IPO Basics — GMP, Lot Size, Subscription, Listing

Plain-English explainers for the terms that matter when you look at an IPO on AIShare — without the jargon, and without recommending any particular issue.

This page is educational. AIShare is not a SEBI-registered research analyst or investment adviser and does not recommend subscribing to any IPO. Consult a SEBI-registered professional before investing.

What is GMP?

Grey Market Premium (GMP) is the extra price buyers are willing to pay in unofficial, off-exchange trades for an IPO share before it lists on NSE or BSE.

A positive GMP means the market expects a gain on listing day; a negative GMP suggests the opposite. GMP is a sentiment indicator only — it is not regulated, not guaranteed, and often diverges from the actual listing price.

IPO timeline

  1. 1. Open / Close. The 3-day subscription window where bids are collected.
  2. 2. Allotment. Typically 2–3 working days after close. Oversubscribed retail becomes a lottery — allotment is not guaranteed even if you bid.
  3. 3. Listing. Usually within a week of close. Shares start trading on NSE / BSE at a price discovered at open.

Reading subscription multiples

Our IPO page shows three numbers during an open issue:

  • QIB — Qualified Institutional Buyers (mutual funds, insurance, FIIs).
  • NII — Non-Institutional Investors (HNIs, corporates).
  • Retail — individual investors applying for up to ₹2 lakh per PAN.

Each number is a multiple of the shares reserved for that category, not the whole issue. "Retail 2.0×" means retail applied for twice the shares allocated to them.

Glossary

ASBA
Application Supported by Blocked Amount — the regulatory bidding mechanism where your application money is only blocked (not debited) in your bank account until allotment.
Book-building
The price-discovery mechanism for most mainboard IPOs. Investors bid within the price band and the final issue price is fixed based on aggregate demand.
Listing gain
The difference between the listing price on NSE/BSE and the issue price, expressed in % of the issue price.
Subject to / Kostak
Grey-market deal terms. ‘Kostak’ is a fixed ₹ price paid for an application irrespective of allotment; ‘Subject to’ means payment only if the applicant is allotted. Both exist outside regulated exchanges.
Mainboard vs. SME
Mainboard IPOs list on NSE / BSE and have stricter eligibility / lot-size norms. SME IPOs list on NSE Emerge / BSE SME — smaller issue sizes, higher lot-size absolute values, thinner liquidity.

FAQ

What is GMP (Grey Market Premium)?

GMP is the extra price buyers are willing to pay in unofficial, off-exchange trades for an IPO share before it lists on NSE or BSE. A positive GMP means the market expects a gain on listing day; a negative GMP suggests the opposite. GMP is a sentiment indicator only — it is not regulated, not guaranteed, and often diverges from the actual listing price.

What is a price band?

The price band is the range (e.g. ₹100–₹110) within which investors can bid during the IPO. The final issue price is set at or near the upper end based on demand.

What is lot size?

Lot size is the minimum number of shares you must apply for. Retail investors can apply for between 1 and ~14 lots (up to a ₹2 lakh ceiling). Total outlay ≈ lot size × upper price band.

What do QIB, NII, and Retail subscription multiples mean?

These show how many times each investor category subscribed to their reserved portion. QIB = Qualified Institutional Buyers (mutual funds, insurance, FIIs). NII = Non-Institutional Investors (HNIs). Retail = individual investors applying for up to ₹2 lakh. ‘2x retail’ means retail applied for twice the shares reserved for them — allotment becomes a lottery.

Is a high GMP a guarantee of listing gains?

No. GMP reflects unofficial expectations at a point in time. Market conditions can reverse between bidding and listing; many IPOs with strong GMP have listed flat or negative. Past performance does not predict future outcomes.

Does AIShare help me apply for IPOs?

No. AIShare is a data and analysis product. We do not facilitate IPO applications, are not a broker, and are not a SEBI-registered research analyst or investment adviser. Apply through your own broker / ASBA and consult a SEBI-registered professional before investing.

See live data

Live GMP, price bands, lot sizes, and subscription multiples for every NSE / BSE IPO — refreshed every 6 hours.

Open /ipo
For informational purposes only — not investment advice. AIShare is not a SEBI-registered research analyst or investment adviser and does not facilitate IPO applications. Past performance is not indicative of future results.