IPO GMP Today: Before investing in an IPO, all investors check the IPO GMP to know how much to invest in the company. The profit of any IPO is known through the grey market premium, that is, how much profit that company can give to the investors. The company whose grey market premium is poor, its profit is less.
All investors should know about the grey market premium of the IPO of some mainboard and SME exchange companies currently running. In this article, we have shared the possible data about how much GMP will be in the latest IPO. Every IPO sees fluctuations in GMP every day. We have mostly seen that the companies whose IPO performs well in the grey market premium subscriptions increase very fast, and those whose IPO is low have very few subscriptions.
Current IPO GMP Today with Estimated Listing Gain
| Current IPOs | IPO GMP | Price | Subject |
|---|---|---|---|
| Landmark Immigration | ₹12 | ₹72 | ₹15,000 |
| Kabra Jewels | ₹90 | ₹121 | ₹70,000 |
| Laxmi Dental | ₹125 | ₹428 | ₹3,000 |
| Standard Glass Lining | ₹80 | ₹140 | ₹5,500 |
| EMA Partners | ₹- | ₹124 | ₹- |
| Capital Infra Trust | ₹- | ₹100 | ₹- |
| Laxmi Dental | ₹165 | ₹428 | ₹4,000 |
| Fabtech Technologies | ₹77 | ₹85 | ₹90,000 |
| Indobell Insulations | ₹15 | ₹46 | ₹30,000 |
| Delta Autocorp | ₹117 | ₹130 | ₹90,000 |
| B.R. Goyal | ₹40 | ₹135 | ₹30,000 |
| Avax Apparels | ₹10 | ₹70 | ₹15,000 |
| Sat Kartar Shopping | ₹10 | ₹81 | ₹10,000 |
| Barflex Polyfilms | ₹– | ₹60 | ₹- |
| Kabra Jewels | ₹– | ₹128 | ₹- |
| Solar91 Cleantech | ₹100 | ₹195 | ₹- |
| Rosmerta Digital Services | ₹20 | ₹147 | ₹- |
Investors should note that high GMP increases investors’ interest in the company. Whenever a company with a high GMP gets listed on the stock exchange, investors see huge profits in it, but you should not buy stock only based on GMP because GMP is just an estimate of how the stock would perform at the time of listing. Before investing in any IPO, along with GMP (Grey Market Premium), you should also consider many other things like the company’s value, how much profit has been made, and how much the investment is.
What is IPO GMP?
IPO GMP, whose full name is Grey Market Premium. According to the Grey Market Premium, it is estimated how much profit we can get when listing. In the Grey Market Premium, investors have shared an estimated figure related to the issue price of the share and its listing price, which is usually taken from informal market trading. In the period before any company comes to the stock exchange, there is informal trading of IPO shares in which its shares are bought and sold, which happens entirely without the participation of the stock exchange company.
Grey Market Premium is a market where the IPO shares are sold even before they come to the stock exchange, and it is estimated how the stock will perform in the market. The importance of GMP in IPO is paramount for investors because we have seen that IPO investors first make their investments by looking at the Grey Market Premium.
We have already told you that no investor should make the entire investment by looking at GMP because it is just an estimate. GMP is only for the investor’s satisfaction with the stock’s performance after listing. Sometimes, we have seen losses in stocks with high GMP and profits in stocks with low GMP. So, it is not true that the stock with a reasonable grey market premium will also perform well at the time of listing.
Grey market premium is a good option for calculating profit and loss, but we advise investing in any stock only after proper research. Use GMP only as per estimate. For more information, you can look at the company’s fundamentals and then invest in its IPO.
Important Points to Consider about IPO GMP
- Transactions in GMP are informal.
- Grey market premium is an informal trading speculating on an IPO’s future performance.
- IPO GMP cannot be trusted entirely.
- Do not apply for IPOs based only on grey market premiums.
- Market experts and researchers determine GMP rates.
What is Grey Market Premium?
With the help of grey market premium, investors estimate how much profit will be made in the IPO and how much loss will likely be incurred. Grey market premium is the buy-sell market in which some reputed experts buy and sell shares before they are registered on the stock exchange. Through the grey market premium, we get an idea of what the market sentiment will be towards this stock at the time of listing.
The complete form of GMP is Grey Market Premium; it is used by investors in the Indian stock market who want to invest their money in an IPO. With the help of GMP, investors can estimate the estimated price at the time of listing. However, it is not at all that the price shown in GMP is always correct; most of the time, we get to know a lot of fluctuations in it.
So, if we talk about the calculation of IPO GMP, then we can do it like this: if a company launches an IPO of its stock at Rs 120, in which the GMP of that company’s share is shown to be higher by Rs 40, then we can assume that we may see a profit of around Rs 40 per share. But again we would like to tell you that you cannot consider this the actual price, it has seen changes many times. If the High net Worth Individual (HNI) and Qualified Institutional Buyers (QIB) subscription is high, we see prices around GMP.
What Factors are Influencing IPO GMP?
Many factors affect the grey IPO GMP, from the company’s business to the market conditions, everything affects the GMP. The most critical points that affect the grey market are as follows-
- Company Fundamentals: The most substantial aspect of a company’s fundamentals is its current position, its financial position, the company’s growth potential in the coming years, and the company’s experienced team, which has a positive impact on GMP. If the company’s statistics are good, the shares will make a lot of profit when listing.
- Market Conditions: The performance of the company in the market and the stock market’s performance at the time of IPO listing makes a lot of difference in the IPO GMP.
- Dynamics of Demand and Supply: The second most crucial factor in determining GMP is how many people have subscribed to the company’s IPO. If the subscription is high, then it is likely that the IPO will also perform well.
What is Kostak Rate?
The amount an investor uses to buy an IPO by applying in the IPO before the IPO listing. One can buy and sell the entire IPO application at the market price at their quotation. If someone has applied for 10 applications for an IPO, gets allotted 10 applications, and makes a profit of Rs. 1000 per application, he will get a profit of Rs. 1000 for the total 10 applications he can sell.
How to Calculate Grey Market Premium?
Let me tell all the investors that you can calculate the grey market premium this way. We have provided information here about how to calculate your GMP and share profit. If an investor has invested up to Rs 15,000 in any company’s IPO and paid Rs 407 for the third share and the GMP is Rs 40, then you have to calculate the share in this manner (407+40=447RS). You will get a profit of Rs 47 per share, which means that at the time of listing, the price of one share will be Rs 447.
Are Grey Market Stocks Safe?
It entirely depends on you because we cannot claim anything in this. After all, the grey market premium has sometimes proved to be wrong, so there is no guarantee that GMP is a reliable method for trading. With this, you can guess how the market is likely to move. If you invest by looking at the fundamentals of the company, then you will benefit.
How Do I Buy / Sell IPO Application in Grey Market?
There are no official people or businesses associated with GMP; there are just some brokers who deal at bracket rates based on IPO GMP; if you want to apply to GMP, you will have to find a local broker who acts as an intermediary between GMP buyers and sellers who trade in GMP.
Significance of IPO GMP
All investors are well aware of the importance of GMP. There is no need to talk about the role of GMP in the stock market and how it helps a fresh investor succeed. GMP is not always there, but we have seen that GMP probably provides the correct information whenever there is a high subscription to HNI and QBI.
IPO GMP means informal buying and selling of the shares before they are released on the stock exchange.
Calculating GMP is an easy task; if the company has fixed the price per share at Rs 200 and its GMP is Rs 100, then at the time of listing, we will get a profit of Rs 100, i.e., at the time of listing the share, will be listed at Rs 300.
No, it is not true that if GMP is high, there will be profit in IPO. If HNI and QBI subscriptions are high in the IPO, then it can be assumed that there will be profit in the IPO.
No, you should not invest in an IPO by just checking GMP, but you should look at all the essential fundamentals of the company.
If you want to check latest IPO GMP rates you need to save this page or check IPO GMP article on Growwstock.com on Google.
My name is Chirag Suthar, and I have been blogging for the last five years. Every day, I share the latest articles on my blog with all my users. On Groww Stock, I will provide you with all the information related to finance.
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