IPO Glossary
Demystifying stock market jargon. Everything you need to know from ASBA to Grey Market Premium.
Grey Market Premium (GMP)
The extra amount buyers are willing to pay over the IPO issue price before the stock lists on the exchange.
Subject to Sauda
An unofficial grey market agreement where the buyer pays a fixed amount for an entire application, only if the application receives an allotment.
Kostak Rate
The premium paid in the grey market for an IPO application, regardless of whether the applicant actually gets an allotment or not.
ASBA (Application Supported by Blocked Amount)
A SEBI-mandated mechanism that blocks the IPO application money in your bank account rather than debiting it immediately.
Offer for Sale (OFS)
A mechanism where existing promoters or early investors sell their existing shares to the public during an IPO, rather than the company issuing new shares.