IPO GMP (Grey Market Premium) is the premium at which an IPO's shares are informally quoted before they list on the exchange. If an IPO is priced at ₹100 and the GMP is ₹25, the grey market is implying a listing price around ₹125.
The grey market is unofficial. It is not regulated by SEBI, NSE or BSE, deals in it are not enforceable, and GMP is not a price you can trade at on any exchange. It is best read as a sentiment gauge, not a forecast.
How GMP is quoted
- GMP — the premium (or discount, if negative) over the issue price, in rupees per share.
- Estimated listing price — issue price + GMP.
- GMP % — GMP ÷ issue price. A ₹25 GMP on a ₹100 issue is 25%.
GMP changes daily, often sharply in the last days before listing, as subscription numbers come in and overall market mood shifts.
Kostak and subject-to-sauda
Two other grey-market rates are often quoted alongside GMP:
- Kostak — a fixed amount paid for an IPO application, whether or not it receives an allotment. The applicant sells the application's outcome in advance.
- Subject-to-sauda — an amount paid for an application only if it is allotted. If there is no allotment, nothing changes hands.
Both are informal arrangements with real counterparty risk.
How to read GMP sensibly
- Look at the trend, not one number. A GMP that rises steadily as subscription builds says more than a single high print.
- Check subscription by category. Strong QIB (institutional) demand is often read as a quality signal; heavy retail-only demand less so.
- Compare trackers. Different sources quote different GMPs. The spread between them tells you how much agreement there is.
- Expect surprises. Listing prices regularly differ from GMP, in both directions, especially when markets move between the close of bidding and listing day.
Where to see it
The NEOGreeks IPO GMP page shows the median GMP across public trackers, the range between them, subscription by QIB, NII and Retail, and allotment status links for every open, upcoming and recently listed IPO.