A Study On Finding The Relationship Between Grey Market Premium (GMP) And Listing Day Performance Of An IPO With Reference To Integrated Enterprises India Pvt Ltd.

Author(s)	Mr. Jai Vigneshwar, Ms. Jay Shree
Country	India
Abstract	This project examines the relationship between Grey Market Premium (GMP) and Initial Public Offerings (IPOs) listing day performance in the Indian stock market. GMP, although unofficial, is a well-known predictor of IPO listing returns. The research, using secondary data from 270 IPOs, assesses whether GMP can accurately predict listing results. Since the data were not normally distributed, non-parametric measures such as Spearman's Rank Correlation, Chi-Square Test, Mann-Whitney U Test, Decision Tree (CRT), and Somers' D were applied. The findings indicated high positive correlation, where Spearman's coefficient was 0.886. An 83.7% accuracy level in predicting the decision tree model was revealed. Findings support GMP as a viable pre-listing predictor. It has strategic relevance to retail investors with the goal of earning short-term returns.
Keywords	Grey Market Premium (GMP), Initial Public Offerings (IPOs), listing day performance, Indian stock market, secondary data, non-parametric measures, Spearman's Rank Correlation, Chi-Square Test, Decision Tree (CRT), correlation, prediction accuracy, retail investors, short-term returns.
Field	Sociology > Banking / Finance
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-05-16
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.44762
Short DOI	https://doi.org/g9kfs9

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