management IPO.

Landmark Cars IPO: 5 Things to Know
Dec 14, 2022
The Indian retailer of cars like Mercedes-Benz, Honda etc, has come out with an IPO. Read all the important details here.

Droneacharya Aerial Innovations IPO: 5 Things to Know
Dec 7, 2022
Drones have remained the talk of the town. Seeing this as an opportunity, this drone company is coming out with its IPO next week.

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FAQs

What is an IPO Price Band?

IPO Price Band is the price range within which investors can bid for the shares. The minimum price is called the floor price and the maximum price is called the cap price.

In case the company revises the price band, the offer period gets extended for at least three additional working days.

Any revision in the price band and the revised offer period, if applicable, is shared by notification to the stock exchanges by issuing a press release and on the websites of the book running lead managers.

What is GMP?

GMP stands for grey market premium. It is the amount, over and above the issue price, that traders are willing to pay or ask for to trade IPO shares. The GMP can tell you how an IPO will perform on its listing day.

If you are applying for an IPO, take a look to see what could happen on listing day. But remember 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 GMP with a pinch of salt. A factor as volatile as GMP can't be a deciding factor.

Therefore, you should never apply for an IPO just because it commands a good GMP. You should apply for an IPO because you believe in the company's earning potential. Hence more weightage should be given to the fundamentals of the company.

What is a lot size?

A lot size is the minimum number of shares that an investor needs to bid for. It is different for each IPO and is fixed by the company.

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IPO Grey Market Premium (GMP)

Tata Technologies IPONov 23, 2023With its proven track-record and strong lineage, will Tata Technologies tread on a similar path like Tata Elxsi and KPIT Technologies?

Our Take on the Tata Technologies IPO: The Good, the Bad and the UglyNov 15, 2023The Tata Technologies OFS is set to commence next week on 22 November 2023. Here's everything you need to know...

Tata Technologies IPO: 5 Key Takeaways from the AddendumOct 4, 2023Tata Technologies gears up for IPO, files addendum to DRHP. Here's everything you need to know about this latest move.

Concord Biotech IPO: 5 Things to KnowAug 2, 2023From grey market premium to price band, here's everything you need to know about the upcoming IPO.

PKH Ventures IPO: 5 Things to KnowJun 27, 2023This civil construction company is going live with its IPO this Friday. Should you apply?

HMA Agro Industries IPO: 5 Things to KnowJun 9, 2023All you need to know about the upcoming IPO of HMA Agro Industries.

Nexus Select Trust REIT IPO: 5 Things to KnowMay 2, 2023India's fourth REIT is about to get listed on the bourses soon. Have a look at the company's financials, GMP and more.

Global Surfaces IPO: 5 Things to KnowMar 3, 2023The Indian primary market is buzzing with activity. Next week, a quartz company is coming out with its IPO. Check out more details inside.

KFin Technologies IPO: 5 Things to KnowDec 19, 2022KFin Technologies - a technology driven financial service platform - has come out with its IPO. Find out five important details about the IPO.

Sula Vineyards IPO: 5 Things to KnowDec 9, 2022As a slew of IPOs hit the market, the biggest wine producer in India plans to make its big debut. Here are key details about the IPO.

Tata Technologies IPO: Should You Apply?Nov 16, 2023With its proven track-record and strong lineage, will Tata Technologies tread on a similar path like Tata Elxsi and KPIT Technologies?

Tata Technologies vs Tata Elxsi: How these Tata Group Stocks Stack up Against Each OtherOct 11, 2023The upcoming IPO of Tata Technologies is one of the most anticipated IPOs of the year, and is being compared to Tata Elxsi, another Tata Group company that provides somewhat similar services.

Balaji Speciality Chemicals IPO: 5 Things to KnowAug 9, 2023From grey market premium to issue size, here's everything you need to know about the upcoming IPO of this specialty chemical player.

Senco Gold IPO: 5 Things to KnowJul 1, 2023This jewellery company is coming out with its IPO next week. Should you apply?

Cyient DLM IPO: 5 Things to Know About this Electronics Manufacturing CompanyJun 22, 2023From grey market premium to price band, here's everything you need to know about the upcoming IPO of Cyient DLM.

IKIO Lighting IPO: 5 Things to Know About this Electronics Manufacturing CompanyJun 1, 2023IKIO Lighting, a reputed LED manufacturer, is coming out with its IPO next week. Should you apply?

Udayshivakumar Infra IPO: 5 Things to KnowMar 17, 2023This road construction company is coming out with its IPO next week. Here are 5 key details.

Radiant Cash Management Services IPO: 5 Things to KnowDec 26, 2022From GMP to price band, here's everything you need to know about Radiant Cash Management IPO.

Landmark Cars IPO: 5 Things to KnowDec 14, 2022The Indian retailer of cars like Mercedes-Benz, Honda etc, has come out with an IPO. Read all the important details here.

Droneacharya Aerial Innovations IPO: 5 Things to KnowDec 7, 2022Drones have remained the talk of the town. Seeing this as an opportunity, this drone company is coming out with its IPO next week.