IPO GMP | Latest IPO Grey Market Premium & Kostak Rates | IPO 2022-23| IPO INDIA

The IPO GMP is also known as The Grey Market Premium. The IPO GMP is a figure derived from the demand for a company’s IPO. The grey market is an unofficial market. After the IPO date and price band were announced, the grey market started unofficially in the unregulated market.

Latest IPO Grey Market Premium | Latest IPO GMP

Here are some latest IPO Grey Market Premium or latest IPO GMP. But note that, don’t rely on this table.

Potential and experienced investors often check the upcoming IPO GMP before deciding to invest. However, it’s hard to note that this figure can change based on market conditions, demand, and subscription numbers.

In basic words, the IPO grey market is an unofficial market where the IPO shares are traded before they are officially listed on the stock market.

The Ipo Grey market is like a sneak peek. The IPO grey market is not regulated, sort of like an informal trading space. It’s a big deal for IPOs, even though it’s unofficial. Because it gives information about possible investors what others are thinking about the shares and how much shares they want.

The extra amount that investors are ready to pay above the official IPO price in the grey market is known as the Grey Market Premium. Kostak rate or subject to Sauda in the price at which people sell IPO applications in the Grey Market.

In this article, we are going to learn about IPO GMP, the Latest IPO Grey Market Premium, and some strategies for IPO grey market.

What is IPO GMP?

IPO GMP (IPO Grey Market Premium) is the gap between how much an IPO is supposed to cost and what people are actually willing to pay for it in the grey market. Basically, It’s a time for traders to trade shares unofficially before the IPO starts trading in the grey market. This is the market that is outside the official stock market. Here people can buy and sell shares without going through the stock exchange process.

The IPO GMP is like the difference between the price of shares in a secret market and the price set by the company when they first go public. The grey market, lets people buy and sell shares before they officially hit the regular stock market. The grey market premium helps us to get information about how investors feel about the IPO. If the grey market premium is high, it means investors are very excited about the IPO and think the share price will go up when it’s available on the share market. A low GMP indicates that investors are downbeat about the company and expect the share price to fall when it lists.

It is a bit tricky to predict how a stock price will do when it first hits the market. We can get an idea of what investors are thinking before the official stock market by IPO Grey Market Premium.

Points to Consider about IPO GMP

• In the grey market, IPO investors and stockbrokers team up. In the grey market, deals rely on trust.
• For the investors, before applying for an IPO read our article How to invest in IPO.
• The grey market rates are provided and calculated by market research or experts.
• Grey market trading is not recommended.
• Don’t apply for the IPO depending on the premium given above. Before listing, it may change anytime.
• Apply for IPO according to the market value, company information and

Past IPO Grey Market Premium | IPO 2022-23

What is Grey Market Premium ?

The IPO GMP (IPO Grey Market Premium) is refers to a special price before shares officially listed in the stock market. The IPO GMP is the extra amount that people are willing to pay before the listing. This tells us what the investors think those shares might be worth and how much investors are interested in wanting them.

In the world of IPOs, the IPO GMP is like a crystal ball that people use to guess how much an IPO might cost when it officially starts trading. People peek at it to figure out how much they could gain from the IPO, although it’s not official.

Factors that influencing IPO GMP

Market Conditions

The mood of the overall stock market depends on how different business areas are doing, and economic conditions all play a part in how much investors are interested in the IPO.

Company Fundamentals

If the company is growing and trustworthy people are running the company, these things can make the GMP high.

Demand and Supply

Deciding on the GMP matters on how many shares are to buy and how much investors want them.

What is Kostak Rate?

What an investor gives to the person selling an IPO application before the IPO is listed on the stock market is called the Kostak Rate. The Kostak rates react as the grey market reacts in the same way. To secure your profit, you can trade your IPO application at Kostak rates outside the market. You can trade your IPO applications, whether you get the IPO or not. The buyer needs to pay the Kostak Rate for the IPO.

You apply for one IPO five times. If you sell applications for 1000 INR each, you make 5000 INR. Your profit stays at 5000 INR, even if you get the IPO in just three applications. If you sell the stock and make a 10000 INR profit, you give 5000 INR for that profit to the person who bought your application. This is the safe way to sell your application int he IPO Grey Market.

IPO GMP FAQs (IPO Grey Market Premium FAQs)