Basic IPO FAQs

In an IPO,can a minor also apply?

An IPO is open to minors who have a demat bank account. To open a demat card, one must have a PAN Card. A minor who does not earn money will not receive a PAN card. On behalf of the …


An issue is required to kept open for how many days?

Different types of issues have different opening periods. The time for which an issue must be kept open is: Public Fixed-price issues take 3-10 working days Book-built public issues: 3-7 working days, extendable by 3 business days in the event …


Without an IPO,how can a company get listed in stock exchange?

SEBI recently permitted SMEs to list specified securities on the Institutional Trading Platform, (ITP), of a recognized stock exchange without the need for an IPO. SEBI has notified a set of new regulations, the SEBI ("Listing of Specified Securities On …


What is the procedure for withdrawal in IPO?

Within the bidding period, you can withdraw your IPO application.You can select the IPO through order book. You can then withdraw your application. In a few days, the blocked money will be released. If the online cancellation option does not …


For an IPO,How much tax I have to pay on returns(Capital gains)?

Capital Assets (stock, property and precious metals) that are sold or transferred can be taxable as capital gains for the year in which they occur. Capital Assets can be divided into two types: long-term and short-term. When they are held …


List down determining factors for selection of IPO to invest.

These are the deciding factors in deciding whether an IPO is worth your investment. Background and business of the company Financials of the company Promoters of the company, their background Motive for raising funds The number and size of the …


For retail investors,why does maximum subscription amount is limited to Rs. 2 laks

SEBI has divided investors into two categories: investor type and investment amount. The maximum amount a retail investor can invest in the financial definition is Rs 2 lakh. The retail investor cannot invest more than Rs 2 Lakh. However, the …


Can both the holders of joint demat account apply individually for an IPO?

They can't. These are the rules: Individuals Joint Bids Bids can be made either in one name or jointly. Joint Bids require that the Bid cum Application Form only contain the name of the First Bidder. This name should also …


List down the risk factors involved in applying in an IPO.

Applying for an IPO involves many risk factors. Here are some: Investors may not receive any shares. If there is an excess subscription, shares will be allocated proportionately. In this case, small investors are unlikely to receive any allocation. The …


Why does every hour the retail Individual Investor RII bidding status is not getting updated ?

Stock exchanges provide information about IPO subscription details and bidding status for book-building IPO when IPO is open to bidding. This information is usually published by the NSE and BSE websites. Only a portion of the bidding status is updated …


Define Right issue or RI.

A public company can choose to issue a Public Note or a Right Issue if it wants to raise capital. They often choose the latter followed by the former. Existing shareholders can buy new shares at a specific price and …


How is Listing price of IPO decided?

The syndicate of investment banks that are performing the IPO through a process known book building decides the listing price.


How someone can apply online for IPO?

Investors must open a trading account or demat account to apply online for IPO's. Many national banks (SBI and HDFC, ICICI etc.) offer this service. Popular stock brokers such as Sharekhan, Angel, etc. India allows you to apply online for …


Can a buy order be placed during after hour session before IPO listing date?

You cannot order shares that are not yet listed on the stock exchange. You cannot even trade after hours. The exchanges permit a pre-open trading session to trade IPO shares only on the first day of trading. Pre-open sessions last …


Is there any minimum and maximum limit of the investment one can do in the HNI category?

All retail investors who make bids exceeding Rs 2,00,000.00 are considered to be in the HNI (Non-Institutional Investors) category. Therefore, the minimum amount of investment for HNIs in an IPO would be Rs 2,00,000. The maximum amount of investment is …


In an IPO, can an individual apply for non institutional category of bidder?

Yes, in an IPO an individual investor can apply for the Investors Non Institutional category. "Non-institutional bidders" are individuals, NRI's and companies that bid more than Rs 1 lakh. They do not need to register with SEBI as RII's. The …


Provide tips to choose right IPO.

Checklist to bank on the right IPO. Premium Investments. 1. 1.The issue size must be large. The promoters' ability to handle the issue should also be larger. 2. Money is the best way to make more. 3. It is essential …


Is a minor eligible to apply for IPO?

Some companies allow minors bid on their IPO while others don't. It all depends on the IPO to IPO. This information is typically found under the section " Who can Apply?" in the IPO Prospectus. Take, for example: Religare Industries …


Where IPO application forms are available?

The IPO Application Forms can be found : Nearest stock brokerage office The syndicate member office is where an IPO is conducted. Syndicate members are usually financial institutions. SBI. IPO Prospectus contains a list of members of a syndicate. IPO …


Can IPO application be revised or cancelled?

Book Building IPO: An investor can review the bided quantity or price of an existing Book Building IPO at any time, provided that the issue is still available for subscription. The investor must complete a revision form, and submit it …