What is IPO GMP (Grey Market Premium)?
GMP is the unofficial premium at which an IPO's shares trade before they list. It is a rough sentiment gauge, not a prediction of the listing price.
Updated 1 September 2026
Grey Market Premium (GMP) is the extra amount, over the IPO issue price, that buyers are willing to pay for allotted IPO shares in an informal market before the stock officially lists. If an IPO is priced at ₹100 and the GMP is ₹30, dealers are quoting ₹130 for the shares — an implied listing gain of about 30%.
Where does the "grey market" happen?
There is no exchange, clearing house or regulator. It is a network of dealers, mostly in a few trading hubs, who quote two numbers by word of mouth: the GMP (per share) and the Kostak / Subject-to-Sauda rates (per application). Deals settle on trust. SEBI does not recognise or oversee any of it.
Why GMP moves all day
- Subscription news — heavy QIB or NII bidding pushes GMP up; a weak retail response pulls it down.
- Broader market mood on the day.
- Thin volume — a handful of quotes can swing the "number" sharply.
Because of this, a single GMP figure is a snapshot. Platform stores a history so you can see the trend rather than one reading.
GMP is not a forecast
Studies of past issues and plain observation both show GMP is an unreliable predictor. Issues with a strong GMP have listed flat or below par; issues with almost no GMP have popped. It can also be deliberately inflated to create hype around a weak issue. Use it as one weak signal alongside the price band, financials in the RHP, and the live subscription split.
How Platform reports GMP
Different trackers publish slightly different GMPs. Platform shows the figure from the leading tracker as the headline — the same number you'd see if you checked that site directly — and lists what every other source is quoting, plus the spread between them. A wide spread means low confidence.
Related reading
Platform is an independent aggregator, not affiliated with NSE, BSE, SEBI or any registrar. This article is general information, not investment advice. See the disclaimer.