What’s Grey Market premium?
“The “grey market price” or “IPO GMP” is a term that people employ to describe the IPO market to determine the value that the IPO could be listed on. The grey market isn’t official however, investors who are looking at the price of the grey market on an IPO to determine the guaranteed gain for the stock.
Find the most up-to-date IPO analysis and estimate grey market rates below:
|Name of the IPO||GMP||Kostak||Subject|
|Latent View Analytics||Rs350||Rs350||Rs20000|
Let’s find out how we can determine the estimated price for listing after adding the cost of a premium. If the gray market says the cost for an IPO is around Rs100, and the IPO price is in the region of Rs200, The estimated listing price is around 300 rupees. According to the calculations,, the listing gains is 50% of what is the IPO price.
The price for an IPO may differ from the estimate price for listing that is suggested in the gray market due to the bear market or bear market, or the market demand for the company’s shares.
Are stocks in the Grey Market safe?
It’s up to the broker or trader, and we suggest that you do not take risks. If you’re trading on the grey market , you is entirely at risk.
Important Factors to Take into Account concerning IPO GMP:
- The transactions in the grey market are not official and there is the result of an interaction between IPO stockbrokers and investors. It is based on trust between the two parties.
- Check out our IPO analysis before submitting for an IPO.
How do I buy or Sell IPO Application on Grey Market?
There are no officially recognized people or companies that are connected to the gray market. Brokers buy as well as sell IPO applications using Kostak Rates or subject to Sauda Rates that are based upon their IPO GMP.
Market Premium: Grey Market Premium:
|Name of IPO||Price||GMP||List|
|Aditya Birla AMC||Rs712||Rs25||Rs715|
|Aptus Value Housing||Rs353||Rs0||Rs333|
How do I Calculate How to Calculate Grey Market Premium?
The IPO GMP also known as Grey Market Premium is cost that is traded on the grey market prior to the IPO listing procedure. The calculation is made by analyzing the performance of the company, its demand on the market for grey goods, as well as the likelihood of the acceptance.
What is Kostak Rate is it same as Kostak?
A Kostak rates is the price an investor is required to pay to the seller of an IPO application prior to IPO listing. When the market is reacted to by the grey market, to the Kostak rates react the same in the same way. You can purchase and sell their complete IPO application using Kostak rates that are not in the market and then fix their profits. The Kostak rates will determine if to the investor whether they receive the IPO allotment or not. the buyer must pay Kostak rate for IPO.
What is subject to Sauda?
Based on the Kostak rate, the subject to Sauda on the application is that investors receive when they get an allotment of money of the IPO Application. If one decides to purchase or sell the IPO application in this subject, that is possible to receive the amount stated if they receives the allotment or else sauda is cancelled.
- What is GMP in IPO
The “grey market price” or “IPO GMP” is a term that people employ to describe the IPO market to determine the value that the IPO could be listed on. The grey market isn't official however, investors who are looking at the price of the grey market on an IPO to determine the guaranteed gain for the stock. The grey market operates prior to the IPO listing, and in the time period between IPO beginning date until the allotment date.