If you are planning to apply for an IPO, one term you will hear almost every day is IPO GMP. Many investors make decisions based on it, but very few actually understand what it means and how reliable it is.
In this guide, we will explain IPO GMP in simple language, how to use it smartly, and why platforms like ipowatch are popular for tracking it.
What is IPO GMP? (Grey Market Premium)
IPO GMP stands for Grey Market Premium.
It is the extra price at which IPO shares are traded unofficially before they get listed on the stock exchange.
For example:
If an IPO price is ₹100 and GMP is ₹40, it means people are willing to buy that share at ₹140 in the grey market.
So expected listing price =
IPO price + GMP = Possible listing price
Why is IPO GMP Important for Investors?
IPO GMP gives you a quick idea about market sentiment.
High GMP usually means:
Strong demand
Good listing gains expected
Positive investor interest
Low or negative GMP means:
Weak demand
Risk of poor listing
Market not confident
That’s why many retail investors check ipowatch daily before applying for any IPO.
Is IPO GMP Always Accurate?
Short answer: No. But it’s useful.
IPO GMP is:
Unofficial
Based on demand and rumors
Influenced by market mood
Sometimes:
High GMP IPO lists flat
Low GMP IPO gives surprise profits
So IPO GMP should be used as:
A reference, not a final decision tool.
How to Check IPO GMP & Status of IPO Allotment
You can track IPO updates from:
ipowatch
NSE & BSE official websites
Broker platforms
After applying, you can check:
status of allotment of ipo
status of ipo allotment
using your PAN number on the registrar’s website.
This helps you know:
Whether you got shares
How many shares are allotted
Refund status
Smart Strategy to Use IPO GMP
Professional investors follow this rule:
Check IPO GMP trend
Check company fundamentals
Check subscription data
Then apply
Never apply only because GMP is high.
A good IPO decision =
GMP + Financials + Market conditions
IPO GMP vs Long-Term Investing
IPO GMP is mainly for:
Short-term listing gains
If you are a long-term investor, focus more on:
Company business model
Revenue growth
Profitability
Industry potential
GMP won’t matter after 1–2 years.
IPO GMP is like a temperature indicator of the market.
It tells you how hot the demand is, but not whether the company is truly strong.
Use it smartly, track it on iPoWatch, and always combine it with real research.
IPO GMP should guide your decision, not control it.
