InvestorQ : What is the GMP or grey market premium of MapmyIndia ?
Rashi Mehra made post

What is the GMP or grey market premium of MapmyIndia ?

Archita Jajjoo answered.
2 years ago

GMP trading or grey market premium trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. The grey market premium is impacted by two factors viz. the stock market conditions and the subscription response received. However, GMP is not an official price; just an informal approximation in the market.

Having said that, GMP acts as a good lead indicator and is predominantly a good gauge of market sentiments on the IPO. Normally, it has been observed that the GMP does the capture the gist of the IPO story. However, in uncertain markets, the GMP can be quite volatile, as we have seen in specific cases in the past.

If you look at the GMP for MapmyIndia over last 6 days, it began with Rs.600 and has gradually scaled up to Rs.800. That means; likely listing price has gone up from Rs.1,633 to Rs.1,833 per share; based on upper band of Rs.1,033 for the IPO. OF course, the Star Health listing is a risk, but the good news for MapmyIndia is that the current grey market premium indicates a robust 77.44% premium over the IPO price on listing.