What is Grey Market Premium (GMP) in IPO?

Опубликовано: 14 Апрель 2026
на канале: Zerodha Varsity

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Grey Market Premium (GMP) is often used to gauge an IPO’s potential listing price—but can you really trust it? In this video, Aastha explains what GMP is, how it’s determined, why it fluctuates, and whether it’s a reliable indicator. She also covers Kostak Rate and Subject to Sauda to give you the full picture. Watch till the end before making your IPO investment decisions!

Time Stamps
00:00 Introduction
01:01 What is a Grey Market Premium?
01:39 When does the Grey Market start?
02:00 Who decides the Grey Market Premium?
02:38 Why does GMP fluctuate too much?
03:49 What is a Kostak Rate?
04:46 What is a Subject to Sauda?
05:35 Can you Trust GMP?
07:23 Key Takeaways
07:45 Conclusion

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