IPO GMP, Grey Market Premium, Latest IPO GMP, Kostak & Subject to Sauda 2023

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IPO GMP (IPO Grey Market Premium) indicates the price grey market operators are willing to pay for shares of a given IPO before listing. GREY market (also called gray market) is an informal setup used by traders to buy and sell shares and is not recognized by stock exchanges.

IPO Grey market premium and Kostak rate in Indian markets are determined on the basis of Subject To Sauda Secondary Market. The grey market premium of any IPO GMP represents the premium of its shares. Whichever IPO Of GMP has a higher premium is good on the day of IPO GMP 2023 listing Make money.

It is frequently used to estimate the listing price of public offerings because impending IPO GMP informs us about the premium someone is willing to pay for the relevant IPO. Although it is not always precise, GMP of various IPOs has reliably anticipated future listing prices. Positive SME IPO GMP results have recently caused the SME segment to see increased demand. However, in light of the steep drops in secondary markets, grey market activity and volumes have recently suffered. Subscription levels have significantly decreased as doubts about the rally’s durability have grown, effectively reflecting investor mood.

Indong Tea IPO GMP, Earthtahl IPO GMP, Agarwal Float IPO GMP, Hinduja Leland Finance IPO GMP, and many more types of IPOs are just a few of the NSE / BSE Upcoming IPO GMP Live that you can see through the Grey Market Premium or IPO Of GMP updates every day on this website. Follow us on Instagram, Facebook, Twitter, Telegram, YouTube, and other social media platforms for the most recent news and information.

IPO Grey Market Premium Live

IPO NameGMP (₹)Price (₹)Expected Gain
HMA Agro Industries235853.93%
Cyient DLM-%
ideaForge Technology57067271.43%
Veefin Solutions0820.00%
Cosmic CRF-1330-0.32%
Essen Speciality Films4010737.38%
Aatmaj Healthcare116418.33%
Greenchef Appliances168718.39%
Pentagon Rubber5707.14%
Cell Point81008%
Vilin Bio Med-130-3.33%

IPO Subject To Sauda and Kostak Rates:

IPO NameSubject To (₹)Kostak (₹)
HMA Agro Industries
IdeaForge3504000
Cosmic CRF
Cell Point
Vilin Bio Med
Greenchef Appliances25000
Essen Speciality25000
Aatmaj Healthcare10000
Pentagon Rubber

An unauthorised arrangement between an IPO investor and a stock broker known as a “IPO grey market transaction” enables investors to lock in profits before the stock listings. In this arrangement, brokers sell the shares assigned to IPO applications without moving the shares to their own accounts. This unwritten agreement between the parties depends solely on the mutual confidence between the investor and broker.

Important points about IPO GMP and grey market: 

The IPO grey market may experience rapid changes in price fluctuations. Making an investing decision solely based on grey market IPO rates is dangerous. For further information, please see our research and analysis department.
According to research, retail investors are easily swayed by market mood and hence are prone to overreacting, particularly when it comes to investing in initial public offerings (IPOs). Consider your wagers carefully!
Market intelligence is used as the source for IPO GMP rates. Please be aware that based on your location, market, and the dates of the IPO, these GMP rates may be different for you.
We don’t enable the purchase or sale of IPO forms or engage in any grey market trading.

What is IPO GMP (IPO Grey Market Premium)?

IPO Grey market premium, also known as IPO GMP, is an unofficial premium used to assess the value of the share premium listing for an initial public offering in the Indian market. Before an IPO and listing, this grey market premium of IPO. The grey market premium rises if there is considerable demand for that IPO, which boosts the grey market premium and provides investors with profitable profits. It is comparable to a market where investors set share prices based on supply and demand.

The IPO grey market is an unofficial structure that exists prior to the start date of the IPO and continues through the listing date. There are little differences between the primary and secondary markets in terms of the IPO premium, which varies daily based on IPO demand. It has been noted that GMP increases in larger markets and decreases in more restrained environments. Look no further than IPO Central if you feel the need to maintain an IPO watch.

Is Grey market illegal ?

No, buying Grey Market Premium is legal. It is not typically in the peoples’ possession. For SEBI Stock Exchange and Brokerage Platforms, it is not accessible. When the IPO is listed, no trading nor selling is authorised. Sebi is king. We give the investor what is listed.

How do I apply for GREY market ?

We are unable to do this since it is not legally available; nevertheless, we can invest in its initial public offering (IPO), but first you must register an account with a brokerage business that has been listed by SEBI before you can do so.

What is Kostak rate?

The Kostak rate is the sum an investor receives when they sell their IPO application on the black market. No matter how the IPO allotment status changes, this is the amount an investor will receive. An investor selling his application will receive this amount, for instance, if the kostak rate is INR 300, even if there is no allotted and even if the stock is sold at a discount to the allotment price.

What is Subject to Sauda?

Another phrase widely used in the black market to describe a sauda for purchasing a firm allotment application is “subject to.” In other words, this is the price purchasers are willing to pay for a share-allocated application. This sum is obviously far larger than Kostak. Even if the stock lists for less than the allocation price, the seller in this instance still receives this sum. The buyer assumes the risk of a discounted listing.

The sauda is cancelled in the event that there is no allocation. As one can see, there is a trade-off between the Subject to Sauda and Kostak trades; while investors might profit greatly in the latter, they receive nothing in the event of an allocation failure. When compared,profit by selling the application at kostak rates.

How to Calculate Grey Market Premium?

If a company’s IPO is set at 100 and its IPO Grey Market Premium is 75, it will be launched at 175 so that investors can receive up to IPO GMP 75% of the profit on the day of listing and if the investor is successful, they will receive the remaining 25% of the profit. If he sells his shares on the day they are listed, he makes money, and if he holds onto them for a while, it ends up being profitable in the long run.

How Do I Buy / Sell IPO Application in Grey Market?

The grey market is not officially affiliated with any individuals or organisations. On the basis of the IPO GMP, certain brokers buy and sell IPO applications on the Kostak Rates or Subject to Sauda Rates. Find local brokers who act as a middleman between buyers and sellers and trade IPO applications on the grey market. Before purchasing or selling, be aware of the rates.

IPO Grey Market Premium FAQs :

What is IPO Grey Market Premium?

The Grey Market premium shows IPO Listing Gains Premium Value and that is called IPO GMP.

What is limit of IPO Grey market premium (GMP)?

There is no limit of IPO Grey market premium, It is based on the demand of the shares. if the stocks have good demand before listing then they might open on higher profit. The IPO stocks have weak demand on the market then they might open at a negative price.

What is IPO Grey Market Premium Disadvantage?

The biggest disadvantage of the IPO grey market is that when the market’s sentiment changes, it is no public, if the IPO premium is working, then we face a huge loss.

What is IPO GMP Limit?

There is No IPO GMP Limit because he is the market trend and Investor Sentiment applicable.

How to Buy IPO Shares in Grey Market?

There is no official way to do this but we can buy IPO shares through dealers who deal in grey market.

Can I trade in the grey market?

No you can not trade in grey market as it is not an official way to trade.

Is Grey Market Kostak and Subjected to Sauda are different?

The Grey market Kostak is the premium you get irrespective of the allotment status. For example, if you sold your IPO application for a Kostak price of Rs 1200, you will get Rs 1200 for sure. No matter if you get an allotment or not.
The Grey market Subject to Sauda is the application premium that is applicable only if you get the allotment. For example, if you sell your IPO application in the grey market as Subject to Sauda for Rs 4500, you will get this money only if you get an allotment.

What is good GMP in IPO?

What is GMP? Grey market premium or GMP is a premium amount paid at which initial public offering (IPO) shares are traded before it is listed on the stock exchanges. For instance, LIC fixes its IPO price at Rs 90 per share and its IPO GMP is 50, then the organisation will get listed at Rs 140.90.

Is high GMP good?

However, knowing the GMP rate can help an investor predict at what price the IPO might be traded. Therefore, a high GMP may indicate that the price of shares in the IPO will also be high.

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