Latest IPO Grey Market Premium & Kostak Rates
As on : 05-Oct-18 5:00 pm
What is Grey Market?
They grey market, also called to parallel market, is a market where a product is bought and sold outside of the manufacture’s authorized trading channels. The grey market is where the unofficial trading of a company’s shares, mostly before they are issued in an initial public offering (IPO) or listing happens.
What is IPO Grey Market?
IPO grey market is an unofficial market where shares and IPO application are bought and sold before listing or out side of exchange. In IPO grey market not have any rules or regulations around it. All transactions are done in cash on personal basic. In this market SEBI, Stock Exchanges or brokers are not involve.
What is Grey Market Premium (Grey Market Price or Rate)?
Grey Market Premium is a premium amount in rupees(in India) at which IPO trading in grey market before listing on stock exchange. Grey market premium can be in positive and negative depend on demand and supply of the stock.
Who decides the Grey Market Premium?
Just like the stock prices are decided by the demand and supply numbers, Grey market price for an IPO is also decided by using the same standards. If the subscription for a particular IPO is more than the stated shares, the grey market price will be higher and lower if its a reverse case. So depending upon the demand for the IPO, grey market prices are decided.
How can I buy and sell in Grey market?
As there is no regulatory or rules authority to control the grey market, you have to choose your own buyers/sellers on a personal basis.
How Grey Market works?
In grey market, there are two ways to earn money. first way is you can buy/sell the IPO shares in grey market before listing on the stock exchange. second way is you can sell your IPO application at a certain price to other.
What is Kostak Rate?
Kostak Rates means someone gets by selling his/her IPO application (in off market transaction) to someone else even before allotment or listing.
What is Subject to Sauda (S2)?
An investors can sell an IPO application to a Bayer at an agreed price before listing on stock market. In subject to Sauda, buyer and seller agree that deal is only valid if the seller will get the allotment. If the seller doesn’t get any shares or allotment in IPO process then deal gets canceled.
- www.Myipo.in will not be responsible for any loss.
- We are not buying and selling IPO forms in IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price. It may change anytime before listing
- Check the fundamentals of the company before applying.
- Above grey market premium, Kostak and S2 details just given basic idea about IPO.
- Kostak Rates means someone gets by selling his/her IPO application (in off market transaction) to someone else even before allotment or listing.