The Grey Market Premium (GMP) for the Fractal Industries IPO shows the current unofficial share price for its stock, which is being traded in the grey market before its official market launch. The GMP functions as a preliminary predictor, which shows both investor attitudes and upcoming market performance, although it lacks official status as a regulated measurement.
A strong GMP indicates that investors highly demand the stock, which suggests that they will likely profit from their investment, while a weak or negative premium indicates that investors are approaching the market with caution. However, investors should avoid solely depending on GMP as their decision-making tool. Grey market activity operates as a speculative process that changes quickly because of subscription levels and market conditions and the general public's opinion of SME IPOs.