What Is IPO GMP? Grey Market Premium Explained
IPO guide
By IPO GMP Status desk · Updated 31 October 2026 · How we compile these figures
IPO GMP — the grey market premium — is the extra amount over the issue price that people in the unofficial market are willing to pay for an IPO's shares before they list. It is the most watched number in the days before a listing, and the most misread.
What GMP means
Before an IPO lists on NSE or BSE, its shares cannot be traded on the exchange. The grey market is an informal, unregulated market where dealers quote a price for those shares anyway. The premium is how much above the issue price that quote is.
If an IPO's price band tops out at ₹150 and the GMP is ₹37, the grey market expects the share to be worth about ₹187 on listing day.
How to read it: expected listing price and gain
Expected listing price = upper end of the price band + GMP. Expected gain = GMP ÷ issue price × 100.
| Issue price | ₹150 |
|---|---|
| GMP | ₹37 |
| Expected listing price | ₹187 |
| Expected gain | 24.7% |
For one lot, multiply the GMP by the lot size: a ₹37 GMP on a lot of 100 shares points to about ₹3,700 per lot. The live GMP board shows these figures for every open and upcoming IPO.
Why GMP changes every day
The premium moves with demand. A strong subscription, a rising stock market and good news about the company push it up; a weak market or poor demand pulls it down. It often moves most on the last day of bidding and just before listing, which is why it is worth checking more than once.
How reliable is GMP?
GMP is a sentiment indicator, not a promise. It often points the right way, but the actual listing price can be well above or below it — especially when the market turns between the close of bidding and listing day. Past listings against their GMP are on the IPO performance page.
The grey market is not regulated by SEBI or the exchanges. Trading in it carries real risk, and nothing on this site is a recommendation to buy, sell or apply.
GMP, Kostak and Subject to Sauda
Besides the premium on the share, the grey market also quotes prices for whole applications — Kostak and Subject to Sauda. They are explained in Kostak and Subject to Sauda.
Frequently asked questions
What is GMP in an IPO?
GMP, or grey market premium, is the amount above the issue price at which an IPO's shares are quoted in the unofficial grey market before they list on the exchange.
How is the expected listing price calculated from GMP?
Add the GMP to the upper end of the price band. With a ₹150 issue price and a ₹37 GMP, the expected listing price is about ₹187.
Is GMP accurate?
GMP is only an indicator of demand. The actual listing price can be higher or lower, and the grey market is unofficial and unregulated.
Can GMP be negative?
Yes. A negative GMP means the grey market expects the share to list below its issue price.
More IPO guides
- Kostak and Subject to Sauda in IPO: Meaning ExplainedWhat Kostak and Subject to Sauda mean in the IPO grey market, how they differ from GMP, and the risks of selling an application before allotment.
- How to Check IPO Allotment Status for Multiple PAN CardsApplied for an IPO from several family members' PANs? Check the allotment status of every PAN together in one tap instead of one by one on the registrar's site.
- How IPO Allotment Works: The Retail Lottery ExplainedHow shares are allotted in an IPO: the retail lottery, small and big NII, QIBs, the T+3 timeline, and what decides your chance of getting an allotment.
- SME IPO vs Mainboard IPO: What Is the Difference?SME and mainboard IPOs compared: where they list, issue size, lot size and minimum investment, liquidity and risk — what to know before applying.
- How to Apply for an IPO with UPI: Step by StepApply for an IPO with UPI through your broker app: placing the bid, approving the UPI mandate, cut-off times, the ₹5 lakh UPI limit and what happens after.
Nothing here is investment advice; see the disclaimer.