In this article, we analyze the top 10 IPOs with the highest Grey Market Premium (GMP) in the Indian stock market over the last five years. We compare projected GMP-based expectations with actual listing performance, identify where GMP worked, where it failed, and what investors can realistically learn from past trends.
If you are new to investing or have no clue about the grey market and grey market premium, read our article on what is grey market premium. And if you want to check the latest gmp on upcoming, live IPOs you can check our GMP hub page which is updated regularly.
The Ranking – IPO GMP Data
1. The LG Electronics India IPO had a price band upper of ₹1,140. The price brand was ₹1,080 - ₹1,140. The GMP(Grey Market Premium) was listed between ₹395 to 400. This implied opening price sat at ₹1,710. The actual opening price on October 14 was at ₹1,140 and closing at ₹1,694.00
2. A notable GMP is the MapmyIndia IPO, which rose to ₹1,050 per share back in December 2021. This was a whopping 102% premium. The company's price range was ₹1,000–₹1,033. It was eventually listed on December 21 at ₹1,581 on the BSE, a 53% premium, before closing lower.
3. Another IPO with a highly speculated GMP was LatentView Analytics in November 2021. Its GMP rose to ₹350–₹385 per share, which is 178–195% against an initial issue price of ₹197. It opened on November 23, 2021, at ₹512.20 on the NSE.
4. Clean Science and Technology is another high IPO GMP. It saw its GMP peak at ₹615 against an issue price range of ₹880–₹900. This was a premium of around 68%. The stock was listed on July 19, 2021, on BSE: ₹1,784.40 per share.
5. When it comes to high IPO GMP, Paras Defence and Space Technologies ranks high. It had a reported premium of ₹250–₹270 over its upper band price of ₹175. The stock opened on October 1, 2021, at the NSE at ₹469.
6. Nazara Technologies in 2021 also featured a high GMP before its opening day in 2021. The gaming company's IPO had GMP reaching ₹850 over its issue price of ₹1,100. It was listed on March 30, 2021, at ₹1,990 on March 30, 2021, at an 81% premium.
7. Are you familiar with Nykaa (FSN E-Commerce)? Anyway, the company saw its Grey Market Premium soar to ₹750 towards the end of its subscription period against an issue price range of ₹1,085–₹1,125. The company performed very well, opening at ₹2,018 per share on the NSE, an 80% premium.
8. Another interesting GMP IPO is that of GR Infraprojects IPO. They showed a strong GMP of ₹380–₹390 against an issue price of ₹828–₹837 in July 2021, pointing towards a healthy listing gain. The stock eventually went on to list at ₹1,715.85, a 105% premium over its issue price, on July 19, 2021.
9. PB Fintech is worthy of mention. This tech company's IPO in November 2021 saw its GMP peak at ₹140 over its price band of ₹940–₹980. Although not as high as some others in terms of percentage, the premium indicated positive market sentiment. The stock listed at ₹1,150 per share, a gain of 17.3%.
10. Finally, let us talk about Mankind Pharma’s IPO that got a lot of attention in 2023, with its GMP reported around ₹100 over the issue price of ₹1,080. This was, fortunately, a healthy listing which proved accurate when the stock debuted at a solid premium.
Which IPOs Delivered After High GMP?
Below is a list of the IPOs that delivered the most after a high GMP.
- Clean Science and Technology
- GMP: ₹615 at 68% premium projected
- Actual Listing Premium: 98% - GR Infraprojects Ltd.
- GMP: ₹380–₹390 at 46% premium projected
- Actual Listing Premium: 105% - Paras Defence and Space Technologies
- GMP: ₹250–₹270 (≈154% premium projected)
- Actual Listing Premium: 168%
Surprises – High GMP but Poor / Disappointing Listings
MapmyIndia
- GMP projected: 102% gain;
- Listed at 53%
2. LatentView Analytics
- GMP projected: 195%;
- Listing Premium: 160%
The chart highlights the gap between grey market expectations and actual listing performance for select IPOs.
What Investors Should Learn from Past GMP Trends?
As stated in the introduction of this article, the grey market is speculative and should not be trusted much also it is neither regulated nor managed by government institutions. However, based on the report above, here are a few well-informed, opinionated lessons for investors concerning GMP trends. It includes the very bad, a few good, and some ugly.
- GMP is a sentiment-driven and not data-driven
The grey market is unofficial and is not within the jurisdiction of the SEBI. This grey market is the only aspect of the stock market where sentiments are allowed to judge prices. Consider the grey market, as the period between the listing price of an IPO and the opening price, where “well-informed” gamblers try to speculate or guess just how much more an IPO would set its opening listing price above the issue price. It is rarely data or research-driven approach. - Low GMPs do the least damage
For a long-term investment strategy, purchasing the shares of a company with a low GMP might seem a better strategy. And the reason isn’t quite complicated. The lower the GMP, the potentially lower the risk of the shares dipping badly after a while. The rationale is such IPOs are not driven by hype, but instead by the slow and steady growth in the demand for the company's shares over time. An exception, of course, would be a company with so many obvious red flags, it couldn't even move the needle of a GMP. Other than that, it is a safer strategy than investing in the fake hype that dictates some GMPs. - Invest what you are willing to lose in high-hype IPOs
The human condition to gamble, FOMO, and the thrill of quick profit can sometimes be strong, and sometimes very hard to defeat in the face of an IPO with a really amazing GMP. So, what should you do if you find yourself in this situation? Invest that which you are willing to lose. Diversify your investment, putting the bulk into more stable, reasonable portfolios. - Cross-check with RHP / DRHP
This might seem like a rookie perspective, but it isn't. You do not want to be one of those investors whose only data is the GMP and who have absolutely no idea about the company they are rooting for. The least any investor can do is cross-check the company's RHP and DRHP. Think about it, why would a GMP be 80 percent of the listing price? Why? What is so special about the company? These are among the questions proper research can provide answers to.
Conclusion
The data-driven report in this article goes on to prove a long-standing bias about GMP. They are best for signals, rather than a tool for investment strategy. A high GMP does not guarantee a high opening listing price nor an assurance that he stock of a company would do well or not.
Important Resources:
1. Check the details of all the upcoming, live and closed IPOs at our IPO calendar.
2. Learn about mutual funds, how they work and other useful information at our mutual fund learning hub which hosts 100s of questions to easily learn about them.
FAQ: Highest Grey Market Premium (GMP) in Last 5 Years
1. Does a high Grey Market Premium (GMP) guarantee strong listing gains?
Grey Market Premium (GMP) is unofficial and unregulated, and is mainly driven by market sentiment. A high GMP does not always guarantee strong listing gains. For example, the MapmyIndia IPO had a projected GMP of around 102%, but the stock eventually listed at about a 53% premium over its issue price, falling short of market expectations.
2. Why do some IPOs with high GMP fail to meet expectations on listing day?
Grey Market Premium (GMP) does not guarantee anything. It is unofficial and comes from the grey market, which is unregulated and driven largely by sentiment. If grey market sentiment is high for a particular issue, it may reflect in a higher GMP.
However, the listing price is determined by actual market demand on listing day and has no direct linkage with GMP. For example, LatentView Analytics had a projected GMP of around 195% of its issue price, but it eventually listed at about a 160% premium, lower than grey market expectations.
