It’s an unofficial space where IPO shares trade before listing — not illegal, but unregulated. Deals happen through brokers and networks, not the stock exchange.
What Is Grey Market Premium (GMP)?
GMP is the extra price investors are willing to pay for IPO shares before listing.
Example: Issue Price ₹100 → Grey Market Price ₹130 → GMP = ₹30.
Kostak Rate & Subject to Sauda
Kostak Rate: Fixed payout for your IPO application — guaranteed.
Subject to Sauda: Paid only if you get allotment — higher risk, higher reward.
What Influences GMP?
Strong company fundamentals, high demand, market optimism, big-name investors, and trending sectors — all push GMP higher. Weak sentiment drags it down.
The Paytm Lesson: GMP ≠ Success
Paytm’s 2021 IPO: Expected ₹2,500 → Listed ₹1,960 → Crashed to ₹614. Investors down 60%+
SEBI’s Next Move
SEBI may launch a regulated pre-IPO trading platform — bringing transparency, investor protection, and fairness to grey market activity.
Read Now
Understand the truth behind Grey Market Premiums, risks, and real success factors. Don’t let hype decide your money. Facts should. Read the complete guide