Grey market premium

An unofficial, unregulated price at which applications or shares in a forthcoming Indian public offer change hands before listing.

On a ₹950 issue, a ₹120 premium implies a listing near ₹1,070.

This market has no legal standing, no settlement guarantee and no published volume, so a small number of trades can move the quoted premium. It's a sentiment indicator with a wide error, frequently reported as though it were a forecast.

It tells you nothing about whether the business is worth owning in three years, and for a long-term holder that's the only question that matters.

Use it to understand the first day. Nothing more.