Fri. Oct 7th, 2022

Grey Market IPO, Grey Market IPO Premium, Latest IPO GMP, Gray Market IPO, Kostak Rates

Grey market is there for a very long time and many people take advantage of it as they buy or sell the shares on application and make a profit outside the official market. In this case, all transactions are done on real cash or a personal basis. There is no involvement of SEBI, stockbrokers, or Stock Exchange.

Grey Market IPO Premium
Grey Market IPO Premium

Grey Market IPO Premium

The grey market premium IPO GMP is information which is generally calculated based on the demand of a company which is coming up with an IPO. The grey market starts after the IPO date and price band announcements and grey market done unofficially in the unregulated market. The GMP price might vary as per subscription numbers, the market conditions and demand.

Latest IPO GMP Rates, Grey Market IPO Premium

IPOIssue PriceGMP PriceListed Price
Adani Wilmar IPO GMP Rs. 140
CMS Info Systems IPO GMP Rs. 216Rs. 5Rs. 220
Supriya Lifescience IPO GMP Rs. 274Rs. 130Rs. 421
HP Adhesives IPO GMP Rs. 274Rs. 90Rs. 315
Data Patterns IPO GMP Rs. 585Rs. 300Rs. 856
Medplus IPO GMP Rs. 796Rs. 180Rs. 1040
MapmyIndia IPO GMP Rs. 1022Rs. 700Rs. 1565
Grey Market IPO Premium

Note: The GMP prices might not accurate as it depends on the buyer and seller and the Price is searched over the internet on various sites.

Types of Market

There are three types of market:

  • White Market- This is an Open Market.
  • Black Market- This is an Illegal Market.
  • Gray Market- This is an Parallel Market.

What is Grey Market IPO?

Grey Market IPO (GMP) is also called GMP in the share market. It is also called the parallel market. It generally reflects how the IPO might react on a listing day. Grey market is an unofficial market where people specifically Buyer/Seller, Buy or sell the IPO shares or applications before they are officially launched on the listed stock exchanges. It is an illegal market, where shares are traded much before the opening of the subscription date.

What is Grey Market IPO Premium?

Grey Market Premium is a premium amount where the Grey market shares are traded before they get listed on an exchange. The grey market premium or GMP is an indication of the price of the share on a listing day. We will learn it by example.

Suppose, If a company introduces an IPO with a listing price of 1000 Rupees and the grey market price of that share is 200. then, then one assumes that the price will be listed at around 1200 on the day of listing of the share.

How one can Benefit from Grey Market IPO Premium?

In general, people can make the money from GMP in 2 ways. The first method is, you can sell your application of IPO to the Buyer. The second method is one can buy or sell the shares before they get listed on the stock exchange.

Let’s discuss both cases one by one.

Trading IPO Applications in the Grey Market:

  • Investors apply for the IPO through their broker.
  • When Investors like us or any other, apply for the IPO application, then Buyers approaches to the Seller(Us) of the IPO who have applied for the IPO application.
  • The buyers ask sellers to sell them the application at certain specific price and they determine the price by analysing market condtitions.
  • Sellers may also sell their application at a certain price so that they can get the maximum profit from the deal. As, in this case, seller will always be in profit even if he did not get IPO. He still be getting the money from the buyer he has sold his application to the buyer.

Trading IPO Shares in the Grey Market:

  • In this case, Whenever Investors apply for shares during the IPO of that shares, they take a financial risk as they might not get shares or shares might be listed at a lower price.
  • Many people think that the particlar share will be listed at a higher price than the issue price. In this case, they start collecting shares even before the allotment of shares is done.
  • Then, buyers contact the grey market dealers to buy the shares at GMP.
  • Next, the dealer make a contact with the sellers who wanted to sell the shares of that IPO.
  • Then, the dealer gets the application detail from the seller and then communicate with the buyer that he bought a few number of shares from the sellers in the grey market.
  • Now, when the allotment is done, sellers might or might not receive an allotment of shares.
  • If the shares are allocated to the investor, he will get a call from the dealer to transfer the shares to demat account.
  • If no shares are allocated to the sellers, then the deal gets canceled without any settlement.

What are Kostak Rates?

Kostak rates are the amount where an individual buys the application from the seller even before IPO listing. Kostak rates are applied on every condition whether you get the allotment or not. For example, if one person applies for 10 applications in 1 IPO, and sold the same to the buyer at Rs. 2500 each application. Then, he will get a profit of Rs. 25000 even during the listing he got 1 lot.

Also, Read Upcoming IPO Watch List 2022

Also, Check Grey Market IPO Premium prices by searching on Google

How can I buy and sell in the Grey market?

All transactions are done on real cash or personal basis through dealers. There is no involvement of SEBI, stockbrokers, or Stock Exchange.

What decides the IPO grey market premium?

IPO Grey Market Price Depends on the supply and demand. If the subscription value is lower than the stated, then the price might be lower and vice versa.

What is grey market IPO?

Grey Market IPO (GMP) is also called GMP in the share market. It is also called the parallel market. It generally reflects how the IPO might react on a listing.

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