- How do I use the information on this site?
We are here to help you apply for the right IPO so that you get maximum benefit from your investment. The hard earned money should be invested in the right companies to get the maximum return. To be able to use the data on this site properly, you will need to understand few terms related to IPO.
- What is IPO?
IPO is an initial public offering (IPO) is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by large privately owned companies looking to become publicly traded.
- What is Grey Market?
A grey market (sometimes called a parallel market, but this can also mean other things; not to be confused with a blackmarket or a grey economy) is the trade of a commodity through distribution channels that are legal but unintended by the original manufacturer.
- What is GMP?
GMP is Grey market premium (or grey market price) is a premium amount in rupees at which IPO shares are being traded in Grey Market before they get listed in stock exchange. Grey market premium can be in positive or in negative based on demand and supply of the stock.
Grey Market Premiums are also attached with words 'Buyer' or 'Seller'. They tell the price either at which buyers are willing to buy shares or the price at which sellers are willing to sell their IPO shares.
- What is Kostak?
Kostak (or price of application) is the premium amount in rupees at which IPO applications are being traded in IPO Grey Market. Usually 'Kostak' value is defined as the premium of a maximum lot retail application in an IPO.
Kostak price is important mostly before issue is close for subscription and final bidding status is available to the IPO investors. Very few IPOs applications are traded after final bidding status is available to the investors.
'Kostak' is especially for people who do not want to take risk with IPO allotment or listing gains.
- Where do we come into picture?
We analyze lot of websites over internet and give you the recommendation based on GMP (Grey Market Premium), Kostak and lot of other factors like company fundamentals etc. Though Grey Market Premium itself is not the only factor to be considered while deciding the purchase of IPO but it definitely helps you maximize your listing gain. If you would like to contact us please leave us a comment on our contact us section and we will get back to you.
- How is the IPO allotment decided?
In August 2012 SEBI has made regressive changes in the allotment procedures. As per these changes, every retail applicant will get a certain number of shares, though it is subject to the availability. It clearly means that retail investors are now assured to get minimum number of shares at a decided ratio irrespective of the lots they have applied, subject to availability. However remaining shares will be allotted proportionately. Current procedure is quite encouraging for retail investors as now they have assurance of getting shares in IPO. As per this practice every investor has equal probability of getting shares in an IPO irrespective of the lots he applied in an oversubscribed issue. Even if he applied for minimum permissible lot he may get minimum number of stocks allotted to shareholders. In fact retail investors who apply for smaller lots may have a better chance of getting more number of shares than the investors who applies for maximum amount permissible.