Live GMP Today: Day to Day Activity - IPO Reviews

Live GMP Today: Day to Day Activity

Grey Market Premium Today / GMP of an IPO:

Grey Market Premium (in short GMP) of an IPO indicates the additional price an applicant is willing to pay in a grey market. For example, if the issue price of the IPO named 'X' is set at Rs 100. The demand for the 'X' IPO is higher, that the number of bids for shares is more than the number of shares allocated. Then grey market activity happens and the applicants ask for a higher price, that can be extra Rs 20 or Rs 40.

Here we show day to day GMP activity of all the IPOs. Remember that the price may vary from time to time and city to city. This is just the average GMP across all the cities and time.

Check the table shown below for the Grey Market activity for the IndoStar Capital Finance Ltd IPO:


GMP Activity On Date
GMP Today
IndoStar Capital Finance IPO GMP on May 9, 2018
Rs 20
IndoStar Capital Finance IPO GMP on May 10, 2018
Rs 25
IndoStar Capital Finance IPO GMP on May 11, 2018
Rs 55
IndoStar Capital Finance IPO GMP on May 12, 2018
Rs 65
IndoStar Capital Finance IPO GMP on May 13, 2018
Rs 65
IndoStar Capital Finance IPO GMP on May 14, 2018
Rs 50
IndoStar Capital Finance IPO GMP on May 15, 2018
Rs 80
IndoStar Capital Finance IPO GMP on May 16, 2018
Rs 80
IndoStar Capital Finance IPO GMP on May 17, 2018
Rs 50
IndoStar Capital Finance IPO GMP on May 18, 2018
Rs 50
IndoStar Capital Finance IPO GMP on May 19, 2018
Rs 40
IndoStar Capital Finance IPO GMP on May 20, 2018
Rs 30


You might have been by now familiar with IPO, its procedure and mechanism. If yes, you might have come across the term Grey Market Premium or simply GMP. People track the GMP activity of an IPO and take the decision to apply. So, what actually is the Grey Market Premium and how is it related to the IPO listing gains.

Is the GMP directly related to the IPO Primary Market? 

No, Grey Market Premium activity does not have an official direct relationship with the IPO market or primary market. As the subscriptions are higher in the primary market, investors will not receive all the number of bids they apply. Hence, the unofficial grey market activity takes place where there will be an unofficial transfer of shares from one investor to the another at a premium price depending on the demand. 

Grey market activity starts much before the subscription of the IPO actually starts. Hence, the grey market largely runs on trust because there will be no physical handover of the shares. There are only unofficial contracts that are represented by slips of paper and the transactions are entirely based on mutual assurance between the two parties.

What does the Grey Market Activity Mean for Retailers, HNIs, Traders?

Higher grey market premium indicates the positive opening for the IPO on a listing day. Many investors and brokers look at this activity to keep track of the post listing gains of an IPO. For High Networth Investors (HNI or NII), the grey market activity provides an implication of the appetite for the stock and serves them to judge how many lots are needed to apply for in the IPO. For IPO financiers, the grey market activity provides an idea of whether financing the IPO to the retail or HNI investors can be a profitable business proposal or not.

What is Grey Market Premium (GMP)?

Grey Market Premium is the price that trader wills to pay for a particular IPO over and above the actual offer price of the IPO. To explain to a layman, Grey Market Premium activity of an IPO is similar to what we observe during the first few days of a super hit movie at the cinema theatres. If it is a must-watch movie, we buy black tickets at a higher price at the theatres.

What is Kostak and Kostak price?

Kostak is the informal word that implies the cost of the IPO application. It is the price at which you actually sell the IPO application in the Grey Market. Higher demand for the IPO means higher Kostak price.


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