After a relatively quiet first half of 2025, activity in India’s primary market has picked up pace, with grey market premiums (GMPs) pointing to strong investor interest. The grey market—where IPO shares are traded before official listing—is witnessing a surge in premiums, signaling the possibility of healthier listing gains across both mainboard and SME counters.
Strong Action in Recent IPOs
Urban Company has emerged as a standout, attracting bids worth over 103 times its issue size. Traders say its shares are commanding a GMP of nearly 55% above the issue price of ₹103. Other recent issues have also seen brisk activity—Srinagar House of Mangalsutra is quoting at a 19% premium to its ₹165 issue price, while Dev Accelerator is trading about 14% above its issue price of ₹61.
Upcoming IPOs Drawing Early Attention
Among upcoming offerings, VMS TMT—which opens for subscription on September 17—is already showing a GMP of nearly 20% over its issue price of ₹99. However, Ivalue Infosolutions and Euro Pratik Sales, set to launch on September 18 and September 16 respectively, are yet to reflect clear trends in the grey market.
Market experts attribute this shift to a buoyant secondary market, heavy oversubscription from retail as well as institutional investors, and strong narratives in sectors like technology, infrastructure, and green energy. Smaller issue sizes are also contributing to a demand-supply mismatch, amplifying the rise in premiums.
Mixed Track Record So Far in 2025
Despite the recent optimism, the broader IPO performance this year has been uneven. Out of 50 companies listed so far in 2025, 28 made a flat debut, 13 delivered moderate gains of 10–30%, while only eight surged more than 30% on listing day.
SME IPOs Outshine
The SME segment continues to attract aggressive bids and high GMPs. Airfloa Rail Technology, scheduled to list on September 18, is quoting at a whopping 119% premium over its issue price of ₹140. LT Elevator, debuting on September 19, is at a 28% premium to ₹78, while TechD Cybersecurity, whose IPO opened on September 15, is trading at an 83% premium above its ₹193 issue price. Other SMEs such as Sampat Aluminium, JD Cables, Karbonsteel Engineering, Taurian MPS, and Jay Ambe Supermarkets are also quoting healthy premiums ranging between 9% and 15%.
Liquidity and Sentiment Driving GMPs
According to analysts, abundant liquidity, stable interest rates, easing inflation, and strong equity market performance are bolstering sentiment for new issues. This has prompted short-term investors to chase IPOs for quick gains, thereby inflating GMPs.
However, experts caution against overreliance on grey market trends. The GMP market is unregulated and often speculative, with premiums susceptible to manipulation. “High GMPs don’t always translate into strong listings. Fundamentals, valuations, and company prospects remain the key parameters investors should evaluate,” said Prashant Tapse of Mehta Equities.
