IPO Grey Market Premium or IPO GMP, Kostak, Subject to Sauda
IPO Grey Market Premium or IPO GMP is a very important metric that every individual should check before subscribing to an upcoming IPO. Although GMP is an unofficial way of predicting the listing price of an IPO it is an effective tool for any IPO investor who wishes to subscribe to an IPO.
What is IPO Grey Market Premium?
IPO Grey Market Premium is the price decided in the Grey Market between buyers & sellers of the IPO even before the IPO application or shares are available in the exchange for trading.
Grey Market Price or Grey Market Premium helps in a great way to the IPO investors to whether subscribe to the IPO or not.
Premium is decided on the simple formula of demand & supply. If the demand is high & supply is low then the premium is high & if the demand is less & supply is abundant then the premium is low.
This entire process happens in an unofficial way, so there is no guarantee that the GMP is giving a perfect indication of the listing price.
Although, Routine Investors understands that Grey Market Premium is a very good indicator of whether the IPO will perform or not. Hence, it is a very important tool to check before subscribing to an IPO.
IPO Grey Market Premium / GMP, Kostak, Subject to Sauda
| IPO Name | Issue Price (Rs.) | GMP (Rs) | Kostak (Rs) | SS (Rs) |
| Barbeque Nation IPO | 498-500 | 0 | 0 | NA |
| Lodha / Macrotech Developers IPO | 483-486 | Rs 25-30 | 0 | NA |
List of Recent IPOs with their GMP / Kostak / SS
| IPO Name | Issue Price (Rs.) | GMP (Rs) | Kostak (Rs) | SS (Rs) |
| Nazara Technologies IPO | 1101 | 740 -750 | NA | 9000 |
| Kalyan Jewellers IPO | 87 | 6 – 7 | 250 | NA |
| Suryoday Small Finance Bank IPO | 305 | 30-35 | NA | NA |
| Craftsman Automation IPO | 1490 | 160-170 | NA | NA |
| Laxmi Organic Industries IPO | 130 | 80- 90 | 400 | 5000 |
| Anupam Rasayan IPO | 555 | 120 – 130 | 400 | 4000 |
| EaseMyTrip IPO | 187 | 130- 140 | NA | 8000 |
| MTAR Technologies IPO | 575 | 400-410 | 500 | 8000 |
| Heranba Industries IPO | 627 | 140-150 | 150 | NA |
| RailTel Corporation IPO | 94 | 25-30 | 300 | 2500 |
| Nureca Limited IPO | 400 | 115 – 120 | NA | NA |
| Stove Kraft IPO | 385 | 75-80 | NA | 2000 |
| Home First Finance IPO | 518 | 145-150 | 450 | 3000 |
| Indigo Paints IPO | 1490 | 870-880 | 950 | 8500 |
| IRFC IPO | 26 | 0.50-0.80 | 350 | NA |
| Antony Waste IPO | 315 | 60-65 | 200 | 4000 |
| Mrs Bector Food IPO | 288 | 210-220 | 350 | NA |
| Gland Pharma IPO | 1500 | 150-160 | 800 | 1400 |
| Equitas Small Finance Bank IPO | 33 | 2-3 | – | 1000 |
| UTI AMC IPO | 554 | 5-10 | 300 | – |
| Mazagon Dock IPO | 145 | 35-40 | 350 | 800 |
| Burger King IPO | 59 – 60 | 130-140 | 500 | 10000 |
List of Upcoming IPO Grey Market Premium 2021
Recent IPO Performance
| Date | IPO Name | Issue Size (in Rs. crores) | Issue (Rs.) | Listing Open (Rs.) | Listing Close (Rs.) | Listing Gains(%) | CMP (Rs.) | Current Gains (%) |
| 05-02-2021 | Stove Kraft IPO | 412.63 | 385 | 498 | 445.95 | 15.83 | 506.75 | 31.62 |
| 03-02-2021 | Home First IPO | 1153.72 | 518 | 612.15 | 527.4 | 1.81 | 550.85 | 6.34 |
| 02-02-2021 | Indigo Paints IPO | 1170.56 | 1490 | 2607.5 | 3118.65 | 109.31 | 2,609.95 | 75.16 |
| 29-01-2021 | IRFC IPO | 4633 | 26 | 25 | 24.85 | -4.42 | 25.35 | -2.5 |
| 01-01-2021 | Antony Waste IPO | 300.53 | 315 | 430 | 407.25 | 29.29 | 315.7 | 0.22 |
| 24-12-2020 | Bectors Food IPO | 540.54 | 288 | 501 | 595.55 | 106.79 | 391.2 | 35.83 |
| 14-12-2020 | Burger King IPO | 796.5 | 60 | 115.35 | 138.4 | 130.67 | 149.5 | 149.17 |
| 20-11-2020 | Gland IPO | 6479.55 | 1500 | 1710 | 1820.45 | 21.36 | 2,189.35 | 45.96 |
| 02-11-2020 | Equitas Bank IPO | 517.6 | 33 | 31 | 32.75 | -0.76 | 46.75 | 41.67 |
| 12-10-2020 | UTI AMC IPO | 2159.88 | 554 | 4900.25 | 476.6 | -13.97 | 564.95 | 1.98 |
| 12-10-2020 | Mazagon Dock IPO | 443.69 | 145 | 216.25 | 173 | 19.31 | 224.45 | 54.79 |
| 05-10-2020 | Angel Broking IPO | 600 | 306 | 275 | 275.85 | -9.85 | 343.2 | 12.16 |
| 01-10-2020 | Chemcon Special IPO | 318 | 340 | 731 | 584.8 | 72 | 450.15 | 32.4 |
| 01-10-2020 | CAMS IPO | 2244.33 | 1230 | 1535 | 1401.6 | 13.95 | 1,927.05 | 56.67 |
| 21-09-2020 | Route IPO | 600 | 350 | 708 | 651.1 | 86.03 | 1,594.00 | 355.43 |
| 17-09-2020 | Happiest Minds IPO | 702.02 | 166 | 351 | 371 | 123.49 | 398.4 | 140 |
| 23-07-2020 | Rossari IPO | 496.25 | 425 | 670 | 742.35 | 74.67 | 912.5 | 114.71 |
| 16-03-2020 | SBI Cards IPO | 10286.2 | 755 | 658 | 683.2 | -9.51 | 1,020.65 | 35.19 |
| 30-12-2019 | Prince Pipes IPO | 500 | 178 | 160 | 166.6 | -6.4 | 407.3 | 128.82 |
| 12-12-2019 | Ujjivan Small IPO | 750 | 37 | 58.75 | 55.9 | 51.08 | 35.4 | -4.32 |
| 04-12-2019 | CSB Bank IPO | 409.68 | 195 | 275 | 300.1 | 53.9 | 221.25 | 13.46 |
| 14-10-2019 | IRCTC IPO | 635.04 | 320 | 644 | 728.6 | 127.69 | 1,729.20 | 440.38 |
| 20-08-2019 | Sterling & Wilson IPO | 3125 | 780 | 700 | 725.35 | -7.01 | 254.3 | -67.4 |
| 04-07-2019 | Indiamart IPO | 474.12 | 973 | 1180 | 1302.55 | 33.87 | 9,211.65 | 846.73 |
| 08-05-2019 | Neogen IPO | 131.48 | 0 | 251 | 263.55 | 0 | 757.65 | NA |
| 15-04-2019 | Metropolis IPO | 1200.18 | 880 | 960 | 959.55 | 9.04 | 2,042.95 | 132.15 |
| 11-04-2019 | Rail Vikas IPO | 430.88 | 19 | 19 | 19.05 | 0.26 | 32.5 | 71.05 |
| 01-04-2019 | Embassy Office IPO | 4750 | 300 | 300 | 314.1 | 4.7 | 350.25 | 16.75 |
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Disclaimer –
- IPO Grey Market Premium (IPO GMP) mention is valid for the specific date only.
- Top10stockbroker.com is not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing.
Grey Market FAQs
Ques – What is a Grey Market?
Answer – Grey market basically refers to a trade of a commodity or shares through distribution channels which are not authorized by the actual/original manufacturer. However, this situation isn’t limited to goods only. Shares are also sold out before getting listed on the indexes before IPO.
Ques – What is grey market premium price?
Answer – Grey Market Premium price also known as GMP price is the premium amount at which the grey market IPO shares or stocks are traded before getting listed on the stock exchange like BSE. In other words, the company’s stocks get sold outside the stock market at a particular price.
Ques – How do I apply for IPO in GREY market?
Answer – Grey market is an over-the-counter market, hence, there’s no need for official people or further authorization or stamp. You need to find a local dealer and now you can sell your application to an interested buyer. These local dealers are highly found in cities like Mumbai, Delhi, Jaipur etc.
Ques – How do I buy unlisted shares?
Answer – Unlisted shares can be purchased through many dealers in the market, through specific contacts in the market. There are many dealers who deal with stocks, however, these stocks come with liquidity risks and they may not get listed on the exchange ever.
Ques – What is Kostak Price?
Answer – To apply for an IPO, there is an application price or application charges that come along and is known as Kostak price. It is actually the premium amount at which IPO applications are being traded in the grey market.
Ques – Is GREY market buy or sell shares illegal?
Answer – Grey Market is basically trading that takes place before the stock of a company gets enlisted on the stock exchange. It takes place before the IPO release and the prices may change at any time. Hence, it is unofficial trading and hence, not “illegal”.
Ques – How to sell shares on the GREY market?
Answer – To sell shares in the GREY market, you need to find a local dealer first. Grey Market doesn’t have a regulatory body and hence, any person interested in selling the shares can choose their own buyers/sellers on a personal basis and sell the shares according to their prices.
Ques – What is Subject to Sauda (SS) in GREY market?
Answer – Subject to Sauda also known as Subject to an allotment, is a kind of deal in the Indian Stock market. Basically, an investor can unofficially sell an IPO application at an agreed price to the buyer. Here both the buyer and seller agree that deal is only valid if the seller will get the allotment otherwise the deal will get cancelled.
Ques – What is Kostak and Subject to Sauda?
Answer – Kostak is the price of the application. It is basically a premium amount in rupees at which IPO applications are traded in IPO Grey Market. Whereas, the Subject to Sauda is a kind of deal that is decided by both buyer and seller on the firm allotment on the IPO Application. If one buys or sells the IPO application on the subject to sauda it simply means that one can get the said amount if one will get the allotment otherwise sauda will be cancelled.
Ques – How to determine IPO listing prices?
Answer – Here’s simple maths to determine the IPO listing prices. Simply divide the number of shares sold by the amount of the paid-in capital to get the value of one share of stock. Although, the listing price of the IPO is decided by the syndicate of the investment banks. It is done by the performance of the IPO through a process called book building.
Ques – Is there any holding period in IPO?
Answer – Yes, there is a holding period which is known as the IPO Lock-up period. It is a contract provision that prevents insiders, who already have shares, from selling them for a certain amount of time after the IPO. A standard/general IPO holding period typically ranges from 90 to 180 days, while SPAC IPOs normally last for a duration of 180 days to one year.
Ques – Can I buy pre-IPO shares in India?
Answer – Yes, you can buy the pre-IPO shares as many times as you want before the IPO release in India. But, keep in mind, once the shares get listed, they will be in a holding period for 1 year.
Ques – When an unlisted company issue an IPO?
Answer – Unlisted companies can issue an IPO. They can enter the public market by initial public offerings (IPOs) by a draft prospectus that has been filed with the Board, through an eligible Merchant Banker. This has to be done at least 21 days prior to the filing of Prospectus with the Registrar of Companies (ROCs).
Ques – Can you sell an IPO immediately?
Answer – No, you can’t sell an IPO immediately as they have a one-year locking period, however; if the listing price is equal to or higher than the price you order to sell in pre-open; shares can be sold out at the listing price.
Ques – Can unlisted shares be Dematerialized?
Answer – Yes, shares of an unlisted company, under the Indian Law, could hitherto either be held in physical form or in dematerialized form.
Ques – What happens if stock becomes Zero?
Answer – If a stock becomes Zero, then this simply means that the equity value or the market cap of a particular company is zero. Now the stock will get delisted from the stock exchange, as it will have a zero market value.