Frequently Asked Questions (FAQs)
Clear, plain-English answers to top Indian IPO questions.
What is Grey Market Premium (GMP)?
Grey Market Premium (GMP) is an informal, unofficial price premium at which IPO shares are traded in the over-the-counter market prior to listing on the stock exchange. For example, if an IPO issue price is ₹100 and its GMP is ₹25, the estimated listing price is ₹125 (+25%). Note that GMP is strictly unofficial and subject to sudden market shifts.
How is Estimated Profit per Lot calculated?
Estimated Profit per Lot is calculated by multiplying the live Grey Market Premium (₹) by the Lot Size (number of shares in 1 lot). Formula: Est. Profit = GMP × Lot Size. For example: ₹25 GMP × 38 Shares = ₹950 estimated profit per lot.
What is the difference between Mainboard IPOs and SME IPOs?
Mainboard IPOs are large established companies listing on the BSE/NSE main platforms with high minimum net worth requirements and standard lot sizes (usually ₹14,000–₹15,000 per lot). SME IPOs are Small & Medium Enterprises listing on BSE SME or NSE Emerge platforms with minimum application sizes around ₹1,000,000 to ₹1,200,000.
How do I check my IPO Allotment Status?
You can check your allotment status by visiting the official Registrar website (Link Intime, KFintech, Bigshare) or BSE/NSE allotment portals using your PAN card number, Application number, or DP/Client ID.
What does Subscription Status multiplier (e.g. 3.5x) mean?
Subscription status indicates investor demand. A multiplier of 3.5x means the IPO received bids for 3.5 times the total number of shares offered by the company.