IPO Grey Market Premium, Latest IPO GMP & Kostak Rates in 2020


More than 75 companies are planning to put up their IPO in the year 2020. Many IPO has been already executed this year and still many are on their way. Recently IRCTC IPO was stunning and gave about more than 100% listing gain to the investors. It is very confusing when we take the decision about which IPO should be subscribed. The Grey Market Price of IPO i.e. GMP helps us to find an approximate listing gain we would get from the issue. 

We expect many IPO to come in near term such as Lodha Developers, Mazagon Dock Shipbuilders, 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, KPR Agrochem, PN Gadgil, Flemingo Retail, ReNew Power and many more.

Updates:  SBI Cards IPO is coming soon in January 2020

IPO Grey Market Price on 09/03/2020

Get daily updates of NSE India, Lodha Developers, Mazagon Dock Shipbuilders, Ami Organics, Narmada Bio-chem, Muthoot Microfin, Antony Waste IPO Grey Market Premium. Check the latest 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

What is Grey Market Premium?

The grey market is a term people use in the IPO market. It means the stock of the company who came up with the IPO bought and sold outside the stock market. The grey market is unofficial but to get the fixed gain of the stock one can buy or sell their IPO application. The grey market works before the IPO listing and during the days of the IPO start and the allotment. The grey market premium indicates how the IPO might react on a listing day. If the company come up with an IPO or Rs.100 and the grey market premium is around Rs.20 then we can assume the IPO to list around 120 rupees on listing day. There is no reliability but in most of the cases the GMP works properly and IPO list around the given price.

What is Kostak Rates?

The kostak rates are the amount which one pays for the IPO application before the IPO listing. As the grey market reacts the kostak rates also reacts that way. One can buy and sell their full IPO application on kostak rates our side the market and fix their profit. The kostak rates apply in each condition if you get the allotment or not one should pay the kostak rates for the IPO. If one did 5 application for one IPO and the sold the same at Rs.2500 per application it means he or she secured the IPO profit at 12500 rupees. If he gets the allotment in 2 application still his profit will be the same. Now if he sells the stock which he got and gets the profit around 25000 then he or she needs to give the remaining profit to the guy who bought the application.

What is Subject to Sauda?

As kostak rates, the subject to sauda on the application is the amount decided to get the firm allotment. If one buy or sell 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 Rs.10000 and the profit goes high on listing day around Rs.15000 then one should pay Rs.5000 to the guy who bought the application.