🟢 IPO GMP today: Know the latest status of grey market premium
Amaan Khan | April 19, 2025
For now, there is no significant movement in the grey market premium (GMP) of mainboard and SME IPOs — GMP remains at N/A. The uncertainty that remains regarding global tariffs is directly affecting the Indian IPO market. Due to this, there has been a slight stagnation in the market for the last few weeks.
However, the atmosphere may change in the coming days as big companies like Ather Energy, LG Electronics, and NSDL are going to knock with their IPOs. Investors are now eyeing these big offers.
Latest IPO Grey Market Premiums & Projected Listing Profits
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| Current IPOs | IPO GMP | Price | Gain | Date | Subject | Type |
|---|---|---|---|---|---|---|
| Tankup Engineers IPO | ₹8 | ₹140 | 6% | 23-25 April | ₹5000 | NSE SME |
| Ather Energy | ₹5 | ₹321 | 2% | 28-30 April | ₹200 | Mainboard |
| Arisinfra Solutions | ₹- | ₹- | -% | 2025 | ₹- | Mainboard |
| Iware supplychain | ₹- | ₹95 | -% | 28-30 April | ₹- | NSE |
| Arunaya Organics | ₹9 | ₹58 | 16% | 29-2 May | ₹15,000 | NSE SME |
| Kenrik IndustriesNDL | ₹- | ₹25 | -% | 29-6 May | ₹- | BSE SME |
| NSDL | ₹- | ₹- | -% | 2025 | ₹- | Mainboard |
| Wagons Learning | ₹- | ₹82 | -% | 2-6 May | ₹- | BSE SME |
| Aten papers | ₹- | ₹96 | -% | 2025 | ₹- | BSE SME |
| Solar91-cleantech | ₹- | ₹- | -% | 2025 | ₹- | BSE SME |
| Rosmetra digital | ₹- | ₹- | -% | 2025 | ₹- | BSE SME |
Important point for investors:
“A high grey market premium (GMP) indicates that investors are optimistic about the company and expect the share price to rise at the time of listing. On the other hand, a low GMP indicates that investor sentiment is weak and the share price may fall after listing. The demand in the grey market plays an important role in determining whether the listing of an IPO will be positive or negative.”
How does GMP relate to an IPO?
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IPO GMP, or Initial Public Offering Grey Market Premium, is the difference between the IPO’s issue price and its estimated listing price in the grey market. This grey market operates unofficially, where shares are traded before their official listing on the stock exchange. It functions over-the-counter (OTC), meaning these transactions occur without the involvement of formal exchanges.
The GMP reflects how much buyers are willing to pay for the shares in advance, based on demand and sentiment. It serves as an indicator of investor interest and can give potential investors a sense of how the IPO might perform upon listing.
It is important to understand that the grey market premium (GMP) of an IPO is not always an accurate indication of how the stock will perform post listing. The GMP only reflects investor sentiment at a particular point in time, but the listing price depends on several other factors — such as demand from institutional investors, current market conditions, and the company’s internal strength.
It has been observed many times that IPOs with a high GMP listed at a lower level than expected, while there were some IPOs with a low GMP but performed well on the day of listing. Market trends such as bullish or bearish and demand for stocks can significantly impact the listing outcome.
So, even though the grey market is a useful indicator to understand investor sentiment ahead of an IPO, it should be viewed only for informational or educational purposes. Investors are advised not to make investment decisions based on GMP alone.
What to Keep in Mind About IPO GMP
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- The grey market transactions are unofficial and that is an involvement of IPO investors and the stockbrokers. It depends on the trust between both parties.
- Read our IPO analysis before applying for an IPO.
- The grey market rates are calculated and provided or sourced from market research or experts.
- We do not recommend trading in the Grey Market as it’s illegal.
- Kostak Rate is the premium one gets by selling his/her IPO application (in an off-market transaction) to someone else even before allotment or listing of the issue.
- Do not subscribe to the IPO on the premium given above. It may change anytime before listing.
- Subscribe only considering the Fundamentals of the companies.
How to Calculate Grey Market Premium?
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IPO GMP or grey market premium refers to the premium at which IPO shares are traded unofficially before their official listing on the stock exchange. This premium is influenced by factors such as company fundamentals, investor demand, and expected subscription levels. For example, suppose the issue price of an IPO is set at ₹150, and the grey market is quoting a premium of ₹80. This suggests that the shares could potentially list around ₹230 (i.e., ₹150 + ₹80). However, it is important to note that this is only an estimate – the actual listing price may vary due to market sentiment, investor behavior, and broader market conditions.
How Safe Are Grey Market IPO Shares?
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How safe trading in the grey market is depends largely on the broker or person you are transacting with. Still, we do not consider it a safe option. If you decide to trade in the grey market, it will be entirely at your own risk. Sharp fluctuations in prices are possible, so it is important to be extremely cautious.
We recommend that IPO GMP is only an estimate to give you an idea of potential listing gains. It is better to use only official channels for investment and trade only after listing in the stock market.
How Do I Buy / Sell IPO Application in Grey Market?
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There are no official people or businesses associated with the grey market. Some brokers buy and sell IPO applications on Kostak Rates or Subject to Sauda Rates based on the IPO GMP. One should find local brokers who stay between buyers and sellers and do the grey market trading of IPO applications. Be aware of the rates and then do the buying or selling.
Why IPO GMP matters
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The IPO grey market premium gives an indication of how the market is viewing a company’s upcoming IPO. This premium helps investors understand how much demand a stock might have and how much higher it might trade above the issue price. However, it is important to note that GMP is only a potential indicator and not a guarantee of any kind. It fluctuates due to changes in market sentiment and investor behavior.