All Grey Market IPO Capillary Technologies, Fujiyama Power Systems, Tenneco Clean Air, PhysicsWallah, Emmvee Photovoltaic, Pine Labs, Groww,
Current IPO GMP Today Live with Estimated Listing Price 13 November 2025
| Stock Name | Price | GMP | Gain | Listing Price |
|---|---|---|---|---|
| Capillary Technologies IPO | 577 | – | – | |
| Fujiyama Power Systems IPO | 228 | – | – | |
| Tenneco Clean Air IPO | 397 | 68 | 17% | |
| PhysicsWallah IPO | 109 | 2 | 2.% | |
| Emmvee Photovoltaic IPO | 217 | 6 | 9% | |
| Pine Labs IPO | 221 | 2 | 1.36% | |
| Groww IPO | 100 | 6 | 16% | |
| Lenskart Solutions IPO GMP | 402 | 10 | 21% | |
| Studds Accessories IPO | 585 | 67 | 11% | |
| Orkla India IPO | 730 | 95 | 13% | |
IPO Grey Market: Understanding the Unofficial Trading Buzz Before Listing
The initial public offering (IPO) journey is exciting, but did you know there’s a pre-listing market where trading happens before shares officially hit the stock exchange? This is the IPO grey market, a somewhat mysterious and informal arena where investors try to gauge the potential success of an upcoming IPO. While not regulated, its activity offers a peek into market sentiment and the demand surrounding a particular offering.
Think of the grey market as a pulse check before the real race begins. Two key terms to understand within this space are the Grey Market Premium (GMP) and the Kostak Rate (also referred to as Subject to Sauda).
So, how does this pre-listing buzz work, and what can it tell us? Let’s delve deeper.
Decoding the IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) is essentially the premium investors are willing to pay over and above the IPO issue price in the grey market. It represents the difference between the trading price of the IPO shares in this informal market and the official IPO price.
For example, if an IPO is offered at ₹300 per share, and investors are willing to pay an extra ₹150 in the grey market to acquire those shares before listing, the GMP is ₹150.
Many believe the GMP is an indicator of potential listing gains. Using the same example, investors might anticipate the shares listing around ₹450 (₹300 issue price + ₹150 GMP). While there’s no guarantee that the actual listing price will perfectly align with the GMP, it serves as a significant indicator, helping investors form expectations and potentially influencing their investment decisions. It reflects the market’s anticipation and excitement (or lack thereof) around the IPO.
Navigating the Realm of Grey Market Dealers
Grey market transactions are facilitated by grey market dealers. These are essentially individuals who operate within this unofficial, over-the-counter market, connecting buyers and sellers of IPO shares. Due to the unregulated nature of this space, finding officially registered dealers is uncommon.
Instead, you’ll likely need to rely on local networks and contacts to identify individuals involved in grey market activities. These dealers act as intermediaries, helping you find buyers or sellers for your IPO applications or shares. One might also seek information and potential connections on relevant online forums and discussion pages related to IPOs.
How Trading Unfolds in the Grey Market
Trading in the IPO grey market typically commences with the announcement of the IPO price band and continues until the shares are listed on the stock exchange. Here’s a glimpse into the characteristics of this informal trading environment:
- Unofficial and Unregulated: This is a key point to remember. The grey market operates outside the purview of regulatory bodies.
- Telephone-Based Transactions: Traditionally, deals are often conducted via phone calls.
- Cash Settlements: Transactions are generally settled in cash, sometimes utilizing the services of “Angadias” (traditional couriers specializing in cash transactions).
- Trust-Based System: Deals heavily rely on mutual trust between the parties involved.
- Round-the-Clock Availability: The market operates virtually 24/7.
- No Regulatory Oversight: As mentioned, no official organization oversees grey market trading.
- Informal Agreements: Formal contracts are absent; agreements are based on understanding and trust.
- Three-Party Involvement: Typically, a buyer, a seller, and a dealer are involved in each transaction.
To participate, an investor first needs to connect with a grey market dealer. Given the reliance on trust, dealers often build their clientele through referrals and established relationships. Once a dealer is identified, orders can be placed over the phone.
Trading activity usually begins shortly after the IPO announcement and continues until the day before listing. Settlement often occurs around 9:45 AM on the listing day. Once the IPO is officially listed, the grey market window closes for that particular offering.
Notably, there’s a 90-day expiry period for grey market trades. If the IPO doesn’t occur within 90 days of the transaction date, the deal is typically canceled.
On the listing date, dealers reconcile their positions based on their net delivery obligations. Trades are usually tracked using spreadsheets or basic tally tools. On the settlement day, Angadias facilitate cash collection or distribution as needed.
It’s crucial to acknowledge the inherent risks. If a counterparty defaults on their obligation, recourse is limited due to the informal nature of the market.
Decoding the IPO Grey Market Rate: GMP’s Positive and Negative Signals
The IPO Grey Market Premium (GMP) can be either positive or negative, each offering a different perspective on the potential listing.
- Positive or High GMP: A positive or high GMP generally suggests that the IPO might perform well upon listing, potentially leading to a significant listing gain. For example, if the IPO issue price is ₹200 and the GMP is ₹99, the listing might be expected around ₹299 (approximately a 49% gain).
- Low or Negative GMP: Conversely, a low or negative GMP might indicate investor uncertainty about the stock’s post-listing performance. This could mean the listing is expected to occur at a discount. For instance, if the IPO issue price is ₹200 and the GMP is -₹80, the listing might be anticipated around ₹120.
In essence, the GMP acts as a barometer of market sentiment towards a particular IPO. A higher GMP often reflects greater optimism and anticipated demand, while a lower or negative GMP might signal caution or a lack of enthusiasm. However, keep in mind that the grey market is not an official predictor, and the actual listing performance can vary significantly.