IPO GMP Today Live 2025, Latest Grey Market Premium Live Update

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IPO GMP
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The IPO GMP, also called the grey market premium, is currently trending for Mainboard and SME IPOs. These include Indo Farm Equipment, Standard Glass Lining, Leo Dryfruits, Davin Sons, Parmeshwar Metal, Fabtech Technologies, Delta Autocorp, BR Goyal, and Technichem Organics.

Live IPO GMP Today

Current IPOs

IPO GMP

Price

Gain

Date

Subject

Type

Standard Glass Lining

₹90

₹140

61%

6-8 Jan

₹7,000

Mainboard

Indo Farm Equipment

₹99

₹215

46%

31-2 Jan

₹5,500

Mainboard

Capital Infra Trust

₹-

₹100

-%

7-9 Jan

₹-

Mainboard

Quadrant Future Tek

₹-

₹290

-%

7-9 Jan

₹-

Mainboard

Technichem Organics

₹15

₹55

27%

31-2 Jan

₹25,000

BSE SME

Leo Dryfruits

₹18

₹52

35%

1-3 Jan

₹29,000

BSE SME

Davin Sons

₹15

₹55

27%

2-6 Jan

₹23,000

BSE SME

Parmeshwar Meta

₹40

₹61

65%

2-6 Jan

₹70,000

BSE SME

Fabtech Technologies

₹75

₹85

88%

3-7 Jan

₹90,000

BSE SME

Indobell Insulations

₹–

₹46

-%

6-8 Jan

₹-

BSE SME

Delta Autocorp

₹55

₹130

42%

7-9 Jan

₹45,000

BSE SME

B.R. Goyal

₹20

₹135

15%

7-9 Jan

₹17,000

BSE SME

Avax Apparels

₹–

₹70

₹–

7-9 Jan

₹–

BSE SME

Solar91 Cleantech

₹100

₹195

51%

2025

₹–

BSE SME

Note for Investors: A positive IPO GMP indicates strong demand in the grey market for that IPO. Conversely, a negative GMP suggests low or no demand in the grey market. The demand directly influences whether the IPO listing will be positive or negative.

What is IPO GMP?

IPO GMP (Grey Market Premium) is the difference between the issue price of an IPO and the price at which its shares trade in the grey market. The grey market is an unofficial platform where investors buy and sell IPO shares before they are listed on the stock exchange.

A positive IPO GMP indicates strong demand for the shares, suggesting that investors expect the stock price to rise after listing. Conversely, a negative IPO GMP shows low demand, implying that the stock price may fall upon listing.

IPO GMP provides an early indication of investor sentiment about the company. However, it is not an official measure and does not guarantee the stock’s performance after listing.

Important Points to Consider About IPO GMP

  1. Indicator of Demand: IPO GMP reflects investor demand in the grey market. A high GMP indicates strong interest, while a low or negative GMP suggests weak interest.

  2. Unofficial Market: The grey market operates outside regulated stock exchanges. Trading here is based on trust and is not monitored by authorities.

  3. Price Fluctuations: GMP values can change frequently based on market sentiment, news about the company, or broader market conditions.

  4. No Guarantee of Listing Price: A strong GMP does not ensure a high listing price, as the actual stock performance depends on broader market factors and company fundamentals.

  5. Risk of Speculation: Grey market activities involve speculation, and GMP values may not always align with the company’s true valuation.

  6. Informal Nature: Since the grey market is unregulated, there is no legal recourse for disputes or defaults in trades.

  7. Investor Sentiment Gauge: GMP offers insights into how investors perceive the IPO’s prospects before it lists, but it should be used cautiously and not as the sole basis for investment decisions.

  8. Short-Term Indicator: GMP is primarily relevant before the IPO listing and may not reflect the stock’s long-term performance.

Investors should use IPO GMP as one of many tools to assess an IPO, keeping in mind its limitations and risks.

What is Grey Market Premium (GMP)?

Grey Market Premium (GMP) is the price difference between the issue price of shares in an Initial Public Offering (IPO) and the price at which these shares trade in the grey market.

The grey market is an unofficial platform where shares are bought and sold before the IPO is listed on a stock exchange. GMP reflects the perceived demand for the IPO shares and provides an early indication of investor sentiment.

A positive GMP means there is high demand for the IPO shares, suggesting that investors expect the share price to rise after listing. A negative GMP indicates low demand, implying that the share price might fall when the stock is listed.

Investors use GMP as a tool to gauge the potential listing performance of an IPO. However, it is not a formal or regulated metric and should not be the sole basis for investment decisions.

Factors Influencing IPO GMP

  1. Demand and Supply: High demand for IPO shares in the grey market increases the GMP. Low demand reduces it.

  2. Company Performance: Strong financials, growth potential, and a good track record of the company attract more interest and raise GMP.

  3. Industry Sentiment: Positive sentiment about the industry boosts GMP, while negative sentiment decreases it.

  4. Market Conditions: Bullish stock markets typically lead to higher GMP values. Bearish markets often result in lower GMP.

  5. Peer Comparisons: If competitors in the same sector perform well, the IPO’s GMP may increase due to positive expectations.

  6. Investor Confidence: Strong promoter backing, experienced management, and high-quality offerings increase confidence and raise GMP.

  7. News and Announcements: Positive news about the company or IPO can boost GMP. Negative news can reduce it.

  8. Subscription Levels: High subscription numbers, especially from institutional investors, can lead to higher GMP.

  9. Pricing of the IPO: If the IPO price is perceived as attractive or undervalued, the GMP is likely to be higher.

  10. Speculation: Speculative trading in the grey market can drive GMP up or down, regardless of company fundamentals.

Investors should analyze these factors carefully while considering IPO GMP as an indicator of potential listing performance.

How to Calculate Grey Market Premium (GMP)?

To calculate GMP, subtract the IPO issue price from the trading price of the shares in the grey market.

Formula:
GMP = Grey Market Trading Price – IPO Issue Price

Example:
If the grey market trading price is ₹250 and the IPO issue price is ₹200, the GMP is ₹50.

Are Grey Market Stocks Safe?

Grey market stocks are traded in an unofficial and unregulated market. Transactions rely on trust, and there is no legal recourse for disputes. Investors should be cautious as grey market trading involves risks like defaults or speculative price fluctuations.

 

How to Calculate Grey Market Premium (GMP)?

To calculate GMP, subtract the IPO issue price from the trading price of the shares in the grey market.

Formula:
GMP = Grey Market Trading Price – IPO Issue Price

Example:
If the grey market trading price is ₹250 and the IPO issue price is ₹200, the GMP is ₹50.

Are Grey Market Stocks Safe?

Grey market stocks are traded in an unofficial and unregulated market. Transactions rely on trust, and there is no legal recourse for disputes. Investors should be cautious as grey market trading involves risks like defaults or speculative price fluctuations.

How IPO GMP Works?

IPO GMP represents investor sentiment before the IPO is listed. A positive GMP indicates high demand, while a negative GMP shows low demand. It helps investors estimate the potential premium or discount on the listing price.

How Much GMP is Good for an IPO?

A good GMP depends on the IPO issue price and market sentiment. Generally, a higher GMP suggests strong demand and positive expectations for the listing price. However, GMP alone cannot guarantee listing success.

IPO GMP vs. Listing Price

GMP indicates grey market sentiment, while the listing price depends on official market factors like demand, subscription levels, and broader market conditions. A high GMP often leads to a strong listing price but is not a definitive predictor.

IPO GMP and Kostak

 

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