Latest IPOWhat Is IPO GMP? Grey Market Premium Explained
Updated 20 Oct 2026 · 2 min read
GMP means grey market premium. It is the extra money people are ready to pay for an IPO’s shares before they list on the stock exchange. Many investors look at it to guess how an IPO may list.
GMP in one example
Say an IPO has a price band of ₹95–100 and its GMP is ₹25. People in the grey market are paying ₹25 more than ₹100 for each share. So the expected listing price is ₹100 + ₹25 = ₹125, a 25% gain.
Live example: Jio Platforms IPO has an upper price band of ₹1,119 and a GMP of ₹254 today, so its estimated listing price is ₹1,373. One lot of 12 shares would gain about ₹3,048. See its GMP trend.
How to work out the listing price and gain
- Estimated listing price = upper price band + GMP
- GMP % = GMP ÷ upper price band × 100
- Estimated gain per lot = GMP × lot size
For example, with a GMP of ₹25 and a lot of 150 shares, one lot could gain about ₹25 × 150 = ₹3,750 on listing, before charges.
What is the grey market?
The grey market is an unofficial market where people buy and sell IPO shares, or IPO applications, before listing. It works on trust between dealers. SEBI and the stock exchanges do not run or watch it, so nobody protects you if a deal goes wrong.
Why GMP changes
- Subscription: more bids usually push the GMP up.
- Market mood: when the Sensex and Nifty fall, GMPs often fall too.
- News: results, a big anchor investor or bad news about the sector.
GMP can change many times a day, and it can drop quickly just before listing.
How accurate is GMP?
We compared the last GMP before listing with the actual listing gain of the last 148 IPOs. The GMP pointed the right way (a gain, or no gain) for 102 of them (69%). But the size was often off: on average, the listing gain was 9.0 percentage points away from the GMP.
So use GMP as a sign of demand, not as a promise. See how GMP compared with recent listings.
GMP, kostak and subject to sauda
Next to GMP you may see kostak and subject to sauda. These are grey market prices for a whole IPO application, not for one share. Read kostak and subject to sauda explained.
Should you apply to an IPO because of its GMP?
GMP shows only short-term mood. It says nothing about whether the company is good for the long term. Look at the business, its profits, the price you pay (valuation) and the risks in the offer document. And remember that GMP can turn negative.
Frequently asked questions
Is GMP official?
No. GMP comes from the unofficial grey market. SEBI and the stock exchanges do not publish or check it.
Where can I see today’s GMP of all IPOs?
On our IPO GMP page, which lists every open and upcoming IPO with its GMP and estimated listing price, updated every 30 minutes.
What does a zero or negative GMP mean?
A zero GMP means the grey market expects the shares to list near the issue price. A negative GMP means it expects them to list below the issue price.
For information only, not investment advice.