Published on: January 24, 2025
Live IPO GMP |Upcoming IPO GMP (Grey Market Premium)
The IPO grey market premium (GMP) is the unofficial market where IPO shares are bought and sold before listing. Here are trending IPOs GMP live : Denta Water, Capital Numbers Infotech, EMA Partners, Rexpro Enterprises, GB Logistics, and H.M. Electro Mech.
| Company Name | Price | IPO GMP | Gain | Date | IPO Size (Cr) | Type of IPO (Lot) |
|---|---|---|---|---|---|---|
| Dental Water | ₹294 | ₹135 | 46% | 22Jan - 24Jan | ₹220.50 Cr. | Mainline |
| Arisinfra Solutions | ₹210 | ₹40 | 19% | 03Feb - 05Fab | ₹600 Cr | Mainline |
| Capital Numbers Infotech | ₹263 | ₹65 | 25% | 20Jan - 22Jan | ₹169.37 Cr | BSE SME (400) |
| EMA Partners | ₹124 | ₹50 | 40% | 17Jan-21Jan | ₹76.01Cr | NSE SME |
| Solar91 Cleantech | ₹195 | ₹100 | 50% | 2025 | ₹199.45 Cr | Mainline (165) |
| Malpani Pipes | ₹90 | ₹20 | 22% | 29Jan-31Jan | ₹40.32 Cr | BSE SME (1600) |
| Rosmerta Digital Services | ₹147 | ₹20 | 15% | 2025 | ₹698.06 Cr | Mainline (33) |
| Rexpro Enterprises | ₹145 | ₹20 | 14% | 22Jan - 24Jan | ₹53.65 Cr | NSE SME |
| CLN Energy | ₹250 | - | - | 23Jan - 27Jan | ₹72.30 Cr | BSE SME |
| GB Logistics | ₹102 | ₹20 | 20% | 24Jan - 28Jan | - | BSE SME |
| H.M Electro Mech | ₹75 | ₹20 | 33% | 24Jan - 28Jan | ₹27.74 Cr. | BSE SME |
Grey Market premium indicates what the potential price of an IPO share can be at the time of listing. If the GMP is high, it means that investors are more interested in that IPO and the share price can go above the issue price.
If the GMP is low, it indicates that investors are less enthusiastic. However, GMP is not always accurate, as the actual performance of an IPO depends on various market factors.
What is IPO Grey Market Premium (GMP)
The IPO grey market premium (GMP) is an unofficial and illegal market price that represents the estimated value of a company’s IPO (initial public offering) shares before their listing.
When a company issues its IPO, investors and traders buy and sell those IPO shares in an unusual or unofficial market. It is called the grey market because it is not regulated by government or regulatory bodies.
After the application process for an IPO is over, some investors start transacting these shares. The grey market premium (GMP) is the difference in value between the issue price of the stock and its trending price in the grey market.
For example, if a company’s IPO issue price is ₹100 and its GMP is ₹30, it means that the value of that IPO share in the grey market can be up to ₹130.
The GMP acts as an indicator for investors to know how much demand the IPO shares may have after listing. If the GMP is high, it means that investors expect the company to perform well in the future and the shares have a positive listing prospect.
This also shows that the market has more enthusiasm and confidence in that company’s stock. On the other hand, if the GMP is low or negative, it means that the stock may have a weak listing and investors may have doubts about the performance of that company.
However, the grey market premium is only an estimate and is not always accurate. The actual listing price of shares depends on many other market conditions such as economic conditions, company performance, and overall investor sentiment.
For this reason, investors should not decide to invest in an IPO by looking at GMP alone, but should also take into account other important aspects such as the company’s financial results, business model, and industry conditions.
What Factors are Influencing IPO GMP?
There are many factors that affect the IPO grey market premium (GMP). Firstly, the financial position and performance of the company is the main reason for this.
If the company has a strong financial record, good profits and strong business, then investor confidence increases, which leads to higher GMP. Secondly, the business model and future prospects of the company are also important.
If investors believe that the business model of the company is stable and developing, then they show more interest in this IPO, which increases the GMP. Thirdly, the over-subscription status of the IPO also affects the GMP.
If the IPO receives applications from more investors, it indicates that there is more demand for that stock in the market, which increases the GMP.
Apart from this, the general condition of the market, the state of the economy and investor sentiment are also important. If there is a positive environment in the market and investors are optimistic, then the GMP can be high.
On the other hand, if there is a slowdown in the market or investors are confused, then the GMP can be low. Finally, the IPO’s price band and issue size also impact GMP. If the price band seems reasonable and the issue size is small, investor demand may be high, leading to an increase in GMP.
