IPOs
What is GMP (Grey market premium)?
Also called: Grey market premium, IPO GMP
Hinglish mein padhein: IPO mein GMP kya hota hai?
GMP is the unofficial premium at which IPO shares trade informally before listing. It is not regulated and often wrong.
If an IPO's price is ₹100 and the GMP is ₹20, grey-market traders are pricing it at about ₹120 on listing. Grey-market deals are outside the exchange system and have no investor protection.
GMP can swing sharply in the last days before listing. Treat it as crowd sentiment, never as a forecast.
Related terms
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.
- Listing gainsListing gains are the profit made if an IPO share opens above its issue price on the first day of trading.
- IPO subscriptionSubscription shows how many times the shares on offer have been bid for, by category — QIB, NII and retail.