Grey Market Premium
GMP, or “Grey market premium,” is a premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchange. The Grey market starts after the IPO date and price band are announced. It is calculated based on the demand of a company that is coming up with an IPO.
Today’s IPO GMP
Main Board IPO
SME IPO
FAQ’s
GMP has a positive or negative impact on listing because, basically, through GMP, investors measure the interest of the public in a specific IPO.
GMP cannot be a deciding factor for investing in an IPO. Therefore, you should not apply for an IPO just because it has good GMP. In general conversation, you can compare GMP with a pinch of salt. GMP, like salt, can be a factor in deciding whether or not to invest in an IPO. If you want to apply for an IPO, you should not apply just because the GMP is good. You should analyse other factors of the company, like its profile, its revenue, its earnings, etc.