ipo grey market premium GMP
Market Undercurrent
Updated @ 12.00 am on September 5, 2024.
GUPSHUP of IPO-MARKET
👉 Bajaj Housing Finance Mainboard IPO: Euphoria showing downtrend. Premium steadily declined from Rs. 54-56 in the morning to Rs. 49 at present.
👉 Ecos Mobility Mainboard IPO: Allotted Application rates are now live. After allotment, premium crashed to Rs. 120 from Rs. 160 earlier
👉 Shree Tirupati Balaji Mainboard IPO: Premium and Subject to rates are now live, but very low volume. The IPO size is very tiny, so grey market operators are not willing to take more exposure.
👉 Gala Precision Mainboard IPO: After accumulating strong oversubscription, Premium and subject to rates in Gala have been pulled down. The premium has crashed from Rs. 270 to 230 and further fall anticipated by Rajkot traders. The IPO size is very tiny, so grey market operators are not willing to take more exposure.
👉 Jeyyam and Boss SME IPO: Premium rates are live but very thin volume at both the counters.
👉 Baazar Style Retail Mainboard IPO: Opened on Friday. Earlier IPO of Star Health Insurance has provided strong returns to the investors. Premium more or less stable. Volume also down since last 3 sessions.
👉 Anticipated shareholder’s quota in forthcoming IPOs:
Bajaj Housing Finance IPO (Bajaj Finance & Bajaj Finserve shareholders)
HDD Finance IPO (HDFC Bank shareholders)
Kotak Bank AMC IPO & Kotak Securities IPO (Kotak Bank shareholders)
SBI Funds management IPO & SBI home Finance (SBI shares holders)
Reliance Jio and Reliance Retail (Reliance Industries shareholders)
Buying one shares of parent companies may prove profitable to avail shareholders’ Quota.
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*Only website which provide “Application rates” अरजी बेचने खरीदने के भाव
*Subject to trades always stop on Allotment. After allotment, there are trades in Allotted Applications. Only we provide such “Rates for allotted Applications”
Excellent Wires IPO GMP |
 |
GMP | Sub2 | Allotted |
| – | – | Not yet | ||
| Net Size Rs.77.84 Cr | ||||
| Price Rs 90 Lot 1600 |
– | |||
| Open 11.09.2024 Close 13.09.2024 |
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| Al 16.09.2024 List: 18.09.2024 |
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| LM: Inventure Merchant Banker services | ||||
Tolin Tyres IPO GMP |
 |
GMP | ||
| Net Size: Rs 230 Cr. | Appli. | Sub2 | ||
| Price Rs 216 Lot 66 |
Retail Applications | |||
| Open 9.09.2024 Close 11.09.2024 |
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| Al 12.09.2024 List: 16.09.2024 |
Big HNIS | |||
Bajaj Housing Fin. IPO GMP |
 |
GMP | ||
| 54 | ||||
| Net Size: Rs 6560 Cr. | Appli. | Sub2 | ||
| Price Rs 70 Lot 214 |
Retail Applications | 2650 | 6000 | |
| Open 9.09.2024 Close 11.09.2024 |
Small HNIs 2+ | 5900 | 84000 | |
| Al 12.09.2024 List: 16.09.2024 |
Big HNIS | 21800 | 84000 | |
| Shareholder HNI Application Rs. 6300 | ||||
Vision Infra Equipment IPO GMP |
 |
GMP | Sub2 | Allotted |
| – | – | Not yet | ||
| Net Size Rs. 106.21 Cr | ||||
| Price Rs 163 Lot 800 |
– | |||
| Open 6.09.2024 Close 10.09.2024 |
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| Al 11.09.2024 List: 13.09.2024 |
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| LM: | ||||
Shree Tirupati IPO GMP |
GMP | |||
| 8 | ||||
| Net Size: Rs 169.65 Cr. | Appli. | Sub2 | ||
| Price Rs 83 Lot 180 |
Retail Applications | – | ||
| Open 5.09.2024 Close 9.09.2024 |
Small HNIs 2+ | – | ||
| Al 10.09.2024 List: 12.09.2024 |
Big HNIS | – | ||
My Mudra Fincorp IPO GMP |
GMP | Sub2 | Allotted | |
| – | – | Not yet | ||
| Net Size Rs. 31.57 Cr | ||||
| Price Rs 110 Lot 1200 |
– | |||
| Open 5.09.2024 Close 9.09.2024 |
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| Al 10.09.2024 List: 12.09.2024 |
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| LM: | ||||
Namo eWaste IPO GMP |
GMP | Sub2 | Allotted | |
| 50 | 60800 | Not yet | ||
| Net Size Rs.48.63 Cr | ||||
| Price Rs 85 Lot 1600 |
– | |||
| Open 4.09.2024 Close 6.09.2024 |
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| Al 9.09.2024 List: 11.09.2024 |
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| LM: Hem Securities | ||||
Mach Conferences IPO GMP |
 |
GMP | Sub2 | Allotted |
| 200 | 91200 | Not yet | ||
| Net Size Rs.118.53 Cr | ||||
| Price Rs 225 Lot 600 |
– | |||
| Open 4.09.2024 Close 6.09.2024 |
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| Al 9.09.2024 List: 11.09.2024 |
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| LM: Beeline Capital Advisors | ||||
Gala Precision IPO GMP |
 |
GMP | ||
| 265-271 | ||||
| Net Size: Rs 167.93 Cr. | Appli. | Sub2 | ||
| Price Rs 529 Lot 28 |
Retail Applications | – | 5300 | |
| Open 2.09.2024 Close 4.09.2024 |
Small HNIs 2+ | – | 75000 | |
| Al 5.09.2024 List: 9.09.2024 |
Big HNIS | – | 75000 | |
Naturewings Holidays IPO GMP |
 |
GMP | Sub2 | Allotted |
| 45 | 54700 | Not yet | ||
| Net Size Rs. 7.03 Cr | ||||
| Price Rs 74 Lot 1600 |
– | |||
| Open 3.09.2024 Close 5.09.2024 |
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| Al 6.09.2024 List: 10.09.2024 |
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| LM: | ||||
Jeyyam Global Foods IPO GMP |
 |
GMP | Sub2 | Allotted |
| – | – | Not yet | ||
| Net Size Rs.77.84 Cr | ||||
| Price Rs 61 Lot 2000 |
– | |||
| Open 2.09.2024 Close 4.09.2024 |
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| Al 5.09.2024 List: 9.09.2024 |
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| LM: Corpwis Advisors pvt ltd | ||||
Boss Packaging IPO GMP |
 |
GMP | Sub2 | Allotted |
| – | – | Not yet | ||
| Net Size Rs.7.97 Cr | ||||
| Price Rs 66 Lot 2000 |
– | |||
| Open 30.08.2024 Close 3.09.2024 |
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| Al 4.09.2024 List: 6.09.2024 |
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| LM: Fedex Securities Pvt ltd | ||||
Baazar Style Retail IPO GMP |
 |
GMP | ||
| 65 | ||||
| Net Size: Rs Cr. | Appli. | Sub2 | ||
| Price Rs 389 Lot 38 |
Retail Applications | – | 2500 | |
| Open 30.08.2024 Close 3.09.2024 |
Small HNIs 2+ | – | 35000 | |
| Al 4.09.2024 List: 6.09.2024 |
Big HNIS | – | 35000 | |
Archit Nuwood IPO GMP |
 |
GMP | Sub2 | Allotted |
| 270 | 82100 | Not yet | ||
| Net Size Rs.168.48 Cr | ||||
| Price Rs 270 Lot 400 |
– | |||
| Open Close |
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| Al List: |
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| LM: | ||||
Travel & Rentals IPO GMP |
 |
GMP | Sub2 | Allotted |
| 22 | 50200 | Not yet | ||
| Net Size Rs.168.48 Cr | ||||
| Price Rs 40 Lot 3000 |
– | |||
| Open 29.08.2024 Close 02.09.2024 |
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| Al 3.09.2024 List: 5.09.2024 |
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| LM: | ||||
Quicklinks
Important
# Information given on this post/page is only coverage of News related to Grey Market. We do not deal in today grey market premium or Subject to rates, nor we recommend dealing in Grey Market. Movements in the grey market may not be based on any fundamental or other attractiveness of the IPO. It is based among other factors, on the estimate of oversubscription, interest-costs of the funds blocked, greediness of the IPO-applicants and also it may be affected by manipulations of the grey market operators/promoters.
# Investment decision based on Grey Market Premium can be faulty
What is Grey market?
A Grey Market also know as a parallel market, is an unofficial stock and applications market.
In this market, the investors trade for shares or applications before the shares are officially listed for trading in the stock exchange. Trading in grey market stocks in India is done in cash and in person.
No third-party firms such as Stock Exchanges or SEBI back this transaction. Kostak and Grey Market Premium are the two well-known terms in the Initial Public Offering (IPO) Grey Market.
Grey markets in India have existed as a parallel market for stocks for a long time, and traders and investors verify their authenticity.
What is Grey market Premium?
Grey Market Premiu is popularly known as GMP. The amount at which the IPO shares are traded is known as grey market premium. The company’s stock that will come up with the IPO is bought and sold outside the stock market. The live grey market premium is believed to reflect how the IPO will react on its listing day.
Lets understand with an example
Let’s assume that the issue price of Stock WIN is Rs. 100. And the grey market premium is Rs. 300. This suggests that investors are ready to purchase the shares of Company WIN for Rs.400 (100+300).
What is Subject to rate in an IPO?
Subject to Sauda price is an extension to the IPO Kostak rate. In subject to sauda, the buyer of the application agrees to pay a fixed price against the IPO application only if the seller of the IPO application receives allotment in the IPO. The subject-to-Sauda rates are generally higher than the Kostak rates.
Considering the above example, the buyer of the applicant agrees to pay an additional Rs 4,000 for the entire application provided the IPO applicant receives the allotment.
In this case, if the applicant secures no allotment, the deal gets cancelled. However, if the IPO applicant receives the allotment the buyer of the IPO application pays Rs 4,000 as the premium. The seller of the applicant either passes the listing gains to the seller or shares to the buyer of the IPO application for Rs 11,500 (7,500 + 4,000).
Note: Rs 7,500 is the amount for 15 shares bought at Rs 500. Rs 4000 is the premium buyer paid for the entire application.
What is Kostak & Sauda rates?
The IPO Kostak price is an agreed-upon price at which IPO applications are sold and purchased, regardless of their allotment status. The Kostak Price is the fixed price paid by the buyer of the IPO Application to the seller of the IPO Application.
The Kostak rate is the price for the entire IPO application and not per share. It is a price mutually agreed between the buyer and seller.
For example, an investor has applied for 15 shares at Rs 500 in an IPO amounting to Rs 7500. Now there is another investor who is bullish about this upcoming IPO and agrees to pay Rs 1,000 as the premium to purchase the entire IPO application. In this case, the seller of the IPO application secures a fixed profit of Rs 1,000 irrespective of whether he secures an allotment or not.
If the seller receives allotment and the listing happens at a premium, the seller is required to pass the listing gains to the buyer or credit the shares to the purchaser against Rs 8,500 (7,500 +1,000).
If the seller does not receive the allotment, still the buyer of the IPO application needs to pay Rs 1,000 to the seller of the IPO application.
How GMP is calculated?
There are many variables which determine the price of an IPO on the grey market.
The Grey market Premium (GMP) over an above the IPO issue price is determined by demand and supply statistics, similar to stock prices. I expect the grey market pricing to be lower. The players in the grey market estimate the listing price for an IPO and the difference between the estimated listing price and the issue price is considered as GMP.
The profitability of an Issuer company and the valuation as which the shares are offered also affect the estimate of listing price.
How Subject to & Kostak rate is calculated?
Types of Trading in Grey market?
Types of Trading in Grey Market
There are two types of trading in the grey market-
1.Trading of Applications, i.e., selling or buying IPO applications at a particular rate or premium.
2. Trading of Allotted Shares, i.e., selling or buying the allocated IPO shares before they get listed in the stock exchanges.
How do you calculate listing price from GMP?
GMP or Grey market Premium is rough indication of the premium/discount over the IPO-issue-price. At this juncture, we shall not go into the nitty gritty of how GMP is arrived at or quoted in the Grey market. The players add up GMP to the IPO-Issue-price and estimate the IPO listing price.
Let’s understand:
The GMP of an IPO of company SUCCESS is Rs. 25 and the shares are offered at Rs. 50. Then the shares are estimated to get listed at Rs 75 (Rs. 50+ Rs. 25 GMP)
Is trading in grey market illegal?
Yes, in simple words, the trading in the grey market is not legal and disapproved by the market regulator SEBI. Under normal circumstances, market factors determine the GMP, so the chances of fraud are not high in such IPOs. However, many a times, the grey market operator in connivance with the IPO-promoter/its lead manager manipulates the GMP, to attract the gullible and innocent investors to apply for the IPO and the investors incur losses. To prevent such frauds, the market regulator discourages grey market trading.
Who should you contact to trade in Grey Market?
As we know trading in a grey market is not legal, the trading in the grey market is often carried out over phone calls. There are no such official registered persons or traders for grey market trading. An investor willing to trade in the grey market needs to find a local dealer who will help find the buyers and sellers.
