I don''t think this is true. selling applications in grey market is based on the conditions that they have to deliver it to the buyer after allotment and seller only gets paid for what he/she deliver.
@DSR yeah thats true. But when you are applying for 16 applications and chances of allotment 2/16 then its better to sell all applications. If sold at 1000, no allotment,profit = 16000 If sold at 1000, (alloted 3/16) = 15000 notional loss
@dsforIPO: Thanks for pointing it out.. I was mistaken on that.
Grey market trading include :
Trading (selling or buying) IPO Applications at certain rate (premium) and Trading (selling or buying) allocated IPO shares before they list on stock exchanges.
So yes he could have earned 16K as profit for all his application without having to worry about listing day surprises.
Got 2/2. I think we have moved past checking the status of the application. Now the Forum member should move on to the listing day discussion. What should be the strategy? Hold or Sell?