GMP Decoded: What the IPO Grey Market Premium Really Tells You

GMP is an unofficial, unregulated price quoted in cash deals — not a stock exchange figure or a SEBI-approved indicator.

It estimates expected listing gains, but it's set by a tiny circle of dealers and can be moved by rumour or hype.

Kostak is the fixed price for your application; subject-to-sauda pays only if you get an allotment.

A high GMP has zero bearing on a company's long-term fundamentals — strong businesses have listed flat.

Use GMP as a rough sentiment gauge at best; never apply for an IPO purely because the premium looks juicy.