GMP is an unofficial premium at which IPO shares are traded in the grey market before
listing. It indicates expected listing gains. For example, if GMP is ₹50 and issue price
is ₹100, expected listing price is ₹150.
Is GMP a reliable indicator?
GMP gives a general market sentiment but is NOT a guaranteed indicator. Actual listing
prices can differ significantly from GMP predictions due to market conditions, overall
sentiment, and other factors.
How is GMP determined?
GMP is determined by demand and supply in the unofficial grey market. It's based on
traders' expectations about listing gains, company fundamentals, subscription data, and
overall market mood.
Can I trade in the grey market?
Grey market trading is unofficial and not regulated by SEBI. It involves significant
risk and is not legally protected. We provide GMP data for informational purposes only
and don't encourage grey market trading.
Why does GMP change frequently?
GMP fluctuates based on subscription numbers, market conditions, news about the company,
overall IPO market sentiment, and broader market indices. It can change multiple times a
day.
What does negative GMP mean?
Negative GMP indicates that the market expects the IPO to list below its issue price.
This usually happens when market sentiment is weak or the IPO is considered overpriced.
How to calculate expected listing price from GMP?
Expected Listing Price = Issue Price + GMP. For example, if issue price is ₹200 and GMP
is ₹80, expected listing price is ₹280. Remember, this is just an estimate.