The IPO market in India often attracts retail investors who look for short-term listing gains. One of the most discussed indicators before an IPO listing is the Grey Market Premium (GMP). It reflects the unofficial price at which IPO shares are traded before the official listing.
For Jinkushal Industries IPO, the GMP saw a dramatic fall — from nearly 42% to just 17%. Such a decline has raised questions: Is investor enthusiasm drying up? Should new applicants wait until the last subscription day to decide? Let’s break this down in detail.
Key IPO Details
| Particulars | Information |
|---|---|
| IPO Type | Book-Built Issue |
| Price Band | ₹115 – ₹121 per share |
| Lot Size | 120 shares |
| Issue Size | Approx ₹116 crore |
| Market Lot | 1 lot (120 shares) |
| Expected Listing Date | Early October 2025 |
| Business Model | Export trading of customized and used construction equipment |
This table highlights the essentials that investors must know before jumping into the grey market buzz.
Why Did GMP Fall from 42% to 17%?
The sharp drop in GMP does not happen without reason. A few factors may be responsible for this slide:
1. Cooling Investor Demand
In the early subscription days, enthusiasm can drive GMP higher. But as the days progress, actual subscription numbers reveal the real picture. Weak demand usually drags GMP down.
2. Broader Market Sentiment
If the overall stock market turns volatile, investors prefer to stay cautious. Even strong IPOs can face GMP pressure during bearish phases.
3. Valuation Concerns
At higher GMP levels, many traders begin to question whether the stock is overvalued for short-term gains. That selling pressure pulls down the premium.
4. Profit Booking by Early Entrants
Those who locked in positions at a higher GMP often book profits quickly, leading to a natural decline.
“GMP is not a guarantee”, “Listing gains depend on demand”
What Does the Fall in GMP Signal?
A GMP slide should not be seen as purely negative but rather as a market signal:
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It shows investors are less aggressive about paying high premiums.
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Sentiment is becoming cautious, possibly due to concerns about global markets or company fundamentals.
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It opens a window for late entrants to apply at a time when hype is cooling down.
In short, it tells us the IPO is still in play, but investors are approaching with more realism than excitement.
Should You Wait Until the Last Day?
This is the biggest question right now — apply early or wait until the last day?
Pros of Waiting
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You get clarity on subscription numbers from QIBs, NIIs, and retail.
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GMP trends in the last 24 hours often give the best picture of actual listing expectations.
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Helps avoid impulsive decisions based only on initial hype.
Cons of Waiting
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If demand suddenly spikes on the last day, you may miss out on an early advantage.
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A reversal in GMP could leave you with fewer chances of allotment if the IPO becomes oversubscribed.
Balanced Strategy
A balanced approach is to monitor both subscription data and GMP trends daily. If the IPO sees strong institutional interest toward the end, that’s a positive sign regardless of GMP weakness. On the other hand, if both subscription and GMP remain soft, caution is better than blind optimism.
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Final Thoughts
The Jinkushal Industries IPO GMP falling from 42% to 17% is a wake-up call for retail investors. It shows that initial hype can fade quickly and that IPO investing should be based on a combination of fundamentals, subscription demand, and market mood — not GMP alone.
For conservative investors, waiting until the final day might be the smarter move. For risk-takers chasing listing gains, a small exposure can still make sense. But in both cases, remember — GMP is only an indicator, not a guarantee.