IPO Grey Market Premium GMP Today - May 2025

The IPO GMP is trending for Mainboard and SME IPOs such as ather energy, Wagons Learning, Srigee DLM, and Arunaya Organics. Additionally, due to uncertainty in the stock market caused by tariffs, the Indian IPO market has been facing some disruption in the last few weeks. Apart from this, there are lots of other companies coming with their IPOs soon, including NSDL and LG.

Current IPO GMP with Estimated Listing Gain

Some Important Points to know about the IPO GMP:

• Grey market is a unofficial; it happen between IPO investors and stockbrokers

• It's important to carefully read our IPO analysis before applying for an IPO.

• Kostak Rate is the amount to buy before the IPO.

• Do not invest base on grey market because it can change any moment

• We do not increase trading in the Grey Market because it’s illegal.
  
  

What is Grey Market Premium?

The IPO Grey Market Premium is an extra price that is used unofficially before the IPO. It shows how much people think about the share's potential value and demand. The grey market premium” is used in the IPO market to calculate the estimated price of the IPO. It is available only before IPO. It is an indication of how the IPO will react after listing.

How to Calculate Grey Market Premium?

Let’s understand by an example. Suppose a company is coming with an IPO of ₹100 and the grey market premium is ₹20; then investors can accept the IPO and might list approx. ₹120. But it's an estimate; there is no security. GMP is a good idea but not always. In many cases, the IPO is in demand, and big investors like HNI and QIB show interest in the IPO price estimated at the IPO GMP.

Factors that Affect IPO GMP?

There are many factors that influence the IPO Grey Market Premium, such as:

• Company Strengths: If the company has strong financials or strong growth prospects and a reliable team, the GMP increases.

• Market Conditions: The overall market condition shows how the sector is doing, and economic news shows how people are interested in IPOs.

• Demand and Supply: If more investors are interested in the shares, the GMP grows highly.

Are grey markets safe?

The grey market depends on the broker or the person who is involved in it. If you want to trade in the grey market, then do so at your own risk. There are lots of fluctuations in the market, so it is important to do it very carefully.

How can I buy or sell an IPO application in the grey market?

The grey market is not run in any official way or application. Some traders buy and sell IPO applications based on the Kostak rates or subject to Sauda rates. This rate depends on the IPO GMP. If you want to trade, then find any local brokers.

What is IPO GMP?

IPO GMP, which is also known as Grey Market Premium, is an unofficial market; there is a difference between GMP and IMP. Before the IPO, the company shares its shares unofficially, which is a grey market or unofficial market trading. Here you can buy or sell shares without any stock exchanges.

The grey market is an unofficial market where people buy and sell shares without listing on a stock exchange. It helps to understand if the company is interested in investing in an IPO.

It's important to understand the GMP price doesn't always show the accurate price when it gets listed. The price of a share depends on several factors like the level of demand from institutional investors and the market situation. GMP only shows what investors feel. The real share price depends on various factors like the performance of the company, market conditions, and some other factors.

Conclusion

The IPO Grey Market Premium is a market that gives a rough idea of an IPO and how it will perform after the listing on the market. It also shows how investors are interested in the company shares. It is basically an unofficial way of trade with lots of risks. It is important to understand that the prices are very influential; there is no guarantee from the IPO GMP. Most people use GMP only for education purposes and make their decisions based on this.