June 20, 2025: As interest in initial public offerings (IPOs) continues to surge among retail investors, many are closely watching the Grey Market Premium (GMP) as an early indicator of listing performance. GMP refers to the premium at which IPO shares are being traded unofficially before they are listed on the stock exchange.
Unlike stock exchanges that are regulated by SEBI (Securities and Exchange Board of India), the grey market is entirely unofficial and unregulated, and GMP values are based purely on demand and supply among market participants.
No Official Source for GMP Data
There is no government-approved or SEBI-authorized platform for tracking GMPs. These prices are typically gathered from brokers, small-scale traders, and market circles that monitor pre-listing demand. While GMPs can offer a glimpse into investor sentiment, they are speculative and should be interpreted with caution.
A Trusted Resource
Various websites offering GMP data. It provides GMP updates for upcoming and ongoing IPOs, often accompanied by expected listing gains, subscription status, and financials of the issuing company.
Investors often turn to this site to:
- Track day-wise GMP movement
- Compare past IPO GMP vs actual listing gains
- Read user reviews and discussions
Other websites and YouTube channels also report GMP figures, but their reliability can vary.
Expert Advice: Use GMP as a Sentiment Indicator, Not a Decision Maker
Market analysts warn against using GMP as the sole basis for investment. “GMP reflects market buzz, not business fundamentals. Relying too much on it can be risky, especially in volatile markets,” says a Mumbai-based SEBI-registered advisor.
Bottom Line
While GMPs offer valuable insight into the likely listing trajectory of an IPO, investors are advised to do their own due diligence. Check fundamentals, review red herring prospectuses, and consult financial advisors before making decisions — especially since grey market data operates outside regulatory oversight.