FREE Account Opening + No Clearing Fees
Loading...

How grey market premium is calculated?

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

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.


Comments

Add a public comment...