FREE Account Opening + No Clearing Fees
Loading...

How grey market premium is calculated?

SME IPO Enquiry

SME Company Owners
We could help you get listed on the stock market.

Contact us Today

Check our SME IPO Guide New

The grey market premium in an IPO is calculated based on the supply and demand for the shares. If the demand for an IPO is high, the GMP can be set higher and vice versa. For example, if the issue price of an IPO is Rs 100 and the demand for the IPO is very high, the GMP could be set at Rs. 198, which means that investors are willing to buy the shares of the IPO for Rs 298.

The grey market premium is also largely influenced by market sentiment and is sometimes manipulated.

 

SME IPO Enquiry  SME IPO Enquiry

 


Comments

Add a public comment...