IPO Grey Market Premium

 Latest IPO Grey Market Premium and Kostak Rate

The grey market premium of IPO is information that is estimated based on the demand of a company in the market. The grey market starts unofficially in the market after the IPO date and price band declared. IPO Investors always look at the premium of an IPO before investing it but it might change as per the market conditions, demand, and subscription numbers.

These are the list of upcoming IPOs in the near future i.e. Aadhar Housing Finance, GoAir, LIC of India, Jana Small Finance Bank, Seven Islands Shipping, Utkarsh Small Finance Bank, Shri Bajrang Power and Ispat,  Bajaj Energy, Seaborne Logistics, Annai Infra Developers, Mukesh Trends Lifestyle, Montecarlo,  Shya Steel. Lets Checkout current running IPO GMP Live with latest updates. We recommend to subscriber to use the grey market rates for information, do not trade based on the below figures.

Latest Upcoming IPO GMP Rate : 05/02/2022

Issuer Company	Date	Lot Size	Offer Price	GMP Today	Kostak	Subject to Sauda
Vedant Fashions	04-08 Feb	17	Rs.824-866	Rs.35	Rs.400	Rs.700
Adani Wilmar	27-31 Jan	65	Rs. 218-230	Rs.50	Rs.500	Rs.1100

Note for the IPO Subscriber:

1. IPO Grey Market Premium (IPO GMP) is applicable for the particular date as reference in the above table.
2. Kostak Rate is the premium amount that gets by selling IPO application (at off-market) to broker or other on before allotment or listing date of the issue as per market condition.
3. Investors do not apply for IPO on basis of above mentioned grey market premium amount as it can be vary anytime on before listing day.
4. Investors apply IPO after considering Fundamentals of the companies.

Read also: IPO Allotment Status

FAQs On IPO Grey Market :

What is Grey Market Premium?

The "grey market premium" otherwise known as "IPO GMP" means estimated price of IPO may be listed on listing day. The grey market is unofficial but subscriber on the basis of the grey market price of an IPO to receive the fixed profit of the IPO application. The grey market premium demonstrates how the IPO respond on a listing day with estimated price(IPO GMP). Lets see how the calculation done on. If the company Issue IPO with an IPO Price of Rs.1000 and the grey market premium is around Rs.300 then we can predict that the IPO might list around Rs.1300 on its listing day. Yet, the truth of the matter is, there is no dependability in the market. We have seen that if the IPO is in popular and the estimated HNI and QIB subscription is on a higher side, the IPO listed nearly the given price with estimated IPO GMP.

What is Kostak Rates?

The Kostak rates is the price that Broker/Investors pays to the seller of IPO application before the IPO listing. Broker, Investor or individual person can sell and buy their full IPO application on Kostak rates from outside the market and fix their gain per application. The Kostak rates apply the investor get the IPO allotment or not, the buyer should pay the Kostak rates for the IPO to the IPO application seller. If broker has apply 10 applications for one IPO and sold the same at Rs.800 per application it means he or she fixed the IPO profit at Rs.8000. If he gets the allotment in 3 application still his profit will be fixed to Rs.8000. Now if he sells the stock after listing and gets the profit around Rs.11000 then he or she needs to pay the balancing profit of Rs.3000 to the investor who bought the application. This is the fixed way to sell your application in the IPO grey market and to get fix amount of profit.

What is Subject to Sauda?

According to the above table rate, the Subject to Sauda on the application is the amount chosen when the IPO subscriber get the confirm allotment on their IPO Application. If Investors/ subscriber sells or buys the IPO application on the subject to sauda that means Investors/ subscriber can get the said amount if Investors/ subscriber will get the allotment otherwise sauda will be cancelled. In this can not fix their profit as it depends on the allotment. Again if Investors/ subscriber get an allotment and he sold the application at Rs.7000 and the profit/gain goes high on listing day of Rs.10000 then Investors/ subscriber should pay Rs.3000 to that person/broker who bought the application of IPO.

How Do I Sell IPO Application in Grey Market?

There are no official business associated with grey market. There are agent/ share brokers/any person who buy and sell IPO applications form on Kostak Rates or Subject to Sauda Rates on the basis of IPO GMP. Investor/Subscriber should findout local brokers who stays amoung buyers and sellers and do the grey market trading of IPO applications. Know about the rates and afterward do the purchasing or selling of IPO Application.