GMP vs subscription: which IPO signal means what?

Updated 19 October 2026

Two numbers dominate IPO chatter: grey market premium (GMP) and subscription. They are often quoted together, but they come from very different places.

Subscription is official

Subscription is published by the exchanges from actual bids. It is reliable as a record of demand, category by category, and is final once the issue closes.

GMP is unofficial

GMP is a figure passed around by informal dealers. Nobody audits it, different sources quote different numbers, and it can be moved by a small number of people.

How they relate

• Heavy subscription and a high GMP often appear together in "hot" IPOs — but one does not cause the other.
• A falling GMP during the issue period sometimes reflects fading sentiment; sometimes it is noise.
• Neither number tells you about the business, valuation or long-term prospects.

A sensible way to use them

Treat subscription as a fact about demand and allotment odds, and GMP as rumour. Base decisions on the offer document, the business and your own goals — or on advice from a SEBI-registered adviser.