What is IPO GMP and how to read it
GMP is the premium at which an IPO's shares trade unofficially before they list.
A GMP of 40 on a price band of 200 means the grey market expects a listing near 240. It is a sentiment signal, nothing more.
Limits to keep in mind
- The grey market is unofficial and unregulated.
- GMP can move every day and can differ between sources.
- A high GMP does not guarantee a listing gain, and a low one does not guarantee a loss.
Use it with other data
Look at subscription levels, price band, company financials and the market mood together. IPO Pilot shows GMP history next to subscription for each IPO.
General information only, not investment advice. Check dates and details in the official offer document and on the registrar or exchange website.