Basic IPO FAQs

How to apply for multiple times in a IPO?

Multiple applications cannot be submitted by the same person for the IPO. You can place multiple orders if you apply for each family member. However, all family members eligible for demat accounts and PAN numbers should be able to apply.


Why companies go for less than 7 days bidding (i.e. 3, 4 days generally), When maximum number of days for which IPO bid should remain open is 7 (and minimum is 3)?

Book-built IPOs have a minimum and maximum period of bidding that is 3-7 working days. This can be extended by 3 days if the price band is changed. The majority of companies prefer 3 days. The following are some factors …


List down the timelines for book building IPOs in India.

According to SEBI, India's regulator of stock markets, Indian companies should adhere to the strict timelines. Because there are many parties and steps involved in the IPO process SEBI has clearly defined time frames for each step. The following timelines …


In IPO processing , what is the role of 'Syndicate members'?

Syndicate members are the broking firms responsible for distributing IPO application, receiving filled applications by investors, and updating the data on the stock market IPO shares bidding platform (NSE / BSE).


What is IPO Funding?

IPO funding (or IPO Financing), is a loan that can be used to apply in the primary stock market by NBFCs to high-net worth individuals (HNI). The lender funds the rest of the amount and only a small margin is …


What does IPO stands for?

The initial public offering (IPO) is the first public offering of stock in a private company. These IPOs are typically issued by smaller, more youthful companies looking for capital to expand. However, they can also happen by large, privately owned …


What do you mean by BID QUANTITY & BID PRICE?

Bid Quantity indicates both the price a potential buyer is willing and the amount they are willing to purchase at that price . Market makers, unlike retail buyers, also display an ask price. Bid price is the price at which …


In an IPO how the cutoff price is decided?

After considering the requirements of the investors and the book, the LM & issuer determines the cutoff price for the stock.


How many days does a cheque takes to be cleared for application of an IPO?

When applying for an IPO, cheques were a common method of payment. After the allotment, refunds took 3 to 5 business days. You can now apply online through ASBA (Application Supported By Bank Account).


What does listing of IPO means and how is it done?

The securities of the company that are listed on an IPO are available for trading on recognised stock exchanges. Investors can trade company shares after the listing. A process must be followed to ensure a successful listing. A Lead Manager …


Differentiate between call option & put option.

Call Option and Put Options Difference Option Call Option Don't force anyone to buy, but give rights. Don't sell, but give rights Investors set a strike limit when they expect the price will rise. Investors can place a strike limit …


How much time an issue takes to list in market?

It takes 6 days to list in the market.


In IPO, who can apply for QIBs? What are the rules and regulation for QIB?

According to SEBI, the following institutions are eligible to apply for QIB: Mutual Funds Venture Capital Investors SEBI has registered foreign venture capital investors Register Foreign Institutional Investor with SEBI Post dept. Insurance funds are set up Insurers Funds are …


What does pre IPO placement mean? Is it worth buying any script during pre-IPO placement? How will it benefit customers?

When a portion of an IPO is placed with private investors right before the IPO is scheduled to hit the market, a pre-IPO placement occurs. Typically, private investors in a pre-IPO placement are large private equity or hedge funds that …


Can a private limited company subscribe in non-institutional category?

Individual investors, trusts and private companies that apply for more than Rs 2. lakh shares are considered NII. They are not required to register as SEBI, just like RII.


Define the category of 'private family trust' for applying in IPO . Retail Bidder or Non-Institutional Bidder ?

Private family trusts are a way to plan for the future and protect the interests of legal heirs. Depending on the author's choice, the trustee could be a relative, a family member or a professional team. Private Family Trust Companies …


For applying in an IPO ,what will be the category of 'Private Family Trust'?

Private Family Trusts can apply for IPO in non-institutional (NII). Private family trusts are used to plan for succession. It protects the interests of legal heirs. Depending on the wishes of the author, the trustee of the private trust may …


How can someone fill IPO online?

ASBA allows you to following things. Log in to your net bank account. Click the link 'IPO Application' in the Request section of the left-side menu. Choose the IPO you wish to apply for, and make up to three bids. …


Before the listing of stock,can we sell the stock allotted to us in an IPO?

You can also sell 50% if your stock has greater than 40-50% gains. 100% if your stock has greater than 70% gains at 10 AM on the listing day.


What does over the counter trading mean?

Over-the-counter trading involves direct transactions between two parties, without supervision from an exchange. Each party may have credit risk concerns regarding the other party. OCT does not publish the price.