The Indian IPO market continues to attract strong interest from retail investors, especially those looking for potential listing gains. One of the most closely followed indicators before an IPO listing is the Grey Market Premium (GMP).
GMP can provide an indication of how the market is informally valuing an IPO before it gets listed on the stock exchange. However, it is important to remember that GMP is unofficial and does not guarantee the actual listing price.
In this article, we look at the Top 10 IPOs by GMP, along with their issue price, estimated listing price, subscription status, lot size, investment required and potential profit per lot.
Top 10 IPO GMP Today
| IPO | GMP | Issue Price | Estimated Listing Price | Subscription | Lot Size | Investment | Potential Profit |
|---|---|---|---|---|---|---|---|
| Pranav Constructions | ₹44 | ₹124 | ₹168 | 12.26× | 120 | ₹14,880 | ₹5,280 |
| Kanohar Electricals | ₹218 | ₹632 | ₹850 | 2.05× | 23 | ₹14,536 | ₹5,014 |
| Rentomojo | ₹135 | ₹404 | ₹539 | — | 37 | ₹14,948 | ₹4,995 |
| Glass Wall Systems | ₹55 | ₹182 | ₹237 | 1.77× | 82 | ₹14,924 | ₹4,510 |
| Karamtara Engineering | ₹69 | ₹254 | ₹323 | — | 59 | ₹14,986 | ₹4,071 |
| LCC Projects | ₹33 | ₹146 | ₹179 | — | 102 | ₹14,892 | ₹3,366 |
| Steamhouse India | ₹18 | ₹81 | ₹99 | — | 185 | ₹14,985 | ₹3,330 |
| Asset Reconstruction Co. | ₹27 | ₹139 | ₹166 | — | 107 | ₹14,873 | ₹2,889 |
| Manipal Payment & Identity | ₹38 | ₹339 | ₹377 | — | 44 | ₹14,916 | ₹1,672 |
| Prasol Chemicals | ₹40 | ₹676 | ₹716 | 0.26× | 22 | ₹14,872 | ₹880 |
Estimated listing price = IPO upper price + current GMP. GMP values can change frequently.
What Is IPO GMP?
IPO GMP stands for Initial Public Offering Grey Market Premium.
Before an IPO is officially listed on NSE or BSE, its shares may be traded informally in the grey market. The premium at which these shares are traded compared with the IPO issue price is known as the GMP.
For example, if an IPO has an issue price of ₹400 and its GMP is ₹100:
Estimated listing price = ₹400 + ₹100 = ₹500
This indicates an informal premium of approximately 25%.
However, investors should not consider this calculation a guaranteed listing price.
Which IPO Has the Highest GMP Today?
Among the IPOs in our list, Kanohar Electricals has one of the highest absolute GMP figures at around ₹218.
With an issue price of ₹632, the estimated listing price based on the GMP would be approximately ₹850.
For one lot of 23 shares:
Investment = ₹632 × 23 = ₹14,536
Estimated profit = ₹218 × 23 = ₹5,014
This would represent an estimated gain of around 34.5% if the IPO actually listed at the GMP-implied price.
Pranav Constructions IPO
Pranav Constructions is another IPO attracting considerable attention.
With an issue price of ₹124 and a GMP of approximately ₹44, the estimated listing price works out to:
₹124 + ₹44 = ₹168
For a lot size of 120 shares, the potential gain based on the current GMP would be:
₹44 × 120 = ₹5,280
This makes it one of the most interesting IPOs for investors specifically looking at potential listing gains.
Rentomojo IPO GMP
Rentomojo has also been receiving significant attention in the IPO market.
With an issue price of around ₹404 and GMP of approximately ₹135, the estimated listing price comes to around ₹539.
For a lot size of 37 shares:
Investment = ₹404 × 37 = ₹14,948
Estimated GMP profit = ₹135 × 37 = ₹4,995
The actual listing price can, however, be significantly different from the GMP-implied price.
How Is IPO Listing Gain Calculated?
The calculation is straightforward.
Formula
Estimated Listing Price = IPO Issue Price + GMP
And:
Estimated Profit per Lot = GMP × Lot Size
For example:
If:
- Issue Price = ₹500
- GMP = ₹100
- Lot Size = 30 shares
Then:
Estimated Listing Price = ₹600
Estimated Profit = ₹100 × 30 = ₹3,000
This calculation only estimates the potential gain and does not include brokerage, taxes, or other applicable charges.
GMP vs Subscription: Which Is More Important?
Investors often look at both GMP and IPO subscription numbers.
GMP
GMP provides an informal indication of how the grey market is pricing the IPO.
Subscription
Subscription data shows how many times the shares offered have been bid for by investors.
For example, an IPO subscribed 10× has received bids for approximately ten times the number of shares offered in that category.
A combination of strong subscription + positive GMP can attract additional investor attention. However, neither indicator guarantees listing gains or long-term performance.
Should You Invest Based Only on GMP?
No.
GMP should be treated as one data point rather than the sole reason for applying for an IPO.
Before investing, investors should also examine:
- Company revenue growth
- Profitability
- Debt
- Valuation
- IPO price band
- Promoter holding
- Use of IPO proceeds
- Business model
- Industry outlook
- Risks mentioned in the DRHP/RHP
- QIB, NII and retail subscription
- Overall market conditions
An IPO with a high GMP can still list below expectations if market sentiment changes.
Top IPOs to Watch for Listing Gains
Based purely on the GMP figures in the table, the IPOs attracting the most attention include:
- Pranav Constructions
- Kanohar Electricals
- Rentomojo
- Glass Wall Systems
- Karamtara Engineering
These names should be researched further rather than treated as guaranteed profit opportunities.
Frequently Asked Questions
What is GMP in an IPO?
GMP, or Grey Market Premium, is the unofficial premium at which IPO shares are reportedly traded in the grey market before their stock-market listing.
Is IPO GMP reliable?
GMP can provide an indication of market sentiment, but it is unofficial and can change rapidly. It should not be considered a guaranteed listing price.
How do I calculate estimated IPO listing price?
Add the current GMP to the IPO issue price.
Estimated Listing Price = Issue Price + GMP
How do I calculate profit per lot?
Multiply the GMP by the number of shares in one lot.
Estimated Profit = GMP × Lot Size
Can I make guaranteed profit from a high GMP IPO?
No. A high GMP does not guarantee a profitable listing. The actual listing price depends on market demand and conditions on the listing day.
Final Verdict
IPO GMP can be a useful indicator for understanding market sentiment before an IPO listing, particularly for investors interested in short-term listing gains.
However, GMP should never be the only factor used to make an investment decision. Investors should combine GMP with subscription figures, company fundamentals, valuation and the broader market environment.
The GMP figures in this article are indicative and can change before listing. Always verify the latest GMP and IPO subscription data before making an investment decision.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. IPO GMP is unofficial and actual listing prices may differ substantially.