IPO GMP, Latest IPO Grey Market Premium & Kostak Rates

The grey market premium, also known as IPO GMP, is a metric derived from the demand for a company’s initial public offering (IPO). The grey market emerges informally in the unregulated market following the IPO date and the disclosure of the price band. IPO investors consistently consider the Upcoming IPO GMP (Grey Market Premium) prior to making investments in IPOs. However, it is important to note that this premium may fluctuate depending on market conditions, demand, and subscription numbers.

Latest Initial Public Offering (IPO) Grey Market Premium (GMP) Today

Examine the most recent study of the Initial Public Offering (IPO) and the projected grey market rates of the upcoming IPO, together with the anticipated gains upon listing, as provided below as per the investorgain:

IPO Name	Date	Type	IPO GMP	IPO Price	Gain	Kostak	Subject
Kronox Lab Sciences	3-5 June	Mainline	₹80	₹136	59%	₹–	₹–
Beacon Trusteeship	28-30 May	NSE SME	₹70	₹60	117%	₹–	₹110,000
Ztech India	29-31 May	NSE SME	₹50	₹110	45%	₹–	₹40,000
Aimtron Electronics	30-3 Jun	NSE SME	₹60	₹161	37%	₹–	₹30,000
Associated Coaters	30-3 Jun	BSE SME	₹51	₹121	42%	₹–	₹40,000
TBI Corn	31-4 Jun	NSE SME	₹85	₹94	90%	₹–	₹80,000
3C IT Solutions	4-7 Jun	BSE SME	₹–	₹52	-%	₹–	₹–
Sattrix Information	5-7 Jun	BSE SME	₹–	₹121	-%	₹–	₹–
Magenta Lifecare	5-7 Jun	BSE SME	₹25	₹35	71%	₹–	₹60,000
Resourceful Automobile	TBA	BSE SME	₹–	₹117	-%	₹–	₹–

Disclaimer

• The mentioned projected IPO Grey Market Premium is valid just for the specified date.
• We do not engage in the purchase and sale of IPO forms on the IPO Grey Market.
• The IPO listing may deviate from the projected IPO GMP price due to stock market conditions.
• We highly advise that the IPO GMP rates are intended solely for educational purposes. Do not subscribe to an IPO solely based on the premium price, as it may fluctuate before the listing. Only subscribe to IPOs based on the firms’ basic factors.

What is IPO GMP?

IPO GMP is for Initial Public Offering Gross Merchandise Value. It refers to the total value of goods or services sold during an initial public offering (IPO) process.

The IPO GMP, or IPO Grey Market Premium, is the disparity between the initial public offering’s issue price and its trading price in the grey market. Prior to an initial public offering (IPO) being formally listed on the stock exchanges for public trading, there is a phase in which unofficial trading of the IPO shares occurs in the grey market. The grey market is an off-exchange market where the purchase and sale of shares occur without the participation of stock exchanges.

An IPO grey market premium (IPO GMP) refers to the disparity between the trading price of shares in the grey market and the price determined by the company for an Initial Public Offering (IPO). The grey market refers to an unregulated market where shares can be traded prior to their formal listing on a stock exchange. GMP might serve as an indicator of investor opinion for an initial public offering (IPO).

A high Gross Margin Percentage (GMP) indicates that investors hold an optimistic outlook on the company and anticipate an increase in the share price upon its listing on the stock exchange. A low Gross Margin Percentage (GMP) signifies a pessimistic sentiment among investors toward the company, indicating their anticipation of a decline in the share price upon its listing.

It should be emphasized that the GMP is not consistently reliable in forecasting the performance of the share price upon the IPO’s listing on the stock exchange. Several variables can influence the share price on the listing, including the extent of demand from institutional investors and the prevailing market circumstances. The GMP is a direct representation of investor mood at a specific moment.

The shares’ real performance will be contingent upon various circumstances, such as the company’s performance, overall market conditions, and other relevant criteria. An important factor that attracts the attention of potential investors is the Initial Public Offering (IPO) Grey Market Premium (GMP). This article seeks to offer a thorough comprehension of IPO GMP, IPOs, and their importance in the IPO grey market.

The IPO GMP provides a gauge of the market’s mood towards the IPO. A positive GMP indicates that the shares are being traded at a price higher than the issue price, which suggests a substantial demand for the IPO. In contrast, a negative GMP indicates that the shares are being traded at a price lower than the issue price, indicating a lack of strong demand.

Now, let’s explore the process of determining the approximate listing price by factoring in an additional premium. If the grey market indicates that the rate of an IPO is ₹100 and the IPO price is approximately ₹200, then the projected listing price is expected to be around ₹300. According to the computation, the listing gain will be 50% compared to the initial public offering (IPO) price.

The initial public offering (IPO) listing price may deviate from the expected price indicated by the grey market due to market conditions such as a bullish or bearish market, or the level of demand for the company’s shares. We have observed that certain IPOs saw lower grey market prices but achieved bigger returns upon listing, whilst a few IPOs in 2021 had higher grey market prices but were listed at lower levels. While the grey market is a significant aspect in calculating IPO listing gains, we strongly advise investors to only utilize grey market rates for informational purposes and not make trading decisions solely based on these figures.

Key Factors Regarding IPO GMP:

• Grey market trades entail unauthorized activities between IPO investors and stockbrokers. The outcome is contingent upon the level of trust established between both parties.
• Review our initial public offering (IPO) analysis prior to submitting an IPO application.
• The gray market rates are determined and obtained via market research or experts.
• Engaging in trading activities in the Grey Market is strongly discouraged due to its illegality.
• The Kostak Rate refers to the additional amount obtained by selling one’s IPO application (in a transaction outside the market) to another party prior to the allocation or listing of the offering.
• Avoid subscribing to the IPO at the indicated premium. The listing may be subject to modification at any time.
• Only subscribe to firms based on their fundamental analysis.

Listed IPO Grey Market Premium of IPO 2022 | 2023 | 2024:

IPO Name	Price	IPO GMP	Listed
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

What is the definition of Grey Market Premium?

The IPO Grey Market Premium (IPO GMP) is the additional price at which IPO shares are traded informally before they are officially listed on a stock exchange. It reflects the market’s assessment of the potential worth and popularity of the stocks.

The phrase “grey market premium,” sometimes known as “IPO GMP,” is used in the IPO market to determine the anticipated listing price of an IPO. Although unofficial, investors refer to the grey market price of an IPO to determine the stock’s predetermined profit. It functions both prior to the IPO listing and during the period from the IPO start date to the allotment date. The grey market premium is a measure of how the initial public offering (IPO) is expected to perform on the day it is listed, based on its predicted price.

Let’s examine the process of calculating the IPO GMP. If the firm offers an Initial Public Offering (IPO) at a price of ₹100 and the gray market premium is approximately ₹20, it can be inferred that the IPO is likely to be listed at roughly ₹120 on its first day of trading.

However, it is undeniable that there is a lack of reliability. Generally, IPO GMP is effective, although there are exceptions. Our observation indicates that when there is substantial demand for an IPO and the expected subscriptions from high net worth individuals (HNIs) and qualified institutional buyers (QIBs) are also high, the IPO is likely to be listed at or near the specified price, with an estimated IPO grey market premium (GMP).

What are the factors that are impacting the IPO GMP?

Multiple variables influence the IPO Grey Market Premium, which include:

• Company Fundamentals: Key factors that might have a beneficial impact on the Gross Margin Percentage (GMP) include robust financials, promising growth prospects, and a management team with a good reputation.
• Market Conditions: Market conditions encompass various aspects such as the general tone of the market, the performance of different sectors, and economic indicators. These factors collectively impact the level of interest that investors have in initial public offerings (IPOs).
• Economics of Demand and Supply: The availability of shares and the amount of investor interest are key factors in setting the Gross Merchandise Price (GMP).

What is Kostak Rate?

The Kostak Rate refers to the rate at which shares of an initial public offering (IPO) can be sold in the grey market before they are officially listed on a stock exchange.

The Kostak rate refers to the payment made by an investor to the seller of an IPO application prior to the IPO listing. The Kostak rates respond in a similar manner to the reaction of the grey market. Individuals have the option to purchase and sell their complete initial public offering (IPO) application at Kostak pricing outside of the market in order to determine their profit. The Kostak rates are applicable regardless of whether the investor receives the IPO allotment or not. The buyer is obligated to pay the Kostak rates for the IPO.

If an individual submitted five applications for a single IPO and then sold each application at a price of ₹1000, they would have obtained a total profit of ₹5000 rupees from the IPO. Even if he is awarded the allocation in only 2 applications, his profit will still amount to ₹5000. If the individual sells the stock and earns a profit of around ₹10000, they are required to give the remaining profit of ₹5000 to the investor who purchased the application. This is the safest method to sell your application in the IPO grey market.

What is Subject to Sauda?

The Kostak rate refers to the amount determined as the Subject to Sauda on the IPO Application when investors get the firm allotment. If an individual purchases or sells the IPO application subject to sauda, it implies that they will receive the specified sum if they are allotted the shares. However, if they are not allotted the shares, the sauda will be nullified. The profitability of this venture cannot be predetermined as it is contingent upon the allocation. If someone receives an allotment and sells the application for approximately ₹10000, and the profit increases to around ₹15000 on the listing day, then they should give ₹5000 to the buyer of the application.

How to compute the grey market premium?

The IPO GMP, also known as the grey market premium, refers to the price at which trading occurs on the grey market prior to the IPO listing procedure. The estimate is determined by evaluating the company’s performance, its demand in the unofficial market, and the likelihood of the subscription. Assuming that the IPO price for X is set at ₹200 and the grey market indicates a rate of ₹100, it can be inferred that the IPO may be listed at ₹300 (i.e., ₹200 + ₹100). However, it should be noted that this is a mere conjecture and the actual listing may differ from the price in the unofficial market.

Are grey market stocks considered to be secure investments?

The safety of trading relies on the broker or individual doing the trades. However, we strongly advise against considering it a secure option. Engaging in grey market transactions entails assuming personal liability. There may be swings on the upper end, so it is necessary to proceed with caution. We recommend referring to the IPO GMP for the goal of maximizing listing gains. Exercise prudence and engage in trading exclusively in the primary market subsequent to the listing.

How can I purchase or sell an IPO application in the grey market?

The gray market is not affiliated with any authorized individuals or establishments. Brokers engage in the purchase and sale of IPO applications using Kostak Rates or Subject to Sauda Rates, which are determined by the IPO GMP. It is advisable to locate local brokers who act as intermediaries between buyers and sellers and engage in the selling of IPO applications in the gray market. Take note of the rates before engaging in any buying or selling transactions.

Importance of Initial Public Offering (IPO) Grey Market Premium (GMP)

The IPO Grey Market Premium functions as a gauge of market sentiment and the perceived worth of the IPO shares. It enables prospective investors to assess the extent of demand and the additional amount they may need to spend if they intend to buy shares during the initial public offering (IPO). Nevertheless, it is important to acknowledge that the GMP does not ensure future performance and is susceptible to alteration.

Frequently Asked Questions (FAQs) about IPO Grey Market Premium, also known as IPO GMP: