Basic IPO FAQs

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 is appointed by an issuer.
  • For a due diligence certificate, work with LM
  • Register with SEBI.
  • To initiate an IPO, you must get approval/disapproval by SEBI
  • SEBI will approve the preparation of listing documents, including DRHP, with the assistance of LM.
  • Appoints registrars and banks to act as intermediaries.
  • Advertise for the IPO.
  • You can decide the price per share using either fixed price or book-building mode.
  • The application window is generally open for a few days to subscribe and closes at a predetermined time.
  • The registrar of the public sale issues shares to investors after the subscription window closes.

The shares will be available for trading at stock exchanges upon their listing.


What do you mean by IPO?


By whom the 'Price Band' is decided?


'Date of issue' is decided by whom?


What a registrar of an IPO does?


What is role of Lead managers in IPO?


What does 'follow on Public offering' or FPO means?


What are Primary market & Secondary market?


How can you define the life cycle of an IPO prospectus?


What are the life cycle of an IPO?


what are the basic differences between Book building and fixed price issue


How is Floor price different from Cut-off price for a book - building issue


Differentiate between RII,NII,QIB, & Anchor Investor


Retail investor, I would like to invest more than Rs 1 lakhs in an IPO. What is the best way to invest in the Non-institutional bidders' category? What are the pros and cons of investing in this category?


Is PAN number mandatory for applying in an IPO?


IPO remains open for how many days?


After submitting the application in IPO,what details I should keep?


For an IPO,what is the 'Market lot size' & 'Minimum Order quantity'?


Will I get guaranteed amount of shares if applying for an IPO?


Is investing in IPOs less riskier than in direct stock market?


Can someone apply through more than one application in IPO with the same name?