How GMP is quoted
A GMP of ₹20 on an issue priced at ₹100 means informal traders are willing to pay about ₹120 per share before listing. Some quote it as a percentage of the issue price instead.
Why it is unreliable
- It comes from a small, informal market with no published volumes.
- It can be moved by a few participants and can swing sharply in a day.
- It is reported second-hand, and different sources quote different numbers for the same day.
What to look at instead
Category-wise subscription from the exchange, the valuation at the upper end of the band and the things worth checking in the RHP tell you far more about an issue. Each IPO page on IPO24by7 shows these with their sources.
Source: IPO24by7 explainer. GMP has no primary source.
Frequently asked questions
Is IPO GMP legal?
Grey market trades happen outside the exchange system and are not regulated by SEBI. They carry no protection if the other side does not pay.
Does a high GMP mean a listing gain?
No. GMP reflects informal sentiment and can change sharply, sometimes in a single day. Listing prices have often been far from the last reported GMP.
Where does IPO24by7 get GMP?
There is no official source for GMP. If we show a figure, it carries its source and time and is clearly marked as unofficial.