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IPO Grey Market

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.