IPO GMP, Latest IPO Grey Market Premium & Kostak Rates 2024

IPO GMP Latest IPO Grey Market Premium

Have you heard about IPO GMP, also known as the Grey Market Premium? It’s all about the demand for a company’s IPO and is calculated unofficially in the unregulated market after the price band and date are announced. Before investing in an IPO, it’s always a good idea to check out the upcoming IPO GMP. Just keep in mind that it can change depending on market conditions, demand, and subscription numbers.

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Discover the Latest IPO GMP Today

Explore the newest IPO analysis and estimated IPO grey market rates for upcoming IPOs, along with potential listing gains below. Let’s stay informed and make smart investment decisions together!

Current Mainboard IPO GMP

IPOPriceGMP(₹)IPO SizeOpenCloseBoA DtListingLatest GMP
Hyundai Motor IPONA36314.22 Cr Shares
Garuda Construction and Engineering IPO95₹264.10 Cr08-Oct10-Oct11-Oct15-Oct
Diffusion Engineers IPO16866₹158.00 Cr26-Sep30-Sep01-Oct04-OctLatest GMP
KRN Heat Exchanger IPONA2451.55 Cr Shares25-Sep27-Sep30-Sep03-OctLatest GMP
Manba Finance IPO12033₹150.84 Cr23-Sep25-Sep26-Sep30-SepLatest GMP
Northern Arc Capital IPO
L@350.00 (33.08%)
263131₹777.00 Cr16-Sep19-Sep20-Sep24-SepLatest GMP
Arkade Developers IPO
L@175.00 (36.72%)
12863₹410.00 Cr16-Sep19-Sep20-Sep24-SepLatest GMP
Western Carriers (India) IPO
L@171.00 (-0.58%)
17216₹492.88 Cr13-Sep18-Sep19-Sep23-SepLatest GMP
P N Gadgil Jewellers IPO
Listed @830.00 (72.92%)
480303.5₹1100.00 Cr10-Sep12-Sep13-Sep17-SepLatest GMP
Bajaj Housing Finance IPO
Listed @150.00 (114.29%)
7072₹6560.00 Cr09-Sep11-Sep12-Sep16-SepLatest GMP
Tolins Tyres IPO
Listed @228.00 (0.88%)
22630₹230.00 Cr09-Sep11-Sep12-Sep16-SepLatest GMP
Kross IPO
Listed @240.00 (0.00%)
24024.5₹500.00 Cr09-Sep11-Sep12-Sep16-SepLatest GMP
Shree Tirupati Balajee IPO
Listed @90.00 (8.43%)
8327₹169.65 Cr05-Sep09-Sep10-Sep12-SepLatest GMP
Gala Precision Engineering IPO
Listed @721.10 (36.31%)
529245₹167.93 Cr02-Sep04-Sep05-Sep09-Sep
Baazar Style Retail IPO
Listed @389.00 (0.00%)
38933₹834.68 Cr30-Aug03-Sep04-Sep06-Sep
ECOS (India) Mobility IPO
Listed @390.00 (16.77%)
334126₹601.20 Cr28-Aug30-Aug02-Sep04-Sep
Premier Energies IPO
Listed @990.00 (120.00%)
450487₹2830.40 Cr27-Aug29-Aug30-Aug03-Sep
Orient Technologies IPO
Listed @288.00 (39.81%)
20695₹214.76 Cr21-Aug23-Aug26-Aug28-Aug
Interarch Building Products
Listed @1299.00 (44.33%)
900375₹600.29 Cr19-Aug21-Aug22-Aug26-Aug
Saraswati Saree Depot
Listed @194.00 (21.25%)
16035₹160.01 Cr12-Aug14-Aug16-Aug20-Aug
Unicommerce eSolutions IPO
Listed @235.00 (117.59%)
10860₹276.57 Cr06-Aug08-Aug09-Aug13-Aug
Firstcry IPO
Listed @651.00 (40.00%)
46568₹4193.73 Cr06-Aug08-Aug09-Aug13-Aug
OLA Electric IPO
Listed @76.00 (0.00%)
76-3₹6145.56 Cr02-Aug06-Aug07-Aug09-Aug
Ceigall India IPO
Listed @419 (4.49%)
40117.5₹1252.66 Cr01-Aug05-Aug06-Aug08-Aug
Akums Drugs and Pharmaceuticals
Listed @725.00 (6.77%)
67943
₹1856.74 Cr
30-Jul01-Aug02-Aug06-Aug
Sanstar IPO
Lited @109.00 (14.74%)
9525₹ 510.15 Cr19-Jul23-Jul24-Jul26-Jul
Emcure Pharma (Emcure Pharmaceuticals Limited)
Listed @1325.05 (31.45%)
1008300₹ 1952.03 Cr03-Jul05-Jul08-Jul10-JulCheck GMP
Bansal Wire
Listed @ 356.00 (39.06%)
25670₹ 745 Cr03-Jul05-Jul08-Jul10-JulCheck GMP
Vraj Iron and IPO
Listed @ 240.00 (15.94%)
20750₹171.00 Cr26-Jun28-Jun01-Jul03-JulCheck GMP
Allied Blenders and Distillers IPO Listed @ 320.00 (13.88%)28159₹1500.00 Cr25-Jun27-Jun28-Jun02-JulCheck GMP
Stanley IPO
(Listed @ 494.95 (34.13%))
369173₹537.02 Cr21-Jun25-Jun26-Jun28-Jun
DEE Development Engineers
(Listed @ 339.00 (67.00%))
20390₹418.01 Cr19-Jun21-Jun24-Jun26-Jun
Akme Fintrade IPO
(Listed @ 127.00 (5.83%))
12016₹132.00 Cr19-Jun21-Jun24-Jun26-Jun

Current SME IPO GMP

IPOPriceGMP(₹)IPO SizeOpenCloseBoA DtListingCheck GMP
Archit Nuwood Industries 270₹168.48 Cr
Khyati Global Ventures 99₹18.30 Cr04-Oct08-Oct09-Oct11-Oct
NeoPolitan Pizza and Foods 20₹12.00 Cr30-Sep04-Oct07-Oct09-Oct
Subam Papers 15260₹93.70 Cr30-Sep03-Oct04-Oct08-Oct
Paramount Dye Tec 117₹28.43 Cr30-Sep03-Oct04-Oct08-Oct
Saj Hotels 65₹27.63 Cr27-Sep01-Oct03-Oct07-Oct
HVAX Technologies 45815₹33.53 Cr27-Sep01-Oct03-Oct07-Oct
Nexxus Petro Industries 105₹19.43 Cr26-Sep30-Sep01-Oct04-Oct
Sahasra Electronics Solutions 283205₹186.16 Cr26-Sep30-Sep01-Oct04-Oct
Forge Auto International 10815₹31.10 Cr26-Sep30-Sep01-Oct04-Oct
Divyadhan Recycling Industries 64₹24.17 Cr26-Sep30-Sep01-Oct04-OctLatest GMP
Thinking Hats Entertainment Solutions 4430₹15.09 Cr25-Sep27-Sep30-Sep03-OctLatest GMP
Unilex Colours and Chemicals 8711₹31.32 Cr25-Sep27-Sep30-Sep03-Oct
TechEra Engineering 8218₹35.90 Cr25-Sep27-Sep30-Sep03-Oct
WOL3D 
L@180.05 (20.03%)
15065₹25.56 Cr23-Sep25-Sep26-Sep30-Sep
Rappid Valves (India) 
L@312.00 (40.54%)
222100₹30.41 Cr23-Sep25-Sep26-Sep30-Sep
Avax Apparels And Ornaments 70₹1.92 Cr20-Sep24-Sep25-Sep27-Sep
Avi Ansh Textile 
L@68.00 (9.68%)
622₹26.00 Cr20-Sep24-Sep25-Sep27-Sep
SD Retail Logo 
L@145.00 (10.69%)
13120₹64.98 Cr20-Sep24-Sep25-Sep27-Sep
BikeWo GreenTech  
L@45.00 (-27.42%)
627₹24.09 Cr20-Sep24-Sep25-Sep27-Sep
Phoenix Overseas 
L@64.00 (0.00%)
6415₹36.03 Cr19-Sep23-Sep24-Sep26-Sep
Kalana Ispat 
L@45.15 (-31.59%)
66₹32.59 Cr19-Sep23-Sep24-Sep26-Sep
Pelatro  L@275.00 (37.50%)200₹55.98 Cr16-Sep19-Sep20-Sep24-Sep
Paramount Speciality Forgings 
L@83.00 (40.68%)
5917₹32.34 Cr17-Sep19-Sep20-Sep25-Sep
Osel Devices 
L@198.05 (23.78%)
160100₹70.66 Cr16-Sep19-Sep20-Sep24-Sep
Envirotech Systems 
L@106.40 (90.00%)
5647₹30.24 Cr13-Sep18-Sep19-Sep23-Sep
Deccan Transcon Leasing
L@116.00 (7.41%)
10855₹65.06 Cr13-Sep18-Sep19-Sep23-Sep
Popular Foundations
L@37.00 (0.00%)
37₹19.87 Cr13-Sep18-Sep19-Sep23-Sep
Sodhani Academy of Fintech Enablers4012₹6.12 Cr12-Sep17-Sep18-Sep20-Sep
Innomet Advanced Materials 
L@190.00 (90.00%)
10095₹34.24 Cr11-Sep13-Sep16-Sep18-SepLatest GMP
Excellent Wires and Packaging 
L@85.00 (-5.56%)
90₹12.60 Cr11-Sep13-Sep16-Sep19-SepLatest GMP
Trafiksol ITS Technologies 
 
7095₹44.87 Cr10-Sep12-Sep13-SepLatest GMP
SPP Polymer 
L@63.00 (6.78%)
5915₹24.49 Cr10-Sep12-Sep13-Sep17-SepLatest GMP
Aditya Ultra Steel

L@69.90 (12.74%) 
62₹45.88 Cr09-Sep11-Sep12-Sep16-Sep
Shubhshree Biofuels Energy 
L@189.00 (58.82%)
11975₹16.56 Cr09-Sep11-Sep12-Sep16-Sep
Gajanand International 
L@42.00 (16.67%)
36₹20.65 Cr09-Sep11-Sep12-Sep16-Sep
Share Samadhan 
L@73.05 (-1.28%)
74₹24.06 Cr09-Sep11-Sep12-Sep16-Sep
Vision Infra Equipment Solutions 
L@205.00 (25.77%)
16395₹106.21 Cr06-Sep10-Sep11-Sep13-Sep
My Mudra Fincorp 
Listed @130.00 (18.18%)
11036₹33.26 Cr05-Sep09-Sep10-Sep12-Sep
Mach Conferences and Events 
Listed @300.00 (33.33%)
225145₹125.28 Cr04-Sep06-Sep09-Sep11-Sep
Namo eWaste Management 
Listed @161.5 (90.00%)
8582₹51.20 Cr04-Sep06-Sep09-Sep11-Sep
Naturewings Holidays 
Listed @95.00 (28.38%)
7430₹7.03 Cr03-Sep05-Sep06-Sep10-Sep
Jeyyam Global Foods 
Listed @61.00 (0.00%)
6124₹81.94 Cr02-Sep04-Sep05-Sep09-Sep
Boss Packaging Solutions 
Listed @82.50 (25.00%)
665₹8.41 Cr30-Aug03-Sep04-Sep06-Sep
Travels & Rentals 
Listed @55.00 (37.50%)
4020₹12.24 Cr29-Aug02-Sep03-Sep05-Sep
Aeron Composite 
Listed @150.00 (20.00%)
12534₹56.10 Cr28-Aug30-Aug02-Sep04-Sep
Paramatrix Technologies 
Listed @115.05 (4.59%)
110₹33.84 Cr27-Aug30-Aug02-Sep04-Sep
Indian Phosphate 
Listed @188.10 (90.00%)
99125₹67.36 Cr26-Aug29-Aug30-Aug03-Sep
Jay Bee Laminations 
Listed @277.40 (90.00%)
146157₹88.96 Cr27-Aug29-Aug30-Aug03-Sep
Vdeal System 
Listed @170.00 (51.79%)
11230₹18.08 Cr27-Aug29-Aug30-Aug03-Sep
Rapid Multimodel Logistics 
Listed @103.00 (22.62%)
8410₹8.49 Cr22-Aug27-Aug28-Aug30-Aug
Resourceful Automobile 
Listed @117.00 (0.00%)
117105₹11.99 Cr22-Aug26-Aug27-Aug29-Aug
Ideal Technoplast Industries 
Listed @132.10 (9.17%)
12120₹16.03 Cr21-Aug23-Aug26-Aug28-Aug
QVC Exports 
Listed @161.00 (87.21%)
8691₹24.07 Cr21-Aug23-Aug26-Aug28-Aug
Brace Port Logistics 
Listed @152.00 (90.00%)
80116₹24.41 Cr19-Aug21-Aug22-Aug26-Aug
Forcas Studio 
Listed @152.00 (90.00%)
8086₹37.44 Cr19-Aug21-Aug22-Aug26-Aug
Solve Plastic Products 
Listed @102.00 (12.09%)
91₹ 11.85 Cr13-Aug16-Aug19-Aug21-Aug
Broach Lifecare Hospital 
Listed @47.50 (90.00%)
25₹ 4.02 Cr13-Aug16-Aug19-Aug21-Aug
Sunlite Recycling Industries 
Listed @199.5 (90.00%)
10520₹ 30.24 Cr12-Aug14-Aug16-Aug20-Aug
Positron Energy 
Listed @475.00 (90.00%)
250150₹ 51.21 Cr12-Aug14-Aug16-Aug20-Aug
Aesthetik Engineers 
Listed @110.20 (90.00%)
5858₹26.47 Cr08-Aug12-Aug13-Aug16-Aug
Picture Post Studios 
Listed @30.00 (25.00%)
2410₹18.72 Cr02-Aug06-Aug07-Aug09-Aug
Afcom Holdings 
Listed@205.20 (90.00%)
108100₹73.83 Cr02-Aug06-Aug07-Aug09-Aug
Dhariwalcorp 
Listed@150 (41.51%)
10640₹25.15 Cr01-Aug05-Aug06-Aug08-Aug
Utssav Cz Gold Jewels 
Listed@110.05 (0.05%)
11015₹69.50 Cr31-Jul02-Aug05-Aug07-Aug
Kizi Apparels 
Listed@23.15 (10.24%)
21₹5.58 Cr30-Jul01-Aug02-Aug06-Aug
Ashapura Logistics 
Listed@185.00 (28.47%)
14430₹52.66 Cr30-Jul01-Aug02-Aug06-Aug
Rajputana Industries
Listed@72.20 (90.00%)
3840₹23.88 Cr30-Jul01-Aug02-Aug06-Aug
Bulkcorp 
Listed@130.00 (23.81%)
1058₹20.78 Cr30-Jul01-Aug02-Aug06-Aug
Sathlokhar Synergys E&C Global
Listed@260.00 (85.71%) 
14090₹92.93 Cr30-Jul01-Aug02-Aug06-Aug
S A Tech Software India 
Listed @112.10 (90.00%)
5980₹23.01 Cr26-Jul30-Jul31-Jul02-Aug
Esprit Stones 
Listed @93.15 (7.07%)
8733₹50.42 Cr26-Jul30-Jul31-Jul02-Aug
Trom Industries 
Listed @218.50 (90.00%)
115154₹31.37 Cr25-Jul29-Jul30-Jul01-Aug
Aprameya Engineering 
Listed @72.00 (24.14%)
5823₹29.23 Cr25-Jul29-Jul30-Jul01-Aug
Clinitech Laboratory 
Listed @115.00 (19.79%)
9665₹5.78 Cr25-Jul29-Jul30-Jul01-Aug
Chetana Education 
Listed @98.90 (16.35%)
8525₹45.90 Cr24-Jul26-Jul29-Jul31-Jul
Manglam Infra And Engineering 
Listed @106.40 (90.00%)
5652₹27.62 Cr24-Jul26-Jul29-Jul31-Jul
VVIP Infratech 
Listed @176.70 (90.00%)
93122₹61.21 Cr23-Jul25-Jul26-Jul30-Jul
V.L.Infraprojects 
Listed @79.80 (90.00%)
4260₹18.52 Cr23-Jul25-Jul26-Jul30-Jul
RNFI Services 
Listed @199.50 (90.00%)
10589₹70.81 Cr22-Jul24-Jul25-Jul29-Jul
Macobs Technologies
Listed@96.00 (28.00%)
7514₹19.46 Cr16-Jul19-Jul22-Jul24-Jul
Kataria Industries 
Listed@182.40 (90.00%)
96105₹54.58 Cr16-Jul19-Jul22-Jul24-Jul
SAR Televenture 210₹150.00 Cr22-Jul24-Jul25-Jul29-Jul
Tunwal E-Motors 
Listed@64.00 (8.47%)
595
(23.73%)
₹115.64 Cr15-Jul18-Jul19-Jul23-Jul
Sati Poly Plast 
Listed@247.00 (90.00%)
130140
(84.62%)
₹17.36 Cr12-Jul16-Jul18-Jul22-Jul
Prizor Viztech 
Listed@165.30 (90.00%)
87105
(49.43%)
₹25.15 Cr12-Jul16-Jul18-Jul22-Jul
Three M Paper Boards
Listed@76.00 (10.14%)
6930
(57.97%)
₹39.83 Cr12-Jul16-Jul18-Jul22-JulLatest GMP
Sahaj Solar
Listed@342.00 (90.00%)
180250
(133.33%)
₹ 52.5611-Jul15-Jul16-Jul19-Jul
Aelea Commodities
Listed@165.00 (73.68%)
9577
(63.16%)
₹ 51.0012-Jul16-Jul18-Jul22-Jul
Effwa Infra and Research
Listed @ 155.80 (90.00%)
82143
(174.39%)
₹51.27 Cr05-Jul09-Jul10-Jul12-JulLatest GMP
Ganesh Green Bharat
Listed @ 361.00 (90.00%)
190235 (123.68%)₹125.23 Cr05-Jul09-Jul10-Jul12-JulLatest GMP
Ambey Laboratories 
Listed @ 85.00 (25.00%)
6828
(41.18%)
₹ 44.68 Cr04-Jul08-Jul09-Jul11-JulLatest GMP
Nephro Care India
Listed @ 171.00 (90.00%)
90175 (194.44%)₹41.26 Cr28-Jun02-Jul03-Jul05-Jul
Diensten Tech
Listed @ 240.00 (140.00%)
10070 (70.00%)₹22.08 Cr26-Jun28-Jun01-Jul03-Jul
The Money Fair
Listed @ 98.00 (27.27%)
775 (6.49%)₹23.11 Cr25-Jun27-Jun01-Jul02-Jul
Petro Carbon and Chemicals Listed @ 300.00 (75.44%)17190 (52.63%)₹113.16 Cr25-Jun27-Jun28-Jun02-Jul
Divine Power
Listed @155.00 (287.50%)
4061 (152.50%)₹22.76 Cr25-Jun27-Jun28-Jun02-Jul
Shivalic Power Control
Listed@ 311.00 (211.00%)
100225 (225.00%)₹64.32 Cr24-Jun26-Jun27-Jun01-Jul
Sylvan Plyboard
Listed@  66.00 (20.00%)
5527 (49.09%)₹28.05 Cr24-Jun26-Jun27-Jun01-Jul
Mason Infratech
Listed@ 88.00 (37.50%)
6410 (15.63%)₹30.46 Cr24-Jun26-Jun27-Jun01-Jul
Visaman Global Sales
Listed@ 45.10 (4.88%)
435 (11.63%)₹16.05 Cr24-Jun26-Jun27-Jun01-Jul
Medicamen Organics
(Listed @137.85 (305.44%))
3470₹10.54 Cr21-Jun25-Jun26-Jun28-Jun
EnNutrica
(Listed @ 102.60 (90.00%))
5468₹34.83 Cr20-Jun24-Jun25-Jun27-Jun
Winny Immigration
(Listed @ 240.00 (71.43%))
14077₹9.13 Cr20-Jun24-Jun25-Jun27-Jun
GEM Enviro
(Listed @142.5 (90%))
7572₹44.93 Cr19-Jun21-Jun24-Jun26-Jun
Durlax Top Surface
(Listed @109 ( 60.29%))
6864₹40.80 Cr19-Jun21-Jun24-Jun26-Jun
Falcon Technoprojects India
(Listed @-84 (-8.7%))
92₹13.69 Cr19-Jun21-Jun24-Jun26-Jun
GPES Solar
(Listed @375.00 (298.94%))
94181₹30.79 Cr14-Jun19-Jun20-Jun24-Jun
United Cotfab
(Listed @75.00 (7.14%))
7013₹36.29 Cr13-Jun19-Jun20-Jun24-Jun

Also Check Below post:

IPO Subscription Status: Live IPO Subscription Numbers 2024

IPO Allotment Status: Check Allotment Status, Date, Allotment Link

Disclaimer

The estimated IPO Grey Market Premium mentioned here is valid only for the specific date.

Please note that we do not participate in buying or selling IPO forms on IPO Grey Market.

Stock market conditions can affect the IPO listing price, potentially differing from the estimated IPO GMP price.

The IPO GMP rates provided are for educational purposes only. It is important not to subscribe to an IPO solely based on the premium price, as it may change before listing.

We strongly recommend subscribing to an IPO by considering the fundamentals of the companies.

What is IPO GMP?

When we talk about IPO GMP (IPO Gray Market Premium), we’re referring to the difference between the price of an IPO when it is issued and its trading price in the unofficial gray market. This gray market is where shares are bought and sold outside of the traditional stock exchanges before the IPO officially starts trading.

In simpler terms, IPO GMP is like a peek into how investors are feeling about a particular IPO. A high GMP usually means that investors are optimistic and expect the stock price to go up once it hits the stock exchange. It’s a way to gauge the enthusiasm and interest surrounding a new public offering before it becomes available to the general public.

The grey market premium (GMP) is not always a surefire way to predict how a stock will perform when it hits the stock exchange during an IPO. There are many things that can affect the stock price, such as how much demand there is from large institutional investors and the overall market environment.

The GMP basically shows how investors are feeling at a specific time. The real deal of how the stock will perform depends on many factors, such as how the company is performing, the overall market mood, and other fluctuations.

One thing that catches the attention of potential investors is the IPO grey market premium (GMP). This article is to help you understand what IPO GMP is, as well as learn about IPOs and why they matter in the IPO grey market.

So, IPO GMP basically tells us how investors are feeling about a new IPO. If GMP is positive, it means that people are willing to pay more than the starting price for the shares, which shows a lot of interest in the IPO. On the other hand, a negative GMP suggests that there is not much enthusiasm, as the shares are trading below the issue price.

Let’s understand this in more detail: If the gray market shows the IPO rate at ₹100 and the actual IPO price is ₹200, you can estimate the listing price to be around ₹300. This means a potential 50% gain compared to the IPO price. This is a rough estimate, but it gives you a good idea of what to expect when the shares hit the market.

The price at which an IPO is listed may differ from the expected price in the gray market, depending on market conditions and demand for the company’s shares. We have seen cases where IPOs had lower gray market prices, but they listed with higher profits, while some IPOs in 2021 had higher gray market prices, but they listed lower. The gray market is an important factor in calculating listing IPO profits, but we advise investors to use gray market rates for informational purposes only and not base their trades solely on these numbers.

[table id=ListedIPOGreyMarketPremium /]

What is Grey Market Premium?

The IPO Gray Market Premium (IPO GMP) is a way to see the potential price an IPO might list at. It’s not official, but it gives investors an idea of the stock’s expected gain. This grey market price is looked at before the IPO is listed and during the days leading up to the allocation date. The IPO GMP can help predict how the IPO will perform on its listing day.

Let’s take a look at how the IPO GMP calculation works. If a company sets an IPO price of ₹100 and the grey market premium is around ₹20, it’s likely that the IPO will debut at around ₹120 on its listing day. However, it’s important to remember that this is just an estimate and not always a guarantee.

In most cases, the IPO GMP prediction is accurate, but sometimes it can be off. We’ve noticed that when an IPO is highly sought after and there is a strong interest from high net worth individuals and qualified institutional buyers, the IPO tends to list close to the expected price with an estimated GMP. Keep in mind that the market can be unpredictable, so it’s always good to be prepared for any outcome.

What is Affecting the IPO Grey Market Premium?

There are various factors that can influence the IPO Grey Market Premium (GMP), such as:

Company Fundamentals: Having solid financials, promising growth potential, and a trustworthy management team can boost the GMP.

Market Conditions: The overall mood of the market, sector performance, and economic factors all contribute to determining investor interest in IPOs.

Demand and Supply Dynamics: The availability of shares and the level of interest from investors are key factors in determining the GMP.

What is Kostak Rate?

The Kostak rate is the amount that one investor pays to the seller of an IPO application before the IPO listing. Just like the grey market, Kostak rates also fluctuate. You can buy and sell your IPO application based on Kostak rates outside the market and lock in your profit. Remember, Kostak rates apply whether you get the IPO allotment or not, so buyers should be prepared to pay the Kostak rates for the IPO.

For example, if you did 5 applications for one IPO and sold them at ₹1000 per application, you would secure a profit of ₹5000. Even if you got the allotment in 2 applications, your profit would still be ₹5000. If you sell the stock and make a profit of around ₹10000, you would need to give the remaining profit of ₹5000 to the investor who bought the application. This is a safe way to sell your application in the IPO grey market.

What is Subject to Sauda?

According to the Kostak rate, the Subject to Sauda on the application is the amount decided upon investors receiving the firm allotment on their IPO Application. If you buy or sell the IPO application on the Subject to Sauda, it means you can receive the agreed amount if you get the allotment, otherwise the sauda will be canceled. You cannot determine your profit in advance since it depends on the allotment. If you do get an allotment and sell the application for around ₹10,000, but the profit increases to ₹15,000 on the listing day, you would need to pay ₹5,000 to the buyer.

How to Calculate Grey Market Premium?

It’s basically a price that gets traded in the grey market before an IPO is officially listed. The calculation for this price takes into account things like how well the company is doing, how much demand there is in the grey market, and the likelihood of people subscribing to the IPO.

Here’s an example to help you understand: Let’s say the IPO price for Company X is set at ₹200, but the grey market is showing a rate of ₹100. This could mean that the IPO might actually list at ₹300 (that’s ₹200 + ₹100). However, it’s important to remember that this is just an estimate, and the actual listing price could end up being different from what the grey market is showing.

Follow IPO Watch for the upcoming IPO news and their reviews, also keep following us on Twitter.

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