What is IPO GMP (Grey Market Premium)? A Beginner's Guide

Grey Market Premium (GMP) is the price at which IPO shares trade unofficially before they list on the stock exchange. For example, if an IPO's upper price band is ₹100 and the GMP is ₹30, the grey market expects it to list around ₹130. GMP reflects demand and sentiment, but it is unofficial, unregulated and can change rapidly. It is NOT a reliable predictor of the actual listing price and should never be the sole basis for an investment decision. Use GMP as one of many signals alongside the company's fundamentals, valuation, subscription data and your own research. GMP is indicative only and not investment advice.