| IPO Name | GMP | Kostak | Gain % | Issue Price | Status |
|---|---|---|---|---|---|
| Quality Power 14-18 Feb |
0 | - | 0 | 425 | MAINBOARD- |
| Hexaware Technologies 12-14 Feb |
0 | - | 0 | 708 | MAINBOARD |
| - | - | - | - | - | MAINBOARD |
| - | - | - | - | MAINBOARD | |
| - | - | - | - | - | MAINBOARD |
| - | - | - | - | - | MAINBOARD |
| - | - | - | - | MAINBOARD | |
| - | - | - | - | MAINBOARD |
What is Grey Market Premium (GMP)?
The Indian stock market is a vibrant hub that attracts both experienced investors and newcomers. During the IPO season, one term that often sparks curiosity is Grey Market Premium (GMP).
When the Grey Market Premium (GMP) for an IPO is negative, it indicates that the expected listing price is lower than the issue price. Conversely, when the GMP is positive, it suggests that the expected listing price is higher than the issue price.
Interpretation of GMP Values:
Positive GMP:
- A positive GMP (e.g., ₹50) suggests that the grey market is anticipating a higher listing price for the shares than the issue price. This is generally seen as a bullish sign and indicates that investors expect good demand for the shares when they list on the stock exchange.
- Example: If the issue price is ₹100 and the GMP is ₹50, the expected listing price could be around ₹150. This often leads to higher investor enthusiasm as it suggests potential for immediate gains.
Negative GMP:
- A negative GMP (e.g., -₹20) indicates that the grey market is anticipating a lower listing price than the issue price. This can happen due to various factors, such as market sentiment, the issue’s pricing, and overall market conditions.
- Example: If the issue price is ₹100 and the GMP is -₹20, the expected listing price might be around ₹80. A negative GMP can reflect cautious investor sentiment or a poor market outlook, leading to potential losses for those buying the shares at the issue price.