Meaning:
GMP stands for Grey Market Premium, which represents the extra amount that investors are willing to pay for an IPO share before it is officially listed on the stock exchange. It reflects market sentiment and expected listing gains.
Example:
If an IPO’s issue price is ₹100 and its GMP is ₹50, it means the share is expected to list around ₹150 (₹100 + ₹50).
Key Points:
• The grey market operates unofficially, outside stock exchanges.
• A high GMP often indicates strong demand and a potential listing gain.
• A negative GMP shows weak demand or possible listing losses.
• GMP can fluctuate daily based on subscription numbers, market mood, and fundamentals.
📈 In short: GMP = Investor excitement before the IPO hits the market!
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