IPO Grey Market Premium, Latest IPO GMP & Kostak Rates

We have 3 IPOs to hit the market in January 2021. Indigo Paints (20 January), IRFC (18 January), Home First Finance (21 January) and Stove Kraft (25 January) to hit the market before budget. RailTel might hit the market soon. We can expect IPOs in the near term are KPR Agrochem, Lodha Developers, Aakash Educational Services, Century Metal Recycling, Ami Organics, ASK Investment Managers, Puranik Builders, Nihilent Technologies, Militec Machinery, Penver Products, Hinduja Leyland Finance, Srei Equipment Finance, PN Gadgil, Flemingo Retail, ReNew Power IPO gets SEBI's go-ahead for IPO. Checkout current IPO GMP Live with daily updates.

IPO Grey Market Premium

Live Grey Market Premium Today

IPO NameGMP TodayKostak SS
Indigo Paints
20-22 Jan
840-850950 7500
18-20 Jan
0.80-0.90250 500
Home First Finance
21-23 Jan
145-150550 2500
Stove Kraft
25-28 Jan
-- -
RailTel IPO
05-10300 -
Narmada Bio-chem
-- -
Ami Organics
-- -
Lodha Developers

Get daily updates of NSE India, Lodha Developers, Ami Organics, Narmada Bio-chem, Muthoot Microfin, Harsha Engineers, RailTel, Stove Kraft, Home First Finance, Indigo Paints, IRFC IPO Grey Market Premium. Check the live IPO GMP today.

Note for the Investors:

  1. IPO Grey Market Premium (IPO GMP) mention is valid for the specific date as mentioned in the header.
  2. We are not buying and selling IPO forms on IPO Grey Market.
  3. Kostak Rate is the premium one gets by selling his/her IPO application (in an off-market transaction) to someone else even before allotment or listing of the issue.
  4. Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamental of the companies

IPO Grey Market FAQs:

What is Grey Market Premium?

The "grey market premium" aka "IPO GMP" is a term people use in the IPO market to check what is the estimated price the IPO might list on. The grey market is unofficial but investors looking at the grey market price of an IPO to get the fixed gain of the stock. The grey market works before the IPO listing and during the days from IPO start date to the allotment date. The grey market premium indicates how the IPO might react on a listing day with estimated price. Lets see how the calculation goes on. If the company comes up with an IPO of ₹100 and the grey market premium is around ₹20 then we can assume that the IPO might list around ₹120 on its listing day. But the fact is, there is no reliability. In the most of cases IPO GMP works but in some cases its not. We have observed that if the IPO is in demand and the estimated HNI and QIB subscription is on a higher side, the IPO list around the given price with estimated IPO GMP.

What is Kostak Rates?

The Kostak rates is the amount that one investors pays to the seller of IPO application before the IPO listing. As the grey market reacts the Kostak rates also react that way. One can buy and sell their full IPO application on Kostak rates outside the market and fix their profit. The Kostak rates apply the investor get the IPO allotment or not, the buyer should pay the Kostak rates for the IPO. If one did 5 applications for one IPO and sold the same at ₹1000 per application it means he or she secured the IPO profit at ₹5000 rupees. If he gets the allotment in 2 application still his profit will be ₹5000. Now if he sells the stock and gets the profit around ₹10000 then he or she needs to give the remaining profit of ₹5000 to the investor who bought the application. This is the secured way to sell your application in the IPO grey market.

What is Subject to Sauda?

As per the Kostak rate, the Subject to Sauda on the application is the amount decided when the investors get the firm allotment on their IPO Application. If one buys or sells the IPO application on the subject to sauda it means one can get the said amount if one will get the allotment otherwise sauda will be canceled. In this one can not fix their profit as it depends on the allotment. Again if one get an allotment and he or she sold the application around ₹10000 and the profit goes high on listing day around ₹15000 then one should pay ₹5000 to the guy who bought the application.