What is GMP of IPO?

The Gross Market Premium (GMP) of an Initial Public Offering (IPO) is a crucial financial metric used in the context of stock market offerings.

When a company decides to go public by offering its shares to the public for the first time, it conducts an IPO. During this process, the company's shares are priced and made available for purchase by investors.

The GMP of an IPO represents the difference between the final issue price (the price at which shares are offered to the public) and the face value of those shares. In other words, it's the premium that investors are willing to pay over the nominal or face value of the shares.

A positive GMP indicates that the demand for the company's shares is strong, and investors are willing to pay a premium to acquire them. On the other hand, a negative GMP suggests that the shares are priced below their face value, which might signal weak demand or other factors affecting investor sentiment.

The GMP is closely watched by both issuers and investors as it provides insights into market sentiment and the potential success of the IPO. It can influence investment decisions and is often considered along with other factors when assessing the attractiveness of an IPO.

In summary, the Gross Market Premium (GMP) of an IPO is the premium or additional amount that investors are willing to pay over the face value of the shares, and it serves as an indicator of market demand and investor sentiment.

Latest Mainboard IPO GMP: Updated as of 8-Sept-2023

Latest SME IPO GMP: Updated as of 8-Sept-2023

Important aspects about IPO GMP & Grey Market

Investors often look at IPO GMP as an indicator of market sentiment and the likely listing price of an IPO. A higher GMP suggests strong demand, while a lower GMP may indicate weaker demand.

The IPO GMP is not regulated by any official authority and is purely based on the demand and supply dynamics in the unofficial grey market.

Keep in mind that investing in IPOs, especially based on grey market information, involves risks, and it's essential to conduct thorough research and consider your investment goals before participating in IPOs.

Past IPO Grey Market Premium of IPOs for the year 2022-2023: