Frequently Asked Questions

IPO Grey Market Premium (GMP) is the price premium at which unlisted shares of an upcoming IPO are bought and sold informally before they are officially listed on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE).

Estimated listing price is calculated by adding the current Grey Market Premium to the upper cap of the IPO price band. For example, if the cap price is ₹150 and GMP is ₹45, the estimated listing price is ₹195 (+30%).

The grey market is an unofficial, over-the-counter market that is not recognized or regulated by SEBI. While dealing in cash or unofficial contracts is discouraged, tracking GMP as an indicator of demand and market sentiment is common practice among investors.

Kostak rate is a fixed fee paid to an IPO applicant for selling their application before allotment, irrespective of whether shares are allotted. Subject to Sauda (Sauda rate) is a conditional profit paid only if shares are actually allotted to the application.

Yes. While positive GMP usually predicts positive listing gains, broad market crashes, negative geopolitical news, or sharp institutional pullbacks between the issue closing date and listing day can cause a stock to list at a discount.

On gmponipo.com, we track dealer bids and update live Grey Market Premiums multiple times throughout the trading day to ensure investors have access to the latest rates.

IPO application bidding and UPI mandate submission officially close at 5:00 PM IST on the final day of the subscription window.