Grey Market Premium, Grey market premium of IPO (Today)
IPO Grey Market premiums are given below. For more information about IPO and Grey market Premium, click on the IPO name. Check out the latest IPO GMP (Grey Market Premium) of R R Kabel IPO, Yatra Online IPO, SignatureGlobal IPO, EMS IPO, Balaji Speciality Chemicals IPO, EbixCash IPO, Jupiter Health Line Hospital IPO, and TATA Technologies IPO.
Grey Market Premium of Current IPOs (Today)
Updated on: 22-09-2023
| IPO Name | GMP | GMP in % | IPO Price |
|---|---|---|---|
| JSW Infrastructure | ₹- | ₹-% | ₹- |
| Manoj Vaibhav Gems | ₹- | ₹-% | ₹215 |
| SignatureGlobal IPO | ₹34 | ₹10% | ₹385 |
| Yatra Online IPO | ₹- | ₹-% | ₹142 |
| Zaggle Prepaid | ₹11 | ₹8% | ₹164 |
| SAMHI Hotels | ₹5 | ₹8% | ₹126 |
| R R Kabel IPO | ₹104 | ₹10% | ₹1035 |
| EMS IPO | ₹98 | ₹46% | ₹211 |
| Jupiter Life Line | ₹260 | ₹35% | ₹735 |
| Balaji Speciality Chemicals | ₹50 | ₹- | ₹ |
| EbixCash IPO | ₹ | ₹ | ₹ |
| Tata Technologies | ₹80 | ₹- | ₹- |
Grey Market Premium of IPOs
What is IPO Grey Market?
Grey Market
IPO grey market is an unofficial market, where the shares of IPO are bought and sold outside the stock exchange before they are listed on the stock exchange. Stock exchanges or SEBI are not involved in any kind of transactions that take place in the grey market. And there is no regulation or control over those transactions. There are some dealers and operators in the grey market who act as an intermediary between the buyer and the seller.
There are two types of transactions in the grey market. By transacting the shares which have been allotted earlier and are not listed on the stock exchange. Second, by transacting the shares which have not been allotted yet.
What is Grey Market Premium (GMP)
Grey Market Premium (GMP)
The price at which the IPO shares are exchanged in the grey market is called the grey market premium of that share. In simple language, the price band of a share in an IPO, which expresses the willingness to buy the share at a higher price in the grey market, is called the grey market premium of that share.
Let us understand it through an example:
If the value of one share in the IPO of XYZ company is ₹100. And in the grey market, some buyers are ready to buy it for ₹ 150 then the grey market premium (GMP) of the shares of XYZ company will be ₹ 50. That is, the buyer is ready to pay ₹ 50 more than the share price, because he thinks that the share may get listed at ₹170 on the day of listing on the Stock Market, making a profit of ₹20 per share.
But it is a double-edged sword that the stock may get listed at ₹120 due to which it will lose ₹30.
In the grey market, the stock price is constantly fluctuating up and down, so you should take the grey market premium only as an indicator. We do not recommend you to trade in the grey market ever. Trading in the grey market can be risky for you as stock exchanges or SEBI are not involved in them.
What is Kostak Rate?
Kostak Rate
The Kostak rate is the fee at which an investor sells his IPO application to a buyer in the grey market. This is the money he gets in both cases i.e. whether the shares are allotted or not, he gets this money.
Let us understand this with an example:
Suppose XYZ IPO is oversubscribed many times and the chances of getting IPO allotment is very less than if you sell XYZ IPO application to a buyer in the grey market for ₹500 then it is called the Kostak rate of XYZ IPO. You will get ₹500 even if you are not allotted shares on that application. This ₹500 is called the Kostak rate of that IPO.
What is Subject to Sauda?
Subject To Sauda
The money that the applicant receives by selling his allotted IPO application is said to be subject to Sauda. This deal will be valid only if you get an allotment if the applicant does not get an allotment then the deal will be canceled.
If the applicant and the customer agree in the grey market, then the applicant sells his IPO application to the customer for some money. If the shares are not allotted to the applicant, the transaction does not take place. The applicant who sells the application to the customer at a price is called the subject to Sauda.
Let's understand by example:
You sell your IPO application in the grey market for ₹ 5000, if you are allotted shares on that application, then those shares will belong to the customer, and in return, you get ₹ 5000 which is called the subject to Sauda. There is a condition in this that you get ₹ 5000 only if you are allotted shares.
If the seller does not get any stock during the IPO process, the deal is canceled.
Stock Average Calculator FAQs
What is Grey Market?
IPO grey market is an unofficial market, where the shares of IPO are bought and sold outside the stock exchange before they are listed on the stock exchange. Stock exchanges or SEBI are not involved in any kind of transactions that take place in the grey market.
What is Grey Market Premium?
The price at which the IPO shares are exchanged in the grey market is called the grey market premium of that share. In simple language, the price band of a share in an IPO, which expresses the willingness to buy the share at a higher price in the grey market, is called the grey market premium of that share.
What is Kostak Rate?
The Kostak rate is the fee at which an investor sells his IPO application to a buyer in the grey market. This is the money he gets in both cases i.e. whether the shares are allotted or not, he gets this money.
What is Subject to Sauda?
The money that the applicant receives by selling his allotted IPO application is said to be subject to Sauda. This deal will be valid only if you get an allotment if the applicant does not get an allotment then the deal will be canceled.
!Note
We are not involved in grey market trading in any way. And does not provide the facility of buying or selling of IPO form.
IPO gray market is not regulated or controlled by the exchanges or SEBI due to which you are likely to be cheated which is a risk factor.
Reference to IPO Gray Market Premium (IPO GMP) is valid only for the date specified in the header, we are not involved in the buy or sell off the IPO form.
Do not decide to subscribe to the IPO solely on the basis of grey market premium, as it can change at any time before the listing. Do research about the fundamentals and financials of the companies before subscribing.
Thanks For Visiting & Happy Investing.
1 Comments
Well explain about GMP (Grey Market Premium), Kostak rate and Subject to sauda rate. Keep it up.
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