SME IPO Grey Market Premium

List of recent SME IPOs with GMP and Kostak. Please refer these to decide whether to invest in these SME IPOs or not.

SME IPO Details
SME IPO Name SME IPO Date SME IPO Issue Price SME IPO Lot Size SME IPO Issue Size
(in crores)
Pritika Engineering 25 Nov 2022 - 30 Nov 2022 29 4000 9.42 9-10
Baheti Recycling 28 Nov 2022 - 30 Nov 2022 45 3000 12.42 32-33
Veerkrupa Jewellers 29 Jun 2022 - 05 Jul 2022 27 4000 8.10
Mangalam Worldwide 30 Jun 2022 - 04 Jul 2022 101 1200 65.58
Kesar India 30 Jun 2022 - 04 Jul 2022 170 800 15.82
SKP Bearing Industries 30 Jun 2022 - 05 Jul 2022 70 2000 30.80
Jayant Infratech 30 Jun 2022 - 05 Jul 2022 67 2000 6.19
B Right Realestate 30 Jun 2022 - 05 Jul 2022 153 800 44.36
Modi's Navnirman 23 Jun 2022 - 28 Jun 2022 180 800 22.68
Pearl Green Clubs and Resorts 27 Jun 2022 - 29 Jun 2022 186 600 11.72

SME IPO grey market - What you need to know

SME ipo means small and medium enterprises initial public offering. In 2017 lots of SME ipos came up and gave superb returns to the investors. Its time for SME IPOs to give best returns in 2018. The SME IPOs comes up in BSE and NSE individually. One SME company can list in either in BSE or in NSE platform. The small and medium scale companies who need funds to expand their business they can come up with offer for sale via BSE SME or NSE SME. There are few small names which can be a bigger ones and SME provides the platform for these companies.

SME IPOs have garnered strong interest from investors in recent years. This is visible in the huge subscription levels as well as the quality of participation. Now, even institutional investors are becoming interested in SME offers.

Check our SME IPOs section to get up to date information about the past, current and future offers. In addition, you can make use of basic valuation metrics such as Earnings Per Share (EPS), Price by Earnings (P/E) ratio, Return on Net Worth (RONW), and Net Asset Value (NAV). The platform also offers a lively discussion forum where readers can get the latest details of Grey Market Premium (GMP) of SME IPOs. Although grey market is an informal setup and not recognized by stock exchanges, grey market premium of several IPOs has correctly predicted eventual listing prices.

The transaction in this market is normally between parties who know each other very well. They trade in scrips unofficially and settle accounts outside of the stock exchanges once the allotments by the companies are decided.

Normally, third parties are not part of such trading.

However, a third party is entertained only if he is introduced through a person known in the circuit.

Two parties agree to settle the trade at a price on the day of listing through the stock market mechanism and the difference is settled through cash, explained broking industry sources.

A robust secondary market has aided this trend and players in this segment are doing brisk business across centres. Ahmedabad is the most active grey market centre while Kolkata, Delhi and Mumbai are also some of the centres where grey market for IPOs is alive and kicking.

A dealer with a brokerage house said, The future of the grey market for the IPOs is linked with the robustness of the secondary market. Till the time the cash market is in the pink of health, this grey market will flourish and the moment a downturn is signalled in the cash market, the grey market downturn will be faster than that of the cash market. In such an event, the premium market will disappear altogether.

SME IPO grey market - Glossary

  1. 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.

  2. SME IPO

    An SME exchange is a dedicated exchange or a trading platform for Small and Medium Enterprises. In India, an SME exchange functions within a recognized stock exchange or the main exchange such as the BSE Limited and the National Stock Exchange of India.May 19, 2018

  3. SME IPO 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.

  4. SME IPO Grey Market 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.

  5. 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.

  6. Basis of IPO allotment

    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.