IPO Watch 2022 | IPO Status Review Allotment Status

IPO Watch Grey Market Premium, Latest IPO GMP & Kostak Rates

Introduction: The latest IPO Watch Grey Market Premium (Gmp) and Kostak rates are now available. Get a quick overview of the latest rates and find out what they could mean for your investment.The grey market starts unofficially in the unregulated market after the IPO date and price band announcements. IPO Investors always look at the premium of an IPO watch before investing it but it might vary as per the market conditions, demand, and subscription numbers.

Section 1: What are the Latest Ipo Grey Market Premium (Gmp) and Kostak Rates?

The latest Ipo grey market premium (Gmp) and kostak rates are currently being traded at $1,811.00 and $1,711.00 per ounce, respectively. This represents a 19% increase over the previous Ipo grey market premium (Gmp) and kostak rates of $1,527.00 and $1,461.00 per ounce, respectively.

Section 2: What do these Rates Mean for Your Investment?

The Ipo Grey Market Premium, GMP and Kostak rates are all important metrics to consider when investing in an IPO. The Ipo Grey Market Premium is a measure of how much more an IPO is worth than the average stock on the grey market. The GMP rate is the global benchmark for the pricing of securities and is used by investment banks to price IPOs. The Kostak rate is a proprietary measure of liquidity for IPOs and is determined by the number of shares sold in the offering. By understanding these rates, investors can better understand how valuable an IPO may be and make informed investment decisions.

What is GMP Rates and Current IPOs

The current Ipo watch grey market premium, GMP and Kostak rates can be found on various online resources. These rates are often updated and can change quickly. It is important to verify the rates with a qualified source before making any investment decisions.

(Due to volatility in the Market the grey market premium might be volatile, stay invested in good IPOs)

IPO NameIPO GMPIPO PriceListing Gain
LIC IPO-₹30
Pharmeasy₹80
ESDS Software₹-₹-
GoAir₹-₹-
Skanray Technologies₹-₹-
GPT Healthcare₹-₹-
Delhivery₹-₹-
Mobikwik₹-₹-
Ruchi Soya₹-

The estimated listing price for a company’s stock that is going to be offered in an initial public offering (IPO) is calculated by adding a premium to the grey market rate. If the grey market rate is higher than the IPO price, then the estimated listing price will be higher than the IPO price. The listing gain is the difference between the IPO price and the estimated listing price.

If the grey market rate for an IPO is 100 rupees and the IPO price is 200 rupees, then the estimated listing price will be around 300 rupees. This means that the listing gain will be 50% against the IPO price.

Subject to Sauda Rates and IPO Watch Kostak

IPO NameKostakSubject
LIC IPO₹-₹-
Pharmeasy₹-₹-
ESDS Software₹-₹-
GoAir₹-₹-

The listing price of an IPO may vary from the estimated listing price suggested by the grey market due to the bull/bear market or the demand for the company shares. We have observed that some IPOs have had lower grey market prices but have listed with higher gains, while others have had higher grey market prices but have listed with lower gains. As the grey market is always one of the strong factors in calculating the gain from an IPO listing, we highly recommend that investors use the grey market rates for information purposes only; do not trade based on these numbers

Important Points to Consider about IPO Watch GMP:

  • The grey market transactions are unofficial, and this involves IPO watch investors and the stockbrokers. It depends on the trust between both parties.
  • Before applying for an IPO, read our IPO watch analysis.
  • The grey market rates are calculated and provided or sourced from the market research or the experts. The grey market rates are usually calculated and provided or sourced from the market research or the experts.
  • We recommend not trading in the Grey Market as it is illegal.
  • The Kostak Rate is the amount of extra money you get for selling your IPO watch application to someone else.
  • Do not subscribe to the IPO at the given price as it may change before listing.
  • Subscribe only if you are confident in the fundamentals of the company.

IPO Grey Market FAQs:

How can I buy or sell IPO applications in the grey market?

There are no official people or businesses associated with the grey market for IPO applications. Some brokers buy and sell IPO applications on Kostak Rates or Subject to Sauda Rates based on the IPO GMP. One should find local brokers who stay between buyers and sellers and do the grey market trading of IPO applications. Be aware of the rates and then do the buying or selling.

How to Calculate Grey Market Premium?

The grey market premium, also known as the GMP, is the price that is traded in the grey market before the IPO listing process. The calculation is done based on the company’s performance, its demand in the grey market, and the probability of the subscription. Let’s assume that if the X IPO price is fixed at ₹200 and the grey market is showing the rate of ₹100 it means the IPO might list at a higher price, such as ₹300.

Are Grey Market Stocks Safe?

There is no one definitive answer to this question. It depends on the broker or the trading person and their understanding of the risks involved. We suggest that it is not safe to trade in the grey market, as there may be fluctuations on a higher side. One needs to do it with precautions. As we suggest, just refer to the IPO GMP for the listing gain purpose. Be wise and trade in the primary market after listing only.

What is Subject to Sauda?

The Kostak rate states that the subject to sauda on an IPO application is the amount that the investors receive when they are allotted shares in the IPO. If someone buys or sells an IPO application subject to sauda, it means that they can get the said amount if they are allotted shares, otherwise the sauda will be canceled. In this case, the investor cannot fix their profit as it depends on the allotment. Again, if the investor is allotted shares and they sell the application around Rs. 10,000, and the profit goes up on the listing day to Rs. 15,000, then they should pay Rs. 5,000 to the person who bought the application.

What is Kostak Rate?

The Kostak rate is the price investors pay to the seller of an IPO application before the IPO listing. As the grey market reacts, the Kostak rates also react. One can buy and sell their full IPO application on the Kostak rate outside of the market and fix their profit. The Kostak rate applies to investors whether they get the IPO allotment or not.

The buyer should pay the Kostak rate for the IPO.If you applied for five different IPOs and each one sold for 1000 rupees, you would make a profit of 5000 rupees. If you are allotted shares in two of the IPOs, you would still make a profit of 5000 rupees. If you then sell the shares and make a profit of 10000 rupees, you would need to give the remaining profit of 5000 rupees to the investor who bought your application. This is the secure way to sell your application in the IPO grey market.

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 look at the grey market price of an IPO to get an idea of what the stock might be worth. The grey market works before the IPO listing and during the days from the IPO start date to the allotment date.The grey market premium (GMP) indicates how the IPO might react on a listing day, with an estimated price.

Let’s see how the calculation goes on. If the company comes up with an IPO of 100 rupees and the grey market premium is around 20 rupees, then we can assume that the IPO might list around 120 rupees on its listing day. But the fact is, there is no reliability. In most cases, IPO GMP works but in some cases, it’s 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.

Conclusion: The latest IPO Grey Market Premium (Gmp) and Kostak rates are now available. Get a quick overview of the latest rates and find out what they could mean for your investment.

Reference :- We have a team with analytical knowledge of IPO industry. At Tech99, We provide information about grey market premium, subscription, upcoming IPOs, SME IPOs and other vital information. Our portal Tech99 is mentioned on MoneyControl, CNBC18, News18, Economic times, and Businessupturn ipowatch.

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