Q1. What is IPO GMP (Grey Market Premium)?
IPO GMP means Grey Market Premium. It is the extra price at which IPO shares are traded in the unofficial market before listing. It helps investors estimate the expected listing gain or loss of an IPO.
Q2. How is IPO GMP calculated?
IPO GMP is calculated based on demand and supply of IPO shares in the grey market. For example, if an IPO price band is ₹200 and GMP is ₹50, then the expected listing price may be around ₹250.
Q3. Is IPO GMP reliable for investment decisions?
IPO GMP gives an early indication of investor sentiment, but it is not always 100% accurate. Final listing depends on market conditions, subscription numbers, and overall demand.
Q4. What is IPO Kostak Price?
IPO Kostak Price is the amount paid by an investor to buy the rights of an IPO application before allotment. It is useful when someone wants to sell their IPO application in the grey market.
Q5. What is Subject to Sauda in IPO?
Subject to Sauda is the price agreed upon for an IPO application if shares are allotted. It means the deal is valid only if the IPO shares are actually allotted.
Q6. Where can I check the latest IPO GMP today?
You can check the latest IPO GMP updates for Mainboard and SME IPOs on this page. We update GMP, Kostak, and Subject to Sauda rates regularly for upcoming IPOs.
Q7. Does a high GMP guarantee listing gains?
No. A high GMP may indicate strong demand, but listing gains are not guaranteed. Market sentiment, company fundamentals, and overall market trend also play an important role.
Q8. Should I apply for IPO only based on GMP?
No. GMP should be used as just one indicator. Investors should also check company fundamentals, financials, valuation, and growth prospects before applying.