IPO Grey Market Premium: Upcoming Latest IPO GMP LIVE DATA & Kostak Rates

IPO Grey Market Premium & Rates, Upcoming IPO GMP Detailed Guide

Hello Viewers,

You guys are already well versed with What is IPO? If you have been investing in IPO for quite a time. You might have heard quite often that the Upcoming IPO is quoting at a grey market premium or at a grey market discount.

Our today’s post is centered around the IPO grey market.

“LATEST IPO GREY MARKET PRICE (GMP) & UPCOMING PREMIUM & KOSTAK RATES”

You must be wondering regarding what is the grey market for IPO? or what does the grey market mean? All your desired queries will be sorted through this post.

The grey market of IPO is also referred to as IPO gray market. Stay tuned with us till the end to learn about Grey market IPO & Grey market premium of IPO.

So without any further adieu let’s get started!

What is the Grey Market IPO?

The IPO grey market is the platform where buying and selling are done outside the authorized authority or channels.

It is an unofficial way of trading the company’s sharer before they are issued in the initial public offering.

In other words, the term grey market refers to any type of industry that is operating in questionable legal status.

Here are some FAQs on the IPO grey market.

So let’s take a read

What is Grey Market Premium (GMP)?

Grey Market Premium is something that is easy to understand. It is the premium amount at which shares and applications are bought and sold before they are available on the stock exchange.

The IPO market is streaming at high today. The NSE and BSE IPO grey market premium has a significant role in determining the subscription.

Grey Market Premiums are also attached with words ‘Buyer’ or ‘Seller’. They tell the price either at which buyers are willing to buy shares or the price at which sellers are willing to sell their IPO shares.

Dear Friends the grey market premium is an over the counter or unofficial market. Here the new shares or the shares of the company bringing the IPO are bought and sold even before their listing on any of the exchanges.

In fact, the grey market assists in price discovery of the stock.

The premium can be positive and negative depending on the demand and supply of shares. If the premium is high, more investors will apply for IPO. On the other hand, if the premium is low or negative, fewer investors will apply for the IPO.

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These are not actual shares of the IPO But something like unofficial towards the IPO.

Latest Grey Market Premium Today

(As On 2021)
Here are the latest IPO grey market premium rates.

IPO Company IPO Date Price Band Lot Size GMP Kostak
ABSL AMC IPO GMP SEP 29, 2021 ₹695 to ₹712 20 27 ₹300
PARAS DEFENCE IPO GMP SEP 21, 2021 ₹165 to ₹175 85 235 ₹300
Sansera Engineering IPO GMP SEP 14, 2021 ₹734 to ₹744 20 64 ₹250
Vijaya Diagnostic IPO GMP SEP 01, 2021 ₹522 to ₹531 28 -5
AMI ORGANICS IPO GMP SEP 01, 2021 ₹603 to ₹610 24 150
Chemplast Sanmar IPO GMP AUG 10, 2021 ₹530 to ₹541 27 -10
Nuvoco IPO GMP AUG 09, 2021 ₹560 to ₹570 26 -10
CarTrade IPO GMP AUG 09, 2021 ₹1585 to ₹1618 9 105
Windlas Biotech IPO GMP AUG 04, 2021 ₹448 to ₹460 30 90
Exxaro Tiles IPO GMP AUG 04, 2021 ₹118 to ₹120 125 5
KRSNAA Dignostics IPO GMP AUG 04, 2021 ₹933 to ₹954 15 270
DEVYANI IPO GMP AUG 04, 2021 ₹86 to ₹90 165 55
ROLEX RINGS IPO GMP JULY 28, 2021 ₹880 to ₹900 16 405 ₹400
Glenmark Life Sciences IPO GMP JULY 27, 2021 ₹695 to ₹720 20 81 ₹350
TATVA CHINTAN IPO GMP JULY 16, 2021 ₹1073 to ₹1083 13 1140 ₹600
ZOMATO IPO GMP JULY 14, 2021 ₹72 to ₹76 195 23 ₹600
CLEAN SCIENCE TECHNOLOGY IPO GMP JULY 07, 2021 ₹880 to ₹900 16 620 ₹1100
GR INFRAPROJECTS IPO GMP JULY 07, 2021 ₹828 to ₹837 17 540 ₹600
INDIA PESTICIDES IPO GMP JUNE 23, 2021 ₹290 to ₹296 50 61 ₹250
KIMS Hospital IPO GMP JUNE 16, 2021 ₹815 to ₹825 18 120 ₹N/A
DODLA DAIRY IPO GMP JUNE 16, 2021 ₹421 to ₹428 35 82 ₹250
Sona Comstar IPO GMP JUNE 14, 2021 ₹285 to ₹291 51 2 ₹N/A
SHYAM METALICS IPO GMP JUNE 14, 2021 ₹300 to ₹306 45 125 ₹500
Lodha Developers IPO GMP APR 07, 2021 ₹483 to ₹486 30 10 ₹N/A
Barbeque Nation IPO GMP MAR 24, 2021 ₹498 to ₹500 50 ₹N/A ₹N/A
Suryoday BANK IPO GMP MAR 17, 2021 ₹303 to ₹305 49 Discount ₹N/A
Nazara Technologies IPO GMP MAR 17, 2021 ₹1100 to ₹1101 13 700 ₹N/A
Kalyan Jewellers IPO GMP MAR 16, 2021 ₹86 to ₹87 172 Discount 250
CraftsMan IPO GMP MAR 15, 2021 ₹1488 to ₹1490 10 33 ₹N/A
LAXMI ORGANICS IPO GMP MAR 15, 2021 ₹129 to ₹130 115 65 400
ANUPAM RASAYAN IPO GMP MAR 12, 2021 ₹553 to ₹555 27 68 400
EaseMyTrip IPO GMP MAR 8, 2021 ₹186 to ₹187 80 150 ₹N/A
MTAR IPO GMP MAR 3, 2021 ₹574 to ₹575 26 495 450
HERANBA IPO GMP FEB 23, 2021 ₹626 to ₹627 23 230 400
RailTel IPO GMP FEB 16, 2021 ₹93 -94 155 15 300
NURECA IPO GMP FEB 15, 2021 ₹396 to ₹400 35 70 ₹N/A
Brookfield REIT IPO FEB 03, 2021 ₹274 -275 200 0 0
IRFC IPO JAN 18, 2021 ₹25 -26 575 0.60 0
Stove Kraft IPO JAN 25, 2021 ₹385 38 60 0
Indigo Paints IPO JAN 20, 2021 ₹1490 10 850 800
Home First IPO JAN 21, 2021 ₹455 28 170 350
Antony Waste IPO GMP DEC 21, 2020 ₹313 -315 47 120 200
Bectors Food IPO GMP DEC 16, 2020 ₹250 -300 50 210 450
Burger King IPO GMP DEC 2, 2020 ₹59 -60 250 50 350
Gland Pharma IPO NOV 09, 2020 ₹1490 – 1500 10 140 1000
Equitas Small Finance Bank IPO OCT 20, 2020 ₹32 to ₹33 450 Discount 0
Mazagon Dock IPO Sep 29, 2020 ₹135 to ₹145 103 Rs. 100/share 350
UTI AMC IPO Sep29, 2020 ₹552 to ₹554 27 Discount 800
LIKHITHA INFRA IPO Sep 29, 2020 ₹117 to ₹120 125 Rs. 10/share 900
Angel Broking IPO Sep 22, 2020 ₹ 305 – 306 49 Discount 100
CHEMCON IPO Sep 21, 2020 ₹338 – ₹340 44 Rs. 390/share 900
CAMS IPO Sep 21, 2020 ₹1229 – ₹1230 12 Rs. 315/Share 900
Route Mobile IPO Sep 09, 2020 ₹345 – ₹350 40 Rs. 250/share 900
Happiest Minds IPO Sep 07, 2020 ₹165 – ₹166 90 Rs. 125/share 500
Mindspace REIT IPO July 27, 2020 ₹274 – ₹275 200 ₹200 0
Rossari Biotech IPO July 13, 2020 ₹423 – ₹425 35 Rs. 5000 5000
SBI Cards IPO Mar 05, 2020 ₹750 – ₹755 19 Rs. 250 4000
NCDEX IPO MAY 2021 ₹ 250 – ₹ 300 Rs. 1000 3000
LIC IPO June 2021 ₹ – Rs. 1000 9000
UTI AMC IPO July 2020 Rs. Rs. 200 4000
Prince Pipes IPO Dec 18 – Dec 20, 2019 Rs. 167 – 168 Rs. 20 400
Ujjivan Small Finance Bank IPO Dec 02 – Dec 04, 2019 Rs. 36 – 37 Rs. 200 400
CSB Bank IPO NOV 22 – NOV 26, 2019 193 – 195 Rs. 150 1000
IRCTC IPO SEP 30 – OCT 03 2019 315 – 320 Rs. 150 1000
Spandana Sphoorty Financial IPO 05 – 07 Aug 19 853 – 856 Rs. 15 450
Affle India LTD IPO 29 – 31 July 19 740 – 745 Rs. 190 250
Sterling & Wilson IPO 2019  – Rs. 150
HDB Financial IPO Grey Market Price 2019 1100 – 1200 Rs. 300
IndiaMart IndMesh IPO 24 – 26 June 970 – 973 Rs. 50 – 60
Neogen Chemicals IPO 24 – 26 Apr 212 – 215 Rs. 25 – 30
Polycab India IPO 5 – 9 Apr 533-538 INR 80 INR600
Metropolis Healthcare 3 – 5 Apr 877-880 INR 50 INR150
Rail Vikas Nigam IPO 29 Mar – 3 Apr 17-19 INR 1
Embassy Office Parks IPO 18 – 20 Mar 17-19 INR 300
Patanjali IPO Apr INR INR1
Muthoot Microfin IPO Apr INR INR1
Mazagon Dock Apr INR INR1
Lodha Developers Apr INR INR1

So, let us understand this with the help of an example

Example of Grey Market Premium

Here, we will take two different situations.

  • Suppose the issue price of Reliance Nippon is Rs.250. Grey market premium of Reliance Nippon is Rs.50. In the given situation, the premium is positive. Because of a positive premium, the buyers are ready to purchase the shares of Reliance Nippon at Rs. 250 + Rs. 50 = Rs. 300
  • Suppose, in this situation the grey market premium of Reliance Nippon is Rs. -20. The issue price is Rs. 250.  Since the grey market premium here is negative, it means that the sellers are ready to sell the shares at a discount of Rs. 20 i.e. Rs. 250 – Rs. 20 = Rs. 230
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The fluctuation in the premium keeps on happening. Until the shares are listed for trading on the exchange, action in the grey market premium price continues. In addition, an investor can also take the delivery of shares by purchasing the shares of the IPO company on a listing day.

Disclaimer:

– IPO Grey Market Premium (IPO GMP) mention is valid for the specific date as mentioned in the header.
– We are not buying and selling IPO forms on IPO Grey Market.
– Kostak Rate is the premium one gets by selling his/her IPO application (in an off-market transaction) to someone else even before allotment or listing of the issue.
– Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamental of the companies.
– This is only coverage of News related to Grey Market . We don’t deal in Grey market premium, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.

What is Kostak?

Kostak Rate is the premium one gets by selling his/her IPO application (in an off market transaction) to someone else even before allotment or listing of the issue.

Is the Grey market a part of the IPO market?

The grey market is an unofficial market whereas on the other hand IPO is the authorized and recognized medium of raising funds in the market within the SEBI guidelines.

So the IPO market and the IPO grey market do not have any official relationship. You must be well known regarding what is IPO but it is also very important to know about the grey market in IPO.

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Why do IPOs trade in the grey market before listing?

Firstly, I would like to tell you that the grey market is not an official platform where interested traders can bid and offer shares of the forthcoming IPO.

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What are Kostak rates?

A kostak rate is an amount in which one pays for the IPO before the IPO is actually listed on the stock market.

It is a premium one gets by selling the IPO in the grey market.

It is a colloquial word for the prices of an application before the actual issue or the allotment.

Minor difference between Kostak and GMP.

What is Subject to Sauda?

If someone buys an IPO on the subject to sauda price this means they will get the said amount In this one cannot fix their profit as it depends on the allotment. Again if one gets an allotment and he or she sold the application around Rs.10000 and the profit goes high on listing day around Rs.15000 then one should pay Rs.5000 to the guy who bought the application.

In simpler words, it is a kind of deal in the IPO grey market in India. Unofficially, an investor can sell an IPO Application to a buyer at an agreed price (Kostak Rate) before IPO Shares are listed in the stock market. If the seller gets an allotment, he will get Rs 5000.

Who all are the interested parties in the grey market?

  • Retail Investors– The grey market is indicative of the post listing performance
  • HNI investors– It gives them an idea regarding the appetite for the stocks
  • IPO financiers– The grey market provides them an idea regarding whether the financing in IPO is a lucrative business proposal.
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Does SBI regulate the grey market?

As stated above, the Grey market is not an official platform that operates outside the ambit of the SEBI regulation.

Any trade, transaction or bid done under the grey market is not authorized or approved of the regulator or any of the stock exchanges.

How can investors make the best of the grey market?

The grey market is an unofficial trading platform that operates outside the purviews of the SEBI regulation.

Hence all transaction is in the form of the forward transaction and is exposed to the counterparty risks and uncertainty.

At best, one can consider the grey market price as an indicator of the listing price. It is advised that do not take the (GMP) grey market too seriously, as such a grey market are subject to the manipulation.

Important points about IPO grey market and IPO GMP 

  • IPO grey market premium movements may change very quickly and rates may be volatile. It is risky to base an investment decision on gray market IPO rates. Please refer to our 
  • IPO grey market premium rates are provided as sourced from market intelligence. Please note these IPO GMP rates may be different depending on geographies and markets.
  • We don’t trade into the grey market nor do we facilitate buying or selling of IPO forms. 
  • IPO GMP is the rate of premium an IPO commands per share in the grey market.
  • Kostak rate is the amount an investor gets by selling his/her IPO application in the grey market. This is the amount an investor stands to gain, irrespective of allotment status.
Note for the Investors
  • Do not subscribe to the IPO just by looking at the premium price as it is subject to change anytime before get listed
  • Grey market does not sponsor buying and selling of the IPO forms
  • IPO the grey market premium is valid for the specific date as mentioned in the header
  • kostak rates are the premium one gets by selling his her IPO application to someone else before allotment or listed.

A gray market transaction involves the unofficial agreement between the IPO investor and a stockbroker which permits an investor to lock profits before the stock lists.

Under this system shares allotted to the IPO, an application is sold by the broker without transferring the shares into their account.

Since it is an unwritten accord between the two parties, it solely depends upon the trust between the broker and the investor.

Frequently Asked Question

So, let us answer a few FAQs in regarding ” IPO Grey Market Premium”

Q Who decides the IPO grey market price

Just like the stock market and the commodity market trading, IPO grey market premium is decided on the basis of demand and supply.

If there are more buyers than seller the prices goes up and vice versa.

It is to be noted that there are no regulatory bodies included in the grey market trading and therefore, there is no restriction on price momentum.

It may rise or fall suddenly.

Q How the grey market works?

Option 1 Trading IPO Allocated shares in the grey market

  • Investor applies for shares through an IPO. There is financial risk involved with these as they may not get any allocated share or they may receive the shares that may list below the issue price.
  • there are few other people in the market who believe that share value more than the issue price.
  • Buyer contact the grey market dealers and place the order to buy the IPO share at a certain premium
  • The grey market dealers contact the seller and ask them whether they are interested to sell their IPO shares
  • the grey market dealer gets the application details from the seller and sends the notification to the buyer that he bought a certain premium at this time
  • the allotment is done and the seller may or may not receive an allotment of shares
  • If shares are allocated to the sold application, either seller may get a call from the dealer to sell them at a certain price or to transfer allocated shares to some Demat account.
  • In the case of selling the shares, the settlement is done based on the profit or loss.
  • If no shares are allocated to the sellers the deal is over without any settlement. The seller still gets his premium as he sold his application.
  • Option 2: Kostak – Trading IPO Applications in Grey Market:
    • Investor applies for the shares through an IPO. They take a financial risk as there is the likelihood that they may not get allocated any share or they receive the shares but shares may list below the issue price. Let’s call them ‘Sellers’.
    • There are few other people in the market who think that the share values more than its issue price. They start collecting these shares through grey market dealers much before the shares are even allocated. Let’s call then ‘Buyers’.
    • Buyers decide the price of the application based on various assumptions and market conditions. They give an offer to the sellers that they are willing to buy an IPO Application (without knowing how many shares will get allocated) at a certain premium.
    • To avoid the risk of allocation sellers may sell their application at a certain premium to the buyer through a grey market dealer.
    • This kind of trading calls application trading or ‘kostak’. In the case of ‘Kostak’ seller needs not to worry about the share allotment in IPO. He receives the allotment or not he will get the premium at which he sold his IPO allocation.
    • Grey market dealer get the application detail from the seller and send a notification to the buyer that he bought an IPO application at a certain premium from the sellers in the grey market.
    • The allotment is done by the issuing registrar. The application seller sold may or may not receive an allotment of shares.
    • If shares are allocated to the sold application, either seller may get a call from the dealer to sell them at a certain price or to transfer allocated shares to some Demat account.
    • In the case of selling the shares, the settlement is done based on the profit or loss.
    • If no shares are allocated to the sellers the deal is terminated without any settlement. The seller still receives his premium as he sold his application.

How come grey market fluctuates every day?

The grey market fluctuates like the listed stock price. It is based on demand and supply. More buyers than the seller will augment the grey market premium, while more seller than the buyer can pull it down.

Q From where can I know the present rates of premium on a share in an IPO grey market?

Based on the demand and supply of the company of the IPO of the company, it can be positive or negative.

The grey market is not a regulated market and anyone can buy or sell shares prior to the commencement of IPO and listing

Q Who pays the brokerage when selling shares on a listing day in the grey market transaction?

Clients who alloted the shares and sold on the day have to pay the brokerage. That’s why it is significant to open an account with the discount broker.

Q Should IPO investors consider grey market premium before applying in an IPO?

Yes, the investors can consider it as one of the parameters before applying for the IPO stocks. It is to be noted that the grey market premium does not guarantee for listing gains or long term gains.

Grey market premium may change in the duration when you apply for IPO and when the issue gets listed.

It is advisable that an IPO investor should consider various factor before applying for IPO such as company financials, business model, promoters, issue size, upcoming projects or investment plans

Final Words

I hope you had a great time reading about the “IPO grey market premium”. If you like it please do share it among friends and colleagues via Facebook and Twitter.

I hope you find the information regarding the Grey market India useful.

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We at investor academy aims at delivering quality information to the readers.

Thanks for reading and have a nice day.

Disclaimer:

– IPO Grey Market Premium (IPO GMP) mention is valid for the specific date as mentioned in the header.
– We are not buying and selling IPO forms on IPO Grey Market.
– Kostak Rate is the premium one gets by selling his/her IPO application (in an off-market transaction) to someone else even before allotment or listing of the issue.
– Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamental of the companies.

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