Enter the World of IPO Grey Market Premium Imagine a secret stage where shares of brand‑new companies trade in whispers before their official debut. Welcome to the IPO grey market, a place of rumours, risk—and sometimes big rewards. Here, savvy investors watch the grey market premium to gauge demand and estimate listing surprises. What Is Grey Market Premium (GMP)? Grey Market Premium (GMP) is the extra amount investors pay above an IPO’s issue price.  For example, if an IPO is priced at ₹850 and someone offers ₹300 more per share, that ₹300 is the GMP of IPO.  Tracking IPO GMP todaygives a sneak‑peek into listing‑day sentiment—though it’s never a guaranteed predictor.  Treat grey market premium figures as speculative indicators, since they fluctuate with market mood.  How the IPO Grey Market Works Unofficial Traders & Dealers  An unregulated arena: deals happen share‑by‑share through trust.  Find dealers via word‑of‑mouth or niche forums.  Key Transaction Rates  GMP IPO: Per‑share premium over issue price.  Kostak Rate: Fixed rate for full IPO application lots, regardless of allotment.  Sauda Rate: Higher rate paid only if allotment is secured.  Settlement Process  Phone‑based deals; cash often moves via trusted couriers like Angadia.  No official paperwork—every IPO grey market trade relies on personal credibility.  Decoding Grey Market Metrics Grey Market Premium vs. Listing Price  Grey market premium shows investor eagerness; listing price is set officially by issuers and bankers.  A strong IPO grey market premium often—but not always—leads to a healthy listing pop.  Live vs. Upcoming GMP  Live IPO GMP reflects real‑time sentiment on trading day.  Upcoming IPO GMP are tentative estimates before the grey market opens.  Grey vs. Gray  In India you’ll see IPO grey market, while U.S. sources may call it the IPO gray market—both mean the same secret trading world.  Why Investors Watch GMP Pros:  Early access to potential profits  No application limits—trade as much as you like  Post‑subscription trading options  Cons:  Completely unregulated—high risk of fraud  No grievance forums or legal recourse  GMP today can swing wildly, risking losses