GMP stands for grey market premium. It's a critical aspect of the IPO punting business that really gets people going on what's happening "outside" the legit markets.
The grey market is an unofficial market that exists in parallel with the official market. In the context of IPOs, the grey market is where unlisted IPO shares are traded.
It is here, at least in some portion, that the IPO punters get their kicks. And they get it by tracking what's called the IPO GMP.
The grey market premium or GMP is the amount, over and above the issue price, that traders are willing to pay or ask for to trade these yet to be listed IPO shares.
The IPO's GMP gives you an idea of the market's perception of the company and how it will perform on the listing day.
If you are looking forward to applying for an IPO, sure take a look to see what could happen on listing day.
But remember, the IPO's GMP shouldn't be the only factor influencing your decision on whether or not to hold or exit the stock.
If you are an investor, then we would say take the IPO GMP with a pinch of salt.
Since you're interested in IPO, check out the current IPOs and upcoming IPOs on our website.
Aug 9, 2023
From grey market premium to issue size, here's everything you need to know about the upcoming IPO of this specialty chemical player.
Jul 1, 2023
This jewellery company is coming out with its IPO next week. Should you apply?
Jun 22, 2023
From grey market premium to price band, here's everything you need to know about the upcoming IPO of Cyient DLM.
Jun 1, 2023
IKIO Lighting, a reputed LED manufacturer, is coming out with its IPO next week. Should you apply?
Mar 17, 2023
This road construction company is coming out with its IPO next week. Here are 5 key details.
Dec 26, 2022
From GMP to price band, here's everything you need to know about Radiant Cash Management IPO.
Dec 14, 2022
The Indian retailer of cars like Mercedes-Benz, Honda etc, has come out with an IPO. Read all the important details here.
Dec 7, 2022
Drones have remained the talk of the town. Seeing this as an opportunity, this drone company is coming out with its IPO next week.
Nov 15, 2022
Well-known real estate player Keystone Realtors is entering the primary market with its IPO. Will strong pipeline and forthcoming projects drive growth?
Oct 25, 2022
The IPO markets are finally reviving. DCX Systems is all set to come out with its IPO on 31 October 2022.
Aug 2, 2023
From grey market premium to price band, here's everything you need to know about the upcoming IPO.
Jun 27, 2023
This civil construction company is going live with its IPO this Friday. Should you apply?
Jun 9, 2023
All you need to know about the upcoming IPO of HMA Agro Industries.
May 2, 2023
India's fourth REIT is about to get listed on the bourses soon. Have a look at the company's financials, GMP and more.
Mar 3, 2023
The Indian primary market is buzzing with activity. Next week, a quartz company is coming out with its IPO. Check out more details inside.
Dec 19, 2022
KFin Technologies - a technology driven financial service platform - has come out with its IPO. Find out five important details about the IPO.
Dec 9, 2022
As a slew of IPOs hit the market, the biggest wine producer in India plans to make its big debut. Here are key details about the IPO.
Nov 26, 2022
The engineering systems and solutions company is entering the primary market with its IPO next week. Check out financials, peer comparison, and more.
Oct 29, 2022
Medanta Hospital operator - Global Heath is coming out with an IPO next week. Check out all important details.
Oct 10, 2022
Tracxn Technologies is backed by angel investors such as Ratan Tata, Bansals of Flipkart and Sahil Barua of Delhivery.
IPO Price Band is the price range within which investors can bid for the shares. The minimum price is called the floor price and the maximum price is called the cap price.
In case the company revises the price band, the offer period gets extended for at least three additional working days.
Any revision in the price band and the revised offer period, if applicable, is shared by notification to the stock exchanges by issuing a press release and on the websites of the book running lead managers.
GMP stands for grey market premium. It is the amount, over and above the issue price, that traders are willing to pay or ask for to trade IPO shares. The GMP can tell you how an IPO will perform on its listing day.
If you are applying for an IPO, take a look to see what could happen on listing day. But remember GMP shouldn't be the only factor influencing your decision on whether or not to hold or exit the stock.
If you are an investor, then we would say take the GMP with a pinch of salt. A factor as volatile as GMP can't be a deciding factor.
Therefore, you should never apply for an IPO just because it commands a good GMP. You should apply for an IPO because you believe in the company's earning potential. Hence more weightage should be given to the fundamentals of the company.
A lot size is the minimum number of shares that an investor needs to bid for. It is different for each IPO and is fixed by the company.