IPO GMP, Live IPO Grey Market Premium 07-10-2024 Top Latest IPO List

The IPO grey market premium is a critical issue. Before applying for any IPO, investors check this GMP. Many investors do not apply for an IPO due to low or no GMP. After a company announces its IPO before it is listed in the stock market, the GMP of that company’s shares shows whether investor sentiment is positive or negative. If investor sentiment is positive, that share is considered to have a good listing gain.

Latest IPO GMP, LIVE Grey Market Premium, Upcoming IPO GMP

All Close IPO Names, Listing Gain, Listing Price Checklist 2024

All Listed IPO Company Names 2024

Indian Phosphate IPO Grey Market Premium, Jay Bee Laminations IPO GMP, Premier Energies IPO GMP, Bajaj Housing Finance IPO GMP.ECOS (India) Mobility & Hospitality Limited IPO

Rapid Mutlimodal Logistics Limited IPO GMP, Resourceful Automobile IPO, Ideal Technoplast IPO GMP, QVC Exports IPO Grey Market Premium, Orient Technologies IPO GMP, Brace Port Logistics Limited IPO Grey Market Premium, Interarch Building Products IPO GMP, Forcas Studio IPO GMP, Saraswati Saree Depot IPO GMP, Solve Plastic Products Limited IPO Grey Market Premium, Broach Lifecare Hospital IPO grey market premium. Unicommerce eSolutions IPO GMP, Firstcry IPO GMP today, Aesthetik Engineers IPO grey market premium, Positron Energy IPO GMP, Sunlite Recycling Industries IPO grey market premium, Saraswati Saree Depot Limited IPO.

FPO-SAR Televenture Limited, FPO-SAR Televenture Limited IPO today, RNFI Services Limited, V.L. Infraprojects Limited IPO GMP, VVIP Infratech Limited, Chetana Education Limited IPO, Manglam Infra and Engineering Limited, Aprameya Engineering Limited IPO grey market premium GMP ipo, Clinitech Laboratory Limited IPO, Trom Industries Limited IPO, Esprit Stones Limited, S A Tech Software India Limited, Sathlokhar Synergys E&C Global IPO Grey Market Premium, Ashapura Logistics, Bulkcorp International GMP IPO, Rajputana Industries IPO grey market premium. Ola Electric IPO GMP, Utssav Cz Gold Jewels, Dhariwalcorp Limited IPO GMP, Ceigall India IPO grey market premium, Afcom Holdings IPO grey market premium today

What is an IPO?

If a company wants to be listed in the stock market for the first time, that company is listed in the stock market through an IPO. Usually, a company needs money to grow, buy another company, or for some other reason. At that time, there are two options in front of the company: first, taking a loan from the bank, and second, getting listed in the stock market. If you take a loan from a bank, you have to pay interest instead.

Therefore, most companies are listed in the stock market through IPOs and sell shares instead of borrowing from the public. After listing on the stock market, a company becomes a public company from a private limited company.

What is the Grey Market Premium (GMP)?

After a company’s IPO date is announced, its shares start trading in the grey market long before being listed. But what is this grey market? And how is share trading here? The stock market is the official market, which SEBI controls, but the grey market is the unofficial market; no one controls this market. After a company’s IPO date is announced, investors start buying shares at a premium over the company’s issue price per share.

If a buyer feels that the company’s shares can offer a listing gain of 50% more than the issue price, then that buyer offers a higher premium, and if a seller agrees to this offer, he sells the application from the buyer who applied for his IPO and earns a big profit. All this buying and selling is done through a broker. All these share buying and selling processes are done very secretly; the general public cannot know about this. All transactions in the grey market are done only with mutual trust.

How GMP is Calculated

Let’s say a company named ABC Limited has priced a share for an IPO at 100 rupees, and in the grey market, GMP is running example 20. In this case, investors are buying and selling shares at a 20% premium over the issue price of the company. Then the expected listing price will be:

• Issue Price: ₹100
• Current GMP: ₹20
  • Total = ₹120 Expected listing price.

IPO Grey Market Premium (GMP): Advantages Vs Disadvantages

• Advantages:
• Investor Sentiment: The investor sentiment of an IPO is understood through GMP. A high GMP indicates that investors are very interested in investing, i.e., shares can give a good listing gain, and a high demand among investors to buy shares gives a positive signal of the future growth of the company.
• Investment Decision: Many investors give special importance to GMP before investing in an IPO. Seeing the grey market premium helps decide whether to invest in an IPO.
• Profit Opportunities: An investor can earn a good profit by selling the shares in the grey market if the IPO fetches a higher premium than the company’s issue price.
• Liquidity: If a company’s shares are bought and sold in the grey market, the liquidity of that company’s shares increases, making it very easy for an investor to buy or sell shares.

• Disadvantages:
• High Risk of Fraud: Since the grey market is unofficial, there is a high chance of fraud.
• Manipulation and Volatility: Many times, IPOs show a high GMP premium to attract investors, and this GMP premium keeps increasing or decreasing every moment. Sometimes, the GMP premium shows high, but within a few minutes, it goes extremely low.
• Regulatory Issue: Since the grey market is not controlled by the government, an investor may face legal complications for buying and selling shares in this market.

What is the Kostak Rate?

The kostak rate is used in the grey market. The kostak rate means the premium or amount at which an investor sells his IPO application rights in the grey market before the shares are officially listed on stock exchanges.

Investing in IPO Strategies

Is the Grey market risky?

Yes

Is grey market premium accurate?

Why is grey market premium important?

Can GMP guarantee a profit?

Is GMP the only factor to consider when investing in an IPO?

What does a high GMP indicate?

What should investors consider before participating in the grey market?