Join us on Whatsapp: +91 7977614821 OR Click here to directly join now!

Thursday, March 30, 2017


IPO Grey Market is an unofficial market where IPO applications or *shares are bought and sold before they become officially available for trading on the stock exchange.

All transactions are done in cash on personal basis.

SEBI, Stock Exchange or Brokers are not involve or back these transaction.

It includes:
- Trading (selling or buying) IPO Applications at certain rate (premium) and
- Trading (selling or buying) allocated IPO shares before they list on stock exchanges.

Grey market trading is usually done among the small set of people who trust each other as there is no official platform or rules define for these trading

Terms used:

Grey market premium: Premium amount at which IPO shares are traded on stock market before they get listed on stock exchange. It can be positive or negative based on demand and supply of stock.

Kostak: Premium amount at which IPO applications are being traded in IPO Grey Market.
‘Kostak' is especially for people who do not want to take risk with IPO allotment or listing gains.

Who decides Grey Market Price?
Just like stock market or commodity market trading, IPO Grey Market

Premiums are decided on basis of demand and supply

If there are more buyers than sellers, the price goes up and vice versa.

As there are no regulatory bodies involved in Grey Market Trading and therefore there are no limitations on price momentum. Grey market premium may rise or fall suddenly


Post a Comment

Indian IPO Blog Feed Subscribers

Enter your email address:

Delivered by FeedBurner

- Disclaimer / Terms of Use
- Privacy Policy

Subscribe via email

Enter your email address:

Delivered by FeedBurner

By visiting or accessing this Blog and any/all of its subdomains, you solemnly declare that you have read, understood and agree to - Disclaimer / Terms of Service
View our - Privacy Policy

Trending IPO News

Blog Archive

Feed Subscribers