By TBS Team | January 10, 2024
IPO Grey Market Premium or IPO GMP is considered a crucial factor during the subscription of an upcoming IPO. It must need to be checked by a person before the IPO subscription. Its primary motive is to help in the determination of an IPO’s listing price. According to experts, it is a powerful tool for any investor looking to subscribe to an IPO.
Since the grey market starts its operations in the informal market once the IPO date and price bands are announced. IPO investors keep a close check on the premium prevailing in this grey market as it could help them check the worth of an IPO before investing.
Latest IPO Grey Market Premium Rates 2024 – IPO GMP Today
The following table describes the IPO Grey Market Premium (IPO GMP Today) of all upcoming IPOs.
| IPO Name | GMP | Kostak Rates | Subject to Sauda |
| AGS Transact Technologies IPO GMP | Rs 15 | Rs 200 | Rs 500 |
| CMS Info Systems IPO GMP | NA | NA | NA |
| Supriya Lifescience IPO GMP | Rs 140 | NA | Rs 6000 |
| Data Patterns IPO GMP | Rs 300 | Rs 200 | Rs 5000 |
| HP Adhesives IPO GMP |
Rs 80 | NA | NA |
| MedPlus IPO GMP | Rs 180 | Rs 500 | Rs 3000 |
| Adani Wilmar IPO GMP | Rs.110 | Rs 700 | Rs 2100 |
| ESDS Software Solutions IPO GMP | Buyers not Available | ||
| Mobikwik IPO GMP | Buyers not Available | ||
| Skanray Technologies IPO GMP | Buyers not Available | ||
IPO GMP, Kostak Rates & Subject to Sauda – February 2024 IPO
Here are the details like Grey Market Premium, Kostak Rate & Subject to Sauda of IPOs that are ready for launch in February 2022.
| IPO Name | GMP | Kostak Rates | Subject to Sauda |
| VLCC IPO GMP | 58 | 75 | 750 |
| IXIGO IPO GMP | 75 | 80 | 800 |
| Keventer Agro IPO GMP | 150 | 150 | 1500 |
| Gemini Edibles & Fats IPO GMP | Buyers not Available | ||
| Ruchi Soya IPO GMP | Buyers not Available | ||
| Go Airlines IPO GMP | 88 | 100 | 1000 |
| LIC IPO GMP | 250 | 250 | 3000 |
| Delhivery IPO GMP | Buyers not Available | ||
| OLA Cabs IPO GMP | 35 | 35 | 300 |
Major points related to IPO Grey Market Premium
- Such transactions are off the record and essentially the mix-up of IPO investors and the stockbrokers.
- IPO Grey Market Premium is measured from the market research done by the market experts
- Usually, grey market trading is not recommended
- Kostak Rate refers to the premium an investor gets by selling off the IPO unofficially to another person before the listing or allotment of IPO
- This grey market premium is extremely volatile, hence, it is not recommended to subscribe to the IPO at this premium
- It is recommended to your own analysis before doing
IPO Grey Market Premium of Previous IPOs
Check out the IPO GMP, Kostak Rates & Subject to Sauda of previously launched IPOs.
| IPO Name | GMP | Kostak Rates | Subject to Sauda |
| Metro Brands IPO GMP | NA | NA | NA |
| Shriram Properties IPO GMP | Rs 10 | NA | NA |
| CE Info Systems IPO GMP | Rs.700 | Rs 800 | Rs 8000 |
| Rategain Travel Technologies IPO GMP | Rs.30 | NA | NA |
| Anand Rathi Wealth IPO GMP | Rs 50 | NA | NA |
| Tega Industries IPO GMP | Rs 300 | Rs 500 | Rs 9000 |
| Star Health Insurance IPO GMP | NA | NA | NA |
| Go Fashion India IPO GMP | Rs 450 | NA | Rs 9000 |
| Tarsons Products IPO GMP | Rs 180 | Rs 500 | Rs 3000 |
| Latent View Analytics IPO GMP | Rs 300 | Rs 300 | Rs 16000 |
| Sapphire Foods India IPO GMP | Rs 123 | NA | NA |
| SJS Enterprises IPO GMP | Rs 69 | NA | NA |
| Sigachi Industries IPO GMP | Rs.200 | NA | NA |
| Paytm IPO GMP | Rs 30 | NA | NA |
| Nykaa IPO GMP | Rs.750 | Rs.800 | Rs.7000 |
| Policy Bazaar IPO GMP | Rs 150 | NA | NA |
| Fino Payments Bank IPO GMP | Rs.150 | Rs.300 | Rs.3000 |
| Aditya Birla Sun Life AMC IPO GMP | Rs.25 | 0 | 0 |
| Paras Defence and Space Technologies IPO GMP | Rs.220 | 0 | 0 |
| Sansera Engineering IPO GMP | Rs.65 | 0 | 0 |
| Vijaya Diagnostic IPO GMP | Rs.5 | 0 | 0 |
| Ami Organics IPO GMP | Rs.150 | 0 | 0 |
| Aptus Value Housing IPO GMP | Discount | 0 | 0 |
| Chemplast Sanmar IPO GMP | Discount | 0 | 0 |
| Cartrade Tech IPO GMP | Rs.150 | 0 | 0 |
| Devyani International IPO GMP | Rs.55 | 0 | 0 |
| Nuvoco Vistas IPO GMP | Discount | 0 | 0 |
| Exxaro Tiles IPO GMP | Rs.10 | 0 | 0 |
| Windlas Biotech IPO GMP | Rs.85 | 0 | 0 |
| Krsnaa Diagnostics IPO GMP | Rs.320 | 0 | 0 |
| Rolex Rings IPO GMP | Rs.450 | 0 | 0 |
| Glenmark Life Sciences IPO GMP | Rs.90 | 0 | 0 |
| Tatva Chintan Pharma IPO GMP | Rs.1,150 | Rs.350 | Rs.10,500 |
| Zomato IPO GMP | Rs.25 | Rs.600 | Rs.3,000 |
| G R Infraprojects IPO GMP | Rs.560 | 0 | 0 |
What is IPO Grey Market?
An IPO grey market essentially refers to an ecosystem in which traders and investors buy and sell shares of a company before its official listing in the stock exchange. Since their transactions are done off the record, they may not stand longer. In most cases, businesses that are planning to go public through an IPO decide to sell shares to private investors through brokers.
The main motive behind this exercise is to let investors earn more profit after the listing of the IPO. But it is not like they accrue profit always. Sometimes, if an IPO fails to perform, these investors suffer major losses.
This market tends to be extremely volatile as it is performed under an unofficial trading ecosystem.
What is IPO Grey Market Premium?
IPO Grey Market Premium refers to a price that is fixed in the IPO Grey Market of an IPO. This is done between the buyers and sellers of the IPO before the official listing of the IPO in the stock exchange.
This premium is of immense help to IPO investors who can further decide whether to subscribe to the IPO or not. This Grey Market Premium is typically based on the equation of demand and supply. If the supply is low against the demand, the premium goes up and vice versa.
Since this price is fixed under an official system, there is no guarantee the upcoming IPO will behave in the same way as it was predicted in the IPO Grey Market. Despite this, it is used as a powerful tool among investors before they subscribe to an IPO.
IPO Grey Market Premium or GMP is the premium amount that investors pay to buy the IPO shares in the grey market. For example, an upcoming IPO has an issue price of Rs.300, and its IPO Grey market premium is Rs.400.
So, those who are willing to buy the company’s shares would need to pay Rs.700 (300+400) per share in the IPO grey market.
This IPO Grey Market premium price is also an indicator of the prospects of the IPO in the stock market.
If this IPO GMP is an upper end, it means that the IPO would perform better due to its high demand in the market.
Just like the IPO Grey Market Premium was high in the above case, it can also be negative. It all depends on the popularity and acceptance of the company looking to launch its IPO.
What is Kostak Rate?
Kostak Rate is a widely prevalent element of Grey Market. In such a market, the trading of the shares is done that is to be listed on the stock exchange after the launch of the IPO.
Kostak Rate means the price that interested investors need to pay to invest in an IPO.
For example, a company is going to launch its IPO in the next month. Now Mr. X has applied for 10000 shares in this IPO. However, he is not confident about the success of the IPO and whether he will get the IPO allotment or not.
On the other side, Mr. Y, who is confident about the success of the IPO and is fully assured of getting the allotment. Now, Mr. Y can separately apply for the IPO and he can also apply on behalf of Mr. X at a specific price, for instance, Rs.8000. This amount is the Kostak Rate.
This rate is fixed for every lot. For example, if the lot size of an upcoming IPO is 10000. So there would be a total of 10 lots in this IPO application that Mr. Y can buy from Mr. X.
What does Subject to Sauda refer to?
Subject to Sauda refers to an offer in the Grey market. Since interested investors can choose to buy and sell IPO applications in the IPO grey market at the Kostak Rate before the official allotment of the IPO, Subject to Sauda refers to a deal on which both buyer and seller settle that this will remain legal only if the shares are allotted to the seller.
If the shares are not allotted to the seller, the deal becomes ineffective.
For example, a company that is going to launch its IPO has fixed an issue price of Rs.300 per share. Now, Mr. X is willing to sell his application for 100000 shares at Rs.8000 and Mr. Y decides to buy the same under a Subject to Sauda deal.
Now, as per the deal, if Mr. X acquires the allotment, Mr. Y is supposed to pay Rs. 8000 to Mr. X and along with the price for the shares. Therefore, the total sum that Mr. Y would pay is Rs.(100000*300)+8000 = Rs.3,00,08,000.
Advantages of investing through IPO Grey Market Premium
The major benefits of investing in an IPO through Grey Market Premium are:
- One has the option to buy a company’s shares before its IPO gets listed on the stock exchange. The person can expect to get amazing returns if the IPO is successful.
- The Grey Market premium designates whether the IPO is going to make it big or not. Stock investors can check the GMP and decide whether others are fascinated in buying the shares of a company’s IPO or not in advance.
- As buying and selling of shares are done over the counter, there is no issue related to paperwork or any legal formalities.
The Bottom Line
Though the system of IPO Grey Market Premium is not legal, it still plays a pivotal role in anticipating the performance of an upcoming IPO in the stock market.
Disclaimer: This blog is written for educational purpose only. Data, Securities, Advisory and Quotes mentioned here are for guidance only. Doing research by investors itself is highly recommended.