IPO Grey Market
- Paytm’s stock has risen from ₹11,500 to ₹21,000 in four days in the grey market.
- This is in response to Paytm’s announcement that it will bring an initial public offer (IPO) worth USD 3 billion later this year.
- The process by which companies sell a part of their stock on the stock market in order to raise funds to fuel their growth is called an initial public offering, or IPO.
IPO grey market is an unofficial market where IPO shares or applications are bought and sold before they become available for trading on the stock market.
These transactions are undertaken in cash on a one-on-one basis.
It is also termed as a parallel market or an over-the-counter market.
It’s an excellent opportunity for investors to purchase a company’s shares even before they are listed, especially if they feel that the company’s stock will increase in value.
If an investor has missed the deadline for the IPO application or wishes to buy more shares then they can approach the IPO grey market.