Knowledge Center

What is GMP (Grey Market Premium)? To understand GMP in a better way, let's first understand in brief what is Grey Market? What is Grey Market? Grey Market is the place where any company's any product is unofficially bought and sold. Grey Market is illegal. What is Grey Market in the context of IPO (Initial Public Offerings)? In the context of IPO, Grey Market is the place where the company's shares are bought and sold anytime before they list on stock exchanges for official trading. Like any other Grey Market, IPO Grey market is also unofficial and illegal . In spite of it being unofficial and illegal, a numerous deals happen on Grey Market across the country. Now, what is GMP (Grey Market Premium)? Whenever, any company announces its IPO, its GMP starts floating across the country in the Grey Market. GMP is the difference between the price set by the company per share in the IPO and the price buyer is willing to pay per share in the Grey Market. For ...

What is ASBA? ASBA stands for Application Supported by Blocked Amount. It is a process developed by the India's stock market regular SEBI for applying IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted to them. Earlier when an applicant wanted to apply an IPO, he was supposed to give a cheque of subscription amount. His amount used to be debited from his account. Once allotment process is done and an investor is allotted shares, his allotment amount used to be kept by the company and balanced refunded. In case of no allotment, full application amount used to be credited in applicant's account. In this arrangement, an applicant's money used to be debited for a few days. He used to loss the interest in such amount, if shares were not allotted to him. In 2008, market regulator SEBI came with ASBA  arrangement where an applicant's money would never be debited unless he is allotted shares. His amount shall be only  blocked b...

Hello fellow investor...!! Bharat Road Network Limited is the 18th mainstream IPO of the calendar year 2017. Somewhere I read that IPO is the arrangement where companies garner money when money is available rather than actually needed. Every Tom, Dick and Harry type company is coming with its IPO because a lot of money is available in the market and as it has witnessed in recent time that every IPO gets oversubscribed. Even, GTPL, Tejas Network and S Chand type IPOs are no exception.   Before moving ahead, I would like to say that I've gone through 737 pager Red Herring Prospectus of the company. There wasn't a single positive thing in the prospectus which can excite investors to apply the IPO. If you love your hard earned money, I would strongly recommended to AVOID this IPO.   I've compiled some information from the RHP.   Issue details   BRNL will garner money through fresh issue of 2,93,00,000 equity shares of face value R...