IPO Grey Market Premium (GMP): A Closer Look at Current and Upcoming IPOs

When it comes to investing in Initial Public Offerings (IPOs), one term that often crops up is “Grey Market Premium” or GMP. Understanding GMP is crucial for investors as it provides insights into market sentiment and potential listing gains. In this article, we’ll explore what GMP is and take a closer look at the GMP of some current and upcoming IPOs.

What is Grey Market Premium (GMP)?

Grey Market Premium (GMP) is the difference between the price at which shares of an IPO are traded in the unofficial or secondary market (grey market) and the IPO’s issue price. It is an indicator of the demand and expectation among investors regarding the IPO’s performance after listing on the stock exchange. A positive GMP suggests that investors anticipate listing gains, while a negative GMP may indicate a lack of enthusiasm.

Current and Upcoming IPOs: GMP Analysis

Here’s a table providing details of the price, IPO GMP, and GMP percentage of some current and upcoming IPOs:

1. Manoj Vaibhav Gems ‘N’ Jewellers: This IPO is priced at Rs. 215, with a GMP of Rs. 7, which translates to a GMP percentage of 3%. A positive GMP suggests mild investor interest.
2. JSW Infrastructure: With an IPO price of Rs. 119 and a GMP of Rs. 27, this IPO boasts a substantial GMP percentage of 23%. This indicates strong demand and potential listing gains.
3. Updater Services Limited: This IPO is priced at Rs. 300, but it currently shows no GMP, implying that the secondary market expects the shares to trade at the IPO price.
4. Valiant Laboratories IPO: Priced at Rs. 140, this IPO has a GMP of Rs. 18 and a GMP percentage of 13%, indicating moderate investor interest.
5. Plaza Wires IPO: With a low IPO price of Rs. 54 and a GMP of Rs. 14, this IPO has a substantial GMP percentage of 26%, suggesting strong market enthusiasm.