The Economic Times

IPO reality check! Is GMP a useful signal or just market noise? Heres what experts think

Investors frequently use grey market premium (GMP) to gauge interest in initial public offerings (IPOs) and their potential returns. However, the recent performances of companies like Hero Motors and SBI Funds Management highlight that GMP isn't always a dependable indicator. Experts warn that while GMP reflects market sentiment, it often lacks clarity and can be driven by speculation.