Everything you need to know about Initial Public Offerings in the Indian Stock Market. From basic definitions to complex allotment processes, we've got you covered.
An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time to raise capital and get listed on stock exchanges like NSE and BSE.
You can apply for an IPO through your broker using the ASBA (Application Supported by Blocked Amount) process or via UPI through the ATS IPO portal.
Mainboard IPOs are for large companies with high net worth requirements, while SME IPOs are for Small and Medium Enterprises with lower entry barriers but higher minimum lot sizes.
A price band is the range (floor price to cap price) within which investors can place their bids for an IPO.
The cut-off price is the final price at which shares are issued to investors, decided based on the demand during the book-building process.
If an IPO is oversubscribed, the allotment is typically done via a lottery system for retail investors, as per SEBI guidelines.
Listing gain refers to the profit an investor makes if the shares open at a price higher than the IPO issue price on the first day of trading.
Typically, IPO shares are listed on the stock exchanges within T+3 to T+6 days after the issue closes.
Our experts are here to help you navigate the IPO landscape.