Glossary
GMP (grey market premium): meaning, example and why it matters
The unofficial price premium at which an IPO's shares are said to trade in the grey market before listing. It is not regulated or confirmed by exchanges, can change quickly, and is not a guarantee of listing price.
Worked example
If an IPO's issue price is ₹100 and the grey market is said to quote a premium of ₹15, the GMP implies ₹115, or 15% above the issue price. The actual listing price can be higher, lower or even below the issue price.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
GMP is widely quoted around IPOs, but it is unofficial and unregulated, so it reflects what informal traders report rather than exchange data.
Related terms
See it in practice
Frequently asked questions
Is GMP regulated or reliable?
No. It comes from informal trading outside the exchanges, is not verified by SEBI or the exchanges, and often differs from the actual listing price.
Is this page investment advice?
No. GMP (grey market premium) is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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