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How to sell IPO applications in the grey market?

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IPO applications are sold on the grey market with the help of local dealers. IPO applications are sold at Kostak Rate or Subject to Sauda price.

Trading on the grey market is done either by trading IPO shares or by trading IPO applications.

Trading in IPO shares is done at the GMP. Let us take an example to understand this. If the IPO issue price is Rs 150 and the GMP is Rs 80, the grey market buyer is willing to pay Rs 230 per share to the seller of the IPO shares. However, if the seller does not receive any shares at the allotment, the deal is cancelled.

IPO applications are traded at Kostak Rate or Subject to Sauda price. If an investor has applied for 100 shares at Rs 150, the value of the IPO application is Rs 15,000. In the grey market, there is an investor who is very interested in the said share and is willing to pay Rs 1,000 as Kostak to buy the entire IPO application. After the commitment, the buyer has to pay Rs 1,000 to the seller irrespective of the allotment. If the seller receives the allotment, he has to pay the listing gains/losses of Rs 1,000 to the buyer or transfer the shares for Rs 1,000 of the IPO application amount.

In the Kostak rate, there is a risk of allotment as the buyer needs to pay the Kostak rate even when the seller does not receive the allotment. So, to secure the risk to some extent comes subject to sauda in the picture wherein the deal is not done until the seller of the IPO application is allotted/receives shares. However, the price of subject to sauda is higher than that of Kostak rates.

Each time a seller and a buyer exchange an IPO application, any associated gain or loss is transferred to the buyer.


27 Comments

27. HIMANSHU S   I Like It. |Report Abuse|  Link|November 4, 2024 3:30:15 PMReply
HELLO EVERYONE !!
IF ANYONE WANT TO SELL THEIR IPO APPLICATION PLEASE CONTACT US ON THE NUMBER GIVEN BELOW IN A BEST RATES@ ...
26. Sparsh Agarwal   I Like It. |Report Abuse|  Link|October 28, 2024 1:30:56 AMReply
Applications for sale please contact
25. Sahil   I Like It. |Report Abuse|  Link|September 8, 2024 7:39:39 PMReply
Any contact for Agent to sell on Grey market ?
25.1. A. Singh   I Like It. |Report Abuse|  Link|September 12, 2024 8:15:35 PM
share your contact details, i"ll call you back to purchase your application.
24. Rohit   I Like It. |Report Abuse|  Link|September 21, 2024 4:08:20 PMReply
i have an good deal for the buyers ,we can have a deal with just application orelse alloted applications too.....
24.1. ADITYA   I Like It. |Report Abuse|  Link|September 23, 2024 11:47:25 AM
Hello you are interested on Pelatro Limited or you know someone who want to buy I have offer price 260 rs
24.2. Vinay Yenagandula   I Like It. |Report Abuse|  Link|October 19, 2024 2:21:07 PM
Hi Rohit,
I want to sell Hyundai 2 IPO allotment, so if your interested, please ping me we can business together.
23. Nitin   I Like It. |Report Abuse|  Link|October 25, 2024 3:57:30 PMReply
I want to sale 135 shares of Waree Tech
22. Nitin   I Like It. |Report Abuse|  Link|October 25, 2024 3:56:41 PMReply
I wnt to sell my waree shares allotment
21. Raj   I Like It. |Report Abuse|  Link|October 24, 2024 3:32:20 PMReply
Anyone want to buy waree applications in Vadodara,Gujarat?
20. Sainath   I Like It. |Report Abuse|  Link|October 19, 2024 7:11:14 PMReply
I want to sell my 49 hundai shares if any one interested please contact ping me
19. rajeev   I Like It. |Report Abuse|  Link|October 19, 2024 6:54:59 PMReply
i want to sell my HYUNDI MOTOR allotment
18. Vinay Yenagandula   I Like It. |Report Abuse|  Link|October 19, 2024 2:24:47 PMReply
Hi,
I want to sell 2 IPO hyundai allotment, if anyone interested, please ping me.
17. Mayank   I Like It. |Report Abuse|  Link|September 18, 2024 9:58:25 PMReply
I wanted to sell my application,how do i contact you?
16. shreenathjii   I Like It. |Report Abuse|  Link|October 2, 2024 11:55:12 PMReply
I want to sell my IPO Applications ( having more than 40+ accounts including big HNI )
Interested sellers can act
Let’s have the business together…
15. Raja   I Like It. |Report Abuse|  Link|October 18, 2024 10:06:25 PMReply
Anyone interested in Lakshya Powertech Limited IPO?
14. Shikhar goenka   I Like It. |Report Abuse|  Link|September 17, 2024 3:03:09 PMReply
I also want to sell applications
14.3. hussain tinwala   I Like It. |Report Abuse|  Link|September 27, 2024 4:58:09 PM
I wanted to sell my hyundai ipo application
14.4. Aakash Saini   I Like It. 1|Report Abuse|  Link|October 1, 2024 11:37:16 AM
Bro i have 20 demat accounts with different pan anyone interested in buying IPO applications?
13. Manan Shukla   I Like It. |Report Abuse|  Link|September 20, 2024 6:59:21 PMReply
I want to sell my smell ipo application
12. Preet jain   I Like It. |Report Abuse|  Link|September 18, 2024 12:43:43 PMReply
How can I contact you I want to sell the ipo application?
11. Raj   I Like It. |Report Abuse|  Link|September 14, 2024 2:25:06 PMReply
i want to sell ipo applications
i have more than 40 applications
intrested buyers can contact me via reply
11.1. Umang   I Like It. 1|Report Abuse|  Link|September 17, 2024 8:01:35 PM
Hey contact me we can do business of application
10. Gaurav   I Like It. |Report Abuse|  Link|December 24, 2023 4:57:47 PMReply
I want sell application of Creda Marketing and Happy Forging? What to do?
9. Amit   I Like It. |Report Abuse|  Link|September 13, 2024 2:56:21 PMReply
Want to sell ipo application please share agent details
8. Vinod sharma   I Like It. |Report Abuse|  Link|February 1, 2024 7:38:06 PMReply
WANTED TO SELL MY IPO APPLICATION IN DELHI HOW CAN I
8.1. Ishaan   I Like It. |Report Abuse|  Link|September 9, 2024 5:28:16 PM
Did you find any contact
7. Omkar Mithari   I Like It. |Report Abuse|  Link|September 8, 2024 11:54:46 PMReply
How can I sell my application at kostak
6. Tilak soni   I Like It. |Report Abuse|  Link|August 30, 2024 1:37:36 AMReply
I wanna sell some ipo applications
5. Varsha   I Like It. |Report Abuse|  Link|August 26, 2024 4:01:50 PMReply
I want to sell my application in GM. How can I do the same?
4. Vinayjaiswar   I Like It. |Report Abuse|  Link|August 21, 2024 8:42:57 AMReply
I want sell ipo application in grey market
3. Abhishek tripathi   I Like It. |Report Abuse|  Link|May 15, 2024 5:45:11 PMReply
How to sell IPO application in gray market premium.
3.1. Dilip   I Like It. |Report Abuse|  Link|August 8, 2024 1:29:33 AM
Application to be sell
2. sumeet   I Like It. |Report Abuse|  Link|December 21, 2023 9:49:02 AMReply
Hi,

I want to know about Sauda and how can deal it? Buz for this we need to contact with Agent so please share details...
2.1. Abhishek tripathi   I Like It. |Report Abuse|  Link|May 15, 2024 6:38:40 PM
Hi,
Abhishek tripathi, I want to sell my IPO application.
1. nasir   I Like It. |Report Abuse|  Link|December 28, 2023 5:12:20 PMReply
I WANTED TO SELL MY IPO APPLICATION HOW CAN I
1.1. Pratima   I Like It. |Report Abuse|  Link|February 2, 2024 10:20:10 PM
How to sell IPO ?
Using our demate account