IPO Grey Market Premiums Signal Strong Listings Next Week

An IPO is when a company sells its shares to the public for the first time.

Before those shares are officially listed, some people trade them in a special grey market to guess the price.

The grey market premium, or GMP, tells us how much extra people are willing to pay.

This week, five companies are in the news for their IPOs.

Dhoot Transmission and Molbio Diagnostics will be listed on Monday.

Behari Lal Engineering and Shiprocket will have their allotments on that same day.

Milky Mist Dairy Food's allotment was already finished on Friday.

Many investors wanted to buy these shares, and some offers were oversubscribed by more than 100 times.

A high GMP usually means people expect the share price to go up when it starts trading.

This is just a guess though, and prices can still change.