What is IPO GMP (grey market premium)?

Updated 19 October 2026

Grey market premium (GMP) is the amount above the issue price at which IPO shares are said to change hands informally, before they list. If an IPO is priced at ₹100 and the GMP is ₹20, the grey market expects a listing around ₹120.

How estimated listing is calculated

Estimated listing price = upper end of the price band + GMP. The percentage is GMP divided by the upper price. That is all the "Est. listing" figure on our cards means.

Why you should not rely on it

• The grey market is unofficial and unregulated — there is no exchange, no record and no investor protection.
• Figures come from market chatter and differ between sources.
• GMP can swing sharply in the last days before listing, and actual listing prices often differ from it.
• It reflects short-term sentiment, not the company's business or valuation.

A better way to judge an IPO

Look at the business, its financials, the valuation against listed peers, how the money raised will be used, and the risk factors in the RHP. Subscription by institutional investors (QIB) is a more reliable signal of professional interest than GMP.