Support & Frequently
Asked Questions

Grey Market Premium (GMP) is an unofficial market price for IPO shares traded in the "grey market" — an informal, unregulated market that operates before the official listing on NSE/BSE. GMP tells you at what premium (or discount) buyers are willing to purchase IPO shares before they list. For example, if an IPO's issue price is ₹100 and GMP is ₹30, the expected listing price is approximately ₹130. GMP is purely indicative and not a guarantee of listing price.

GMP is not officially calculated by any authority. It emerges organically from supply and demand in the grey market — a network of brokers and traders who deal in IPO shares unofficially. Factors affecting GMP include subscription level (oversubscription drives GMP up), market sentiment, sector performance, company fundamentals, and general market conditions. Sites like MainboardGMP track and aggregate GMP data from multiple grey market sources to give you an indicative range.

GMP is directionally accurate in most cases — a high positive GMP usually means a strong listing. Based on historical data, GMP correctly predicts whether an IPO will list at a gain or loss roughly 70–80% of the time. However, GMP can significantly overestimate or underestimate actual listing gains. Market conditions on listing day, FII/DII activity, and overall index movement can all cause the actual listing to deviate from GMP expectations. Always treat GMP as one data point, not the only factor in your investment decision.

A negative GMP means the IPO shares are trading at a discount in the grey market — below the issue price. This is a bearish signal suggesting the market expects the IPO to list below its issue price. For example, if issue price is ₹100 and GMP is -₹15, the expected listing is around ₹85. Negative GMP is often seen in weak market conditions, poor company fundamentals, or highly valued IPOs. If you hold such an IPO, you may want to exit on listing day rather than holding.

Kostak is the price at which someone buys an entire IPO application (including the risk of non-allotment) in the grey market. For example, if Kostak is ₹800 for an IPO, a buyer will pay you ₹800 for your entire application — regardless of whether you get allotted or not. This eliminates your allotment risk. Kostak deals are made before allotment. They are informal, unregulated, and legally unenforceable — participate at your own risk.

"Subject to Sauda" (STS) is a grey market deal where the price is paid only if the applicant gets allotment. Unlike Kostak (paid regardless of allotment), STS is conditional — if you don't get allotted, no money changes hands. STS rates are typically lower than Kostak rates. Both are informal grey market transactions with no legal standing. MainboardGMP tracks STS data for reference only.

GMP data on MainboardGMP is updated approximately every 30 minutes during market hours (9 AM – 8 PM IST, Monday to Saturday). After market hours, data reflects the last available grey market quotes. Weekends and market holidays may see less frequent updates. You can see the last update time on each IPO detail page. Our goal is to always show you the most current grey market sentiment.

Use GMP as one of many factors: (1) High GMP + high subscription = strong listing candidate. (2) High GMP but weak market conditions = be cautious, GMP may not hold. (3) Always check subscription levels — QIB oversubscription is the strongest positive signal. (4) Compare GMP trends over multiple days — a rising GMP closer to listing is more reliable than an early spike. (5) Never rely on GMP alone; study the company's financials, valuation (P/E ratio), competitive position, and use-of-funds from the DRHP.

"Ongoing IPOs" are currently open for subscription — you can apply right now through your broker/bank UPI. "Upcoming IPOs" have received SEBI approval and have an announced subscription date, but haven't opened yet. "Closed IPOs" are past their subscription period and are either awaiting allotment, allotment announced, or already listed. MainboardGMP shows GMP data for all three categories.

No, MainboardGMP is a data and information platform — we do not facilitate actual IPO applications. To apply for an IPO, you need a Demat account with a SEBI-registered broker such as Zerodha, Groww, Upstox, Angel One, or through your bank's net banking (ASBA). MainboardGMP helps you decide which IPOs to apply for by providing live GMP, subscription data, company details, and market analysis.

You can save IPOs to your personal Watchlist by creating a free account on MainboardGMP. Once logged in, click the "♡ Watchlist" button on any IPO card or detail page. You can view and manage your saved IPOs from your Dashboard. Your watchlist is synced across devices when you're logged in.

IPO allotment status can be checked through: (1) The registrar's website (Link Intime, KFintech, etc.) — go to the IPO detail page on MainboardGMP for a direct link to the registrar. (2) BSE's IPO portal at bseindia.com. (3) NSE's allotment portal. (4) Your broker's app — most show allotment status automatically. You'll need your PAN number and application number or DP ID. Allotment is typically announced 6 days before the listing date.

If you don't get allotment (or partial allotment), your blocked funds are released back to your bank account. Under the ASBA system, your money is only debited when you receive allotment — it was only "blocked" (not debited) during the application period. Refunds for UPI applications are processed within T+3 days after allotment. For ASBA bank applications, funds are unblocked within 1 business day of allotment announcement.

Top strategies to improve allotment odds: (1) Apply at cut-off price — ensures your bid is valid regardless of final price. (2) Apply through multiple family members' demat accounts — each has a separate chance. (3) Use multiple UPI IDs/bank accounts to avoid technical rejections. (4) Apply early on Day 1 or Day 2 — avoids last-minute UPI congestion. (5) Ensure sufficient funds in your account before the UPI mandate request arrives. (6) For highly oversubscribed IPOs, even these tips may not help — it becomes a lottery.

UPI mandate rejection can happen due to: insufficient funds, UPI app timeout, bank server issues, or exceeding the ₹5 lakh UPI limit for IPOs. Steps to fix: (1) Check your UPI app immediately — pending mandates expire quickly. (2) Ensure your bank balance covers the blocked amount. (3) If rejected, you can re-apply before the IPO closes — use ASBA (bank net banking) for more reliability. (4) Try a different UPI app if one is failing. Contact your bank if the issue persists.

ASBA (Application Supported by Blocked Amount) is the traditional IPO application method through your bank's net banking. UPI is the newer, faster digital alternative. Key differences: UPI works through broker apps and is instant; ASBA through bank branches/net banking is slightly slower but more reliable for large amounts. Both block (not debit) funds until allotment. UPI has a ₹5 lakh cap per application; ASBA has no such limit. SEBI mandates that all retail IPO applications use either ASBA or UPI.

SEBI set a ₹5 lakh UPI limit for retail investors to ensure smooth processing and reduce system load. For retail investors, one lot typically costs much less than ₹5 lakh, so this limit rarely matters. If you want to apply for more than ₹5 lakh worth (High Net Worth Individual / NII category), you must use ASBA through your bank's net banking. The NII category itself requires a minimum application of ₹2 lakh.

No. MainboardGMP is NOT a SEBI-registered investment advisor. We are a data aggregation and information platform. Nothing on MainboardGMP — including GMP data, analysis, blog articles, or any other content — constitutes investment advice. All IPO investment decisions should be made by you based on your own research, financial goals, and risk tolerance. Past GMP performance does not guarantee future listing gains.

Grey market trading in IPO shares (Kostak, STS deals) operates in a legal grey zone. SEBI has not explicitly declared it illegal, but these transactions are unregulated and unenforceable in court. SEBI has, however, warned investors against such dealings multiple times. MainboardGMP only tracks and displays GMP data (which is legal and informational) — we do not facilitate, encourage, or broker any grey market trades. Participate in grey market deals at your own risk.

GMP can change rapidly because it reflects real-time market sentiment in an illiquid, informal market. Triggers for dramatic GMP swings include: (1) Announcement of subscription numbers — high QIB or NII subscription can spike GMP sharply. (2) Market index movements — Sensex/Nifty crash or rally directly impacts grey market confidence. (3) News about the company. (4) Expiry of IPO application period — late bidders driving up subscription numbers. (5) Large institutional buy/sell signals in the grey market itself. The closer to listing day, the more volatile GMP tends to be.

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