Grey Market Premium is the unofficial premium quoted over an IPO's upper price band in India's grey market — informal pre-listing trading networks operated by dealers in Ahmedabad, Mumbai, and Surat. If the upper price band is ₹300 and GMP is ₹85, the grey market is pricing the IPO to list around ₹385.
GMP is not exchange-regulated, not SEBI-recognised, and not a guaranteed return. Quotes come from informal dealer networks and are aggregated by financial news sites. GMP fluctuates daily based on subscription momentum, anchor allocations, broader market sentiment, and issuer-specific news flow during the IPO window.
GMP is best read as one sentiment data point alongside subscription multiples and fundamentals — never alone. Historically, GMP has overestimated actual listing gains by roughly 30% on average and underestimated them about 25% of the time. Treat GMP as a market mood reading, not a recommendation.