What is IPO GMP (grey market premium)?

GMP stands for grey market premium: the extra amount people are willing to pay, unofficially, for an IPO's shares before they list on the stock exchange.

What GMP means

Before an IPO lists, a small unofficial market sometimes forms in which people agree to buy or sell the shares that will be allotted. The price quoted there, above or below the IPO's issue price, is the GMP.

If an IPO's issue price is ₹100 and its GMP is ₹20, that unofficial market is pricing the shares at about ₹120, which hints at a listing gain of around 20%. A GMP of zero means no premium is expected, and it can be negative when the market expects a listing below the issue price.

How to read GMP as a percentage

Divide the GMP by the issue price (use the upper end of the price band while bidding is open). A ₹30 GMP on a ₹150 issue price is 20%.

Adding the GMP to the issue price gives a rough guess of the listing price. It is only a guess: the actual listing price is set by the exchange's opening auction and can land well above or below it.

Why GMP is unofficial and often wrong

The grey market is not run or regulated by SEBI or the stock exchanges. Quotes come from private dealers, differ between sources, and can move within hours on rumours, the market's mood or the news.

Subscription numbers, the stock market's direction on listing day and the size of the issue all affect how an IPO really lists. SME IPOs trade thinly, so their GMP can be especially far from the outcome. An IPO with a high GMP can still list flat or lower, and a low GMP does not rule out a gain.

How IPO Khata shows GMP

IPO Khata shows each IPO's GMP in rupees and as a percentage of the upper price band, taken from InvestorGain and refreshed every minute, together with the subscription by category. Once an IPO lists, the page keeps the last GMP next to the actual listing price, so you can see how close it was.

It is information, not advice. Do not decide to apply, or to sell, on GMP alone.

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See today’s IPOs with live GMP and subscription

Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.