Grey Market Premium: The Insider's Guide · Chapter 7 of 10
Estimating the Listing Price
The simple estimate
Estimated listing price = issue price + GMP. A ₹100 issue with a ₹15 GMP implies about ₹115, a 15% premium.
Adjust for costs and risk
Subtract brokerage, taxes and the chance that the GMP falls before listing. A thin expected gain of 2% to 3% is rarely worth the risk or the blocked money.
Net of costs
If one lot is ₹15,000 and the GMP implies ₹900 gain, deduct about ₹100 in charges and about 20% tax on the rest if sold on listing day. The realistic gain is nearer ₹620.
Use the calculators
The Listing Gain Calculator and the Brokerage & Charges Calculator on LiveIPOData help you compute the net result for any lot size and price.
Key takeaways
- Estimate = issue price + GMP.
- Subtract costs and allow for GMP falling.
- Thin expected gains often do not justify the risk.
- Always compute the net result per lot.