What does it mean that SBI Cards IPO is quoting at premium of 50% in the grey market? What does that mean for the IPO pricing?

The IPO grey market is the unofficial market where IPOs are traded before their listing and it helps to get an indicative value for the IPO listing. It does not impact the price of the IPO, as that has already been set at the range of Rs.750-755 for the IPO.

The grey market premium refers to the possible listing price. However, you cannot take that as any final view on the price because this is an unregulated unofficial market where trades happen based on Koshtaks. Most traders and analysts use the grey market premium as indicative of the likely price of listing.

Currently, the grey market premium is quoting at around Rs.360 per share, which could mean a listing price of Rs.1100 and above. But these keep changing because, the premium has gone up by Rs.100 in just the last one week.