The and investors looking at the issue may be wondering how much they could potentially earn if the stock lists at a price suggested by the current grey market premium (GMP).
The latest GMP for the NSE stood at Rs 190 as of September 15, according to the data shared. With the IPO’s upper price band fixed at Rs 1,785 per share, this translates into an estimated listing price of Rs 1,975.
That would mean a potential gain of Rs 190 per share, or around 10.64%, if the GMP translates into the actual listing price.
GMP is an unofficial indicator and does not guarantee the NSE IPO’s listing price or the profit an investor will eventually make. The actual listing price can be significantly different from the grey market estimate.
The NSE IPO has a lot size of eight shares. At the upper price band of Rs 1,785, one lot would cost Rs 14,280.
If the stock lists at the GMP-implied price of Rs 1,975, the calculation would be:
IPO price: Rs 1,785Current GMP: Rs 190Estimated listing price: Rs 1,975Potential gain per share: Rs 190Potential gain on one lot: Rs 1,520
So, an investor allotted one lot could potentially make around Rs 1,520, based purely on the current GMP.
WHAT IF YOU GET 5 LOTS?
Five lots would mean 40 NSE shares.
At the upper price band, the investment would be:
40 shares Rs 1,785 = Rs 71,400
If the shares list at Rs 1,975, the value would be:
40 shares Rs 1,975 = Rs 79,000
The potential gain would therefore be Rs 7,600.
WHAT IF YOU GET 10 LOTS?
Ten lots would mean 80 shares.
At the upper price band, the investment would be:
80 shares Rs 1,785 = Rs 1,42,800
At the GMP-implied listing price of Rs 1,975, the value would be:
80 shares Rs 1,975 = Rs 1,58,000
The potential gain would therefore be Rs 15,200.
The grey market premium has also been moving around in the days leading up to the IPO.
The GMP stood at Rs 192 on September 10 before rising to Rs 218 on September 11. It then slipped to Rs 208 on September 12, moved up marginally to Rs 210 on September 13, eased to Rs 208 on September 14 and fell further to Rs 190 on September 15.
is Rs 28 lower than the Rs 218 level seen on September 11, a decline of around 13%.
At Rs 190, the implied listing gain has also come down to 10.64%, compared with 12.21% when the GMP was Rs 218.
The trend suggests that while the grey market continues to indicate a premium over the IPO price, the premium has weakened from its recent peak.
But investors should be careful about treating the Rs 190 GMP as an expected return.
Grey market premiums are not an official price discovery mechanism. They can change quickly depending on market sentiment, demand for the IPO and broader market conditions. The actual NSE share price on listing day could therefore be higher or lower than the GMP-implied Rs 1,975.
For example, if the stock lists below Rs 1,785, an investor could actually face a loss despite the current positive GMP. Similarly, a stronger listing could result in a gain larger than the GMP-based calculation.
Therefore, the Rs 1,520 gain on one lot, Rs 7,600 on five lots and Rs 15,200 on 10 lots should be viewed only as a GMP-based estimate, not as assured profit.
The NSE IPO is scheduled to open on September 17 and close on September 21. The price band is Rs 1,700 to Rs 1,785 per share, with a lot size of eight shares.
For a retail investor applying at the upper price band, the minimum application amount is Rs 14,280.
The IPO is an offer for sale, meaning the proceeds will go to existing shareholders selling their shares rather than being raised as fresh capital by NSE.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)