Grey Market Premium — or GMP — is one of the most-watched numbers in the Indian IPO community. Before a company officially lists on NSE or BSE, its shares change hands informally in the grey market. The premium at which these shares trade above the issue price is the GMP.
How Is GMP Calculated?
If an IPO has a price band of ₹100–₹105 and the GMP is ₹30, the grey market is pricing shares at ₹135. That is an estimated listing gain of roughly 28.6% over the issue price. IPOLyst tracks this number daily across all active IPOs.
What Drives GMP Up or Down?
Several factors push GMP higher: strong subscription numbers (especially QIB oversubscription), a hot sector (defence, EV, AI), positive anchor investor response, and bullish broader market sentiment. Conversely, weak financials, promoter selling, or a weak Nifty can drag GMP lower — or even into negative territory.
Is GMP Reliable?
GMP is an informal, unregulated indicator — it is not guaranteed. Studies of Indian IPOs show that high GMP at subscription close correlates with strong listing day gains roughly 65–70% of the time. However, GMP can swing sharply in the 24–48 hours before listing based on market mood. Use it as one signal among many, not as a certainty.
How to Read GMP on IPOLyst
Every IPO card on IPOLyst shows the current GMP in rupees alongside an estimated listing gain percentage. Green means positive; red means negative (also called kostak at a discount). We update this data throughout the day so you always have the latest picture before making your application decision.
Bottom Line
GMP is a real-time crowd estimate of listing price. A high GMP with strong QIB subscription is the strongest positive signal available before listing. Always combine GMP data with the company's fundamentals, valuation, and your own risk appetite before applying.