Question 1

What is Grey Market Premium (GMP) in IPO?

Accepted Answer

Grey Market Premium (GMP) is the price at which IPO shares are traded in the unofficial grey market before the official stock exchange listing. A positive GMP indicates expected listing gains, while a negative GMP suggests a possible listing below issue price.

Question 2

Is IPO GMP reliable?

Accepted Answer

GMP is an unofficial indicator and not regulated by SEBI. It can give a rough sense of market sentiment but is not a guaranteed predictor of listing price. Always do fundamental analysis before applying to any IPO.

Question 3

What is Kostak rate in IPO?

Accepted Answer

Kostak is the price at which an IPO application is bought or sold in the grey market before allotment. It represents the premium paid for an entire lot application, regardless of whether shares are allotted.

Question 4

What is Subject to Sauda (SS) in IPO grey market?

Accepted Answer

Subject to Sauda (SS) is the price at which an IPO application is traded in the grey market only if shares are allotted. Unlike Kostak, no payment is made if allotment does not happen.

Question 5

How is IPO GMP calculated?

Accepted Answer

GMP is not officially calculated — it is determined by supply and demand in the unofficial grey market. The estimated listing price is typically calculated as: Issue Price + GMP = Expected Listing Price.

#	Company	Price Band	Issue Price (Max)	Subscription	GMP	Status

#	Company	Price Band	Issue Price (Max)	Subscription	GMP	Status

Grey Market Premium Today

Grey Market Premium Today