Indian IPO Grey Market Premium (GMP) refers to the informal market in which investors purchase and sell shares of a business before they are listed on the stock exchange. The grey market and IPO parallel market are other names for it.

The ipo grey market premium discussion from any stock exchange or regulatory body and operates outside of the legal system. Investor mood and conjecture on the demand for the IPO shares following listing are the key drivers of it.

Let’s see how to calculate grey market premium. If the grey market shows the rate of an IPO is ₹100 and the IPO price is around ₹200 then the estimated listing price will be around ₹300. Based on the calculation the listing gain will be 50% against the IPO price.

The listing of an ipo latest grey market premium might vary against the estimated listing price suggested by the grey market due to the bull/bear market or the demand for the company shares.