When a company decides to go public through an Initial Public Offering (IPO), investors often look for ways to gauge the potential performance of the stock before it officially lists on the exchange.
Three important terms that come into play during this pre-listing period are IPO GMP (Grey Market Premium), Latest IPO Grey Market Premium, and Kostak Rates. Letโs explore these terms in detail to understand how they influence investor decisions.
Current IPOs | IPO GMP | Price | Gain | Date | Subject | Type |
---|---|---|---|---|---|---|
Sambhv Steel Tubes | โน15 | โน82 | 18% | 25-27 June | โน1,900 | Mainboard |
Indogulf Cropsciences | โน14 | โน111 | 13% | 26-30 June | โน1,200 | Mainboard |
Crizac | โน- | โน245 | -% | 2-4 July | โน- | Mainboard |
Travel Food Services | โน- | โน- | -% | 2025 | โน- | Mainboard |
Anthem Biosciences | โน- | โน- | -% | 2025 | โน- | Mainboard |
NSDL | โน- | โน- | -% | July 2025 | โน- | Mainboard |
AJC Jewel | โน4 | โน95 | 4% | 23-26 June | โน3,600 | BSE SME |
Icon Facilitators | โน5 | โน91 | 5% | 24-26 June | โน4,600 | BSE SME |
Shri Hare-Krishna Sponge Iron | โน- | โน59 | -% | 24-26 June | โน- | NSE SME |
Abram Food | โน8 | โน98 | 8% | 24-26 June | โน7,300 | BSE SME |
Supertech EV | โน1 | โน92 | 1% | 25-27 June | โน900 | BSE SME |
Suntech Infra Solutions | โน33 | โน86 | 38% | 25-27 June | โน40,100 | NSE SME |
Rama Telecom | โน- | โน68 | -% | 25-27 June | โน- | NSE SME |
PRO FX Techs | โน2 | โน87 | 2% | 26-30 June | โน2,400 | NSE SME |
Ace Alpha Tech | โน26 | โน69 | 38% | 26-30 June | โน39,500 | BSE SME |
Valencia India | โน21 | โน110 | 19% | 26-30 June | โน19,200 | BSE SME |
Moving Media Entertainment | โน20 | โน70 | 29% | 26-30 June | โน30,400 | NSE SME |
Neetu Yoshi | โน26 | โน75 | 35% | 27-1 July | โน31,600 | BSE SME |
Adcounty Media India | โน44 | โน85 | 52% | 27-1 July | โน53,500 | BSE SME |
Marc Loire | โน6 | โน100 | 6% | 30-2 July | โน5,500 | BSE SME |
Cedaar Textile | โน10 | โน140 | 7% | 30-2 July | โน7,600 | NSE SME |
Pushpa Jewellers | โน28 | โน147 | 19% | 30-2 July | โน21,300 | NSE SME |
Silky Overseas | โน16 | โน161 | 10% | 30-2 July | โน9,700 | NSE SME |
Vandan Foods | โน- | โน115 | -% | 30-2 July | โน- | BSE SME |
Cryogenic OGS | โน- | โน47 | -% | 3-7 July | โน- | BSE SME |
White Force | โน- | โน76 | -% | 3-7 July | โน- | NSE SME |
Meta Infotech | โน- | โน161 | -% | 4-8 July | โน- | BSE SME |
Chemkart India | โน- | โน248 | -% | 7-9 July | โน- | BSE SME |
Kenrik Industries | โน- | โน25 | -% | 29-6 May | โน- | BSE SME |
Wagons Learning | โน-2 | โน82 | 6% | 2-6 May | โน5,000 | BSE SME |
Manoj Jewellers | โน- | โน54 | -% | 5-7 May | โน- | BSE SME |
Infonative Solutions | โน14 | โน79 | 17.72% | 28-3 Apr | โน- | BSE SME |
Identixweb | โน4 | โน54 | 7.41% | 26-28 March | โน- | BSE SME |
ATC Energies | โน21 | โน118 | 17.8% | 25-27 March | โน- | NSE SME |
Desco Infratech | โน8 | โน150 | 13.33% | 26-27 March | โน- | BSE SME |
Active Infrastructures | โน1 | โน181 | 0.55% | 21-25 March | โน- | NSE SME |
Shri Ahimsa Naturals | โน19.5 | โน119 | 8.4% | 25-27 March | โน- | NSE SME |
Retaggio Industries | โน- | โน25 | -% | 27-2 Apr | โน- | BSE SME |
Spinaroo Commercial | โน- | โน51 | -% | 28-3 Apr | โน- | BSE SME |
Super Iron Foundry | โน3 | โน108 | 2.78% | 11-13 Mar | 13700 | BSE SME |
Divine Hira Jewellers | โน15 | โน90 | 16.67% | 17-19 Mar | โน- | NSE SME |
Rapid Fleet | โน- | โน192 | -% | 21-25 Mar | โน- | NSE SME |
Grand Continent Hotels | โน- | โน113 | -% | 20-24 Mar | โน- | NSE SME |
Aten Papers | โน- | โน96 | -% | 28-2 Apr | โน- | BSE SME |
NSDL IPO | โน- | โน- | -% | 2025 | โน- | Mainboard |
Arisinfra Solutions | โน100 | โน- | 0% | 2025 | โน- | Mainboard |
NAPS Global | โน- | โน90 | -% | 4-6 Mar | โน- | BSE SME |
PDP Shipping | โน- | โน135 | -% | 10-12 Mar | โน- | BSE SME |
Paradeep Parivahan | โน- | โน98 | -% | 17-19 Mar | โน- | BSE SME |
Solar91 Cleantech | โน- | โน- | -% | 2025 | โน- | BSE SME |
Rosmerta Digital | โน- | โน- | -% | 2025 | โน- | BSE SME |
What is IPO GMP (Grey Market Premium)?
IPO GMP, also known as the Grey Market Premium, is the unofficial or unregulated market where IPO shares are bought and sold before they are listed on the stock exchange. Investors who wish to purchase shares in the IPO may choose to trade these shares in the grey market for a premium price or at a discount.
- Grey Market Premium (GMP) refers to the difference between the expected listing price and the IPO issue price. If the GMP is high, it generally indicates positive market sentiment and a high chance of the IPO listing at a higher price.
- Example: If an IPO is priced at โน100 and the GMP is โน20, the market expects the stock to list at โน120. If the GMP is negative or zero, it suggests a lack of enthusiasm for the IPO or concerns over its performance.
What is the Latest IPO Grey Market Premium?
The latest IPO grey market premium refers to the current premium value associated with a specific IPO in the grey market. This value changes constantly and is a reflection of investor sentiment towards that IPO.
- Investors and traders keep a close eye on this premium to gauge how well the market perceives the IPO.
- A positive GMP indicates optimism, while a negative GMP reflects pessimism or concerns about the company’s valuation.
Note: It is essential for investors to track the latest IPO GMP values to make informed decisions before the stockโs official market debut.
What are Kostak Rates?
Kostak rates are another important consideration in the IPO market. These rates are associated with the buying and selling of IPO applications in the grey market.
- Kostak rate is the price paid for the right to subscribe to the IPO. Instead of waiting for the listing day, some investors buy and sell IPO application rights at a premium in the grey market.
- Investors who donโt have the time or inclination to participate in the IPO process may sell their application rights at the Kostak rate to others willing to take the risk.
Example: If the Kostak rate for a particular IPO is โน5,000, an investor willing to purchase the application rights can pay โน5,000 for the chance to subscribe to the IPO.
How to Use GMP and Kostak Rates to Your Advantage
While IPO GMP and Kostak rates can provide valuable information, itโs important to remember that they are not foolproof indicators of IPO performance. Many factors, such as market conditions, company fundamentals, and overall economic sentiment, influence the actual listing price of an IPO.
- Research Thoroughly: Always combine the GMP and Kostak rates with fundamental analysis of the company, its prospects, and the market conditions.
- Risk Consideration: Trading in the grey market can involve high risks, as the future performance of an IPO may not align with the GMP or Kostak rate.
Conclusion
In summary, understanding IPO GMP (Grey Market Premium), Latest IPO Grey Market Premium, and Kostak rates can help investors make informed decisions about IPO investments. Keep a close watch on these metrics as part of your due diligence, but also remember to assess the companyโs fundamentals before diving in.
With the right knowledge and strategy, you can navigate the grey market successfully and potentially make profitable investments in IPOs.
IPO GMP and Grey Market Premium FAQs:
What is IPO GMP?
IPO GMP (Grey Market Premium) is the difference between the expected listing price and the IPO issue price, indicating market sentiment toward the IPO.
What is the Latest IPO GMP?
The latest IPO GMP reflects the current premium value for a specific IPO in the grey market, showing investor expectations before the stock lists.
What are Kostak Rates?
Kostak rates are the prices for buying or selling IPO application rights in the grey market, allowing investors to trade before the IPOโs official listing.
Why are GMP and Kostak Rates Important?
Both metrics provide insights into market sentiment, helping investors gauge the potential performance of an IPO before its official debut.
How to Use GMP and Kostak Rates?
Track GMP and Kostak rates as part of your research strategy, but also consider other factors like company fundamentals and market conditions.