IPO Grey Market Premium 2023 | Latest IPO GMP With Marketyogi

• Grey Market Premium is a Price that is traded in a Grey market.
• IPO Gray Market is a marketplace where financial securities are traded informally.
• It is not an illegal marketplace, rather it is an informal marketplace.
• In the case of the financial securities market, all securities that are either barred from trading on the exchange or are not yet up for IPO are traded in this market.
• All transactions in Gray Market are in cash form without any regulatory or governing authority.

Check GMP of Running IPO 2023-24

Grey Market Premium (GMP) of IPO on 2022-23

Here you are going to see, what was the Grey market premium of all the IPOs listed in 2022, on the day of listing and you can also see the listing dates of all IPO.

Grey Market Premium (GMP) of IPO on Listing Day in 2021-22

Here you are going to see, what was the IPO GMP in 2021, on the day of listing.

FAQ

What is IPO Gray Market?

1. The gray market for financial securities is known as the IPO gray market. All transactions in this market are essentially in cash.

2. GMP is not regulated by statutory bodies like (SEBI) or any other authority. This market purely works on the trust factor with a comparatively less number of people. There is no participation of any stockbroker in this market. Only dealers work in this market. In this market, either the securities suspended from the stock exchange are traded or the securities are not yet listed or made public. Invest money in IPO only on the basis of Fundamental and Valuation.

3. Like BSE and NSE Gray Market does not have an official stock exchange. In this, trading is done on a call with mutual trust. For this, it is necessary to have personal contact with the operator. There is no guarantee of completion of the transaction in the gray market. The deals are reserved for the day of listing on NSE or BSE. The difference between the gray premium trading price is settled in cash. It also deals in small retail applications.

What are the Advantages of IPO Gray Market?

1. IPO Gray Market allows investors to exit an IPO even before its listing. Investors can take advantage of Value Movement before its listing.

2. In the case of financial securities, this market provides the issuer and the underwriter with an approximate figure of the share price and valuation before it goes public.

3. Such a market of goods offers the same authorized product by the same authorized manufacturer at a discounted price. Low prices attract customers to this market.

4. The unauthorized market as they get huge discounts from manufacturers and to get rid of excess supply they make more profit by supplying directly in the gray market.

5. IPO is the best marketplace for gray market start-ups to decide whether to go public or not. It helps startups in their valuation process.

What are the Disadvantages of the Gray market?

1 Price estimation based on the premium is not always reliable in IPO gray market. Sometimes the price range is significantly impacted due to additional subscriptions from institutional investors.

2. The gray market of financial securities is not subject to any regulatory authority. This increases manipulation and makes it risky.

3. Due to risk, many institutional investors like Pension Funds, Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Mutual Funds, etc avoid investing in the gray market.

What is a grey market premium?

In short, a grey market premium is a difference between the price of an item at a retail store and the price of an item on the grey market (typically eBay).

Is the grey market illegal in India?

I live in India, and a grey market is illegal here. Why do you ask? Because any product which is not registered in India is an illegal product. It is illegal to buy or sell such products. The only exception is if you buy such products from the manufacturer directly. For example, if I buy an original Apple iPhone from the apple store, then it is legal. But if I buy the same product from a guy who got it from apple through a grey market, then it is illegal.

What does GMP mean in IPO?

Grey market premium is the difference between the IPO price and the price of secondary placement. Companies which are having excellent fundamentals will have more demand in the grey market. So the companies which do not have so good fundamentals will get less demand in the grey market.

Can I sell IPO on listing day?

IPO stands for Initial Public Offering. These are stocks of high-growth companies that are initially listed on a public exchange. And yes, you can sell IPO on listing day. You can buy IPO on listing day, you can buy IPO for the next couple of weeks, but remember that selling IPO on listing day itself is not recommended by investment experts.

If you sell IPO on listing day, you won’t get the right price. Why? Because most of the buyers are retail investors and they don’t know the concept of value investing. They just look at the number and statistics of the company and they buy the company’s stock. But if you are an investor, you should look beyond that and figure out the valuation of the company.

So, my point is if you have a strong conviction about the company, hold your IPO stocks for the next couple of weeks. If you do that, you will get the right price.

What is GMP Grey Market Premium?

Grey Market Premium is a Price that is traded in a Grey market. IPO Gray Market is a marketplace where financial securities are traded informally. It is not an illegal marketplace, rather it is an informal marketplace. In the case of the financial securities market, all securities that are either barred from trading on the exchange or are not yet up for IPO are traded in this market. All transactions in Gray Market are in cash form without any regulatory or governing authority.