Book-building, lot size, anchor investors, GMP and the full IPO journey.
An Initial Public Offering (IPO) is the first time a private company offers its shares to the general public on a recognised stock exchange, raising capital while giving investors partial ownership.
Book building is a price discovery mechanism used in IPOs where the issuer collects bids from investors within a price band to determine the final offer price.
An IPO lot size is the minimum number of shares an investor must bid for in a single application, as determined by SEBI guidelines and the issuing company.
An anchor investor is a qualified institutional buyer who subscribes to shares in an IPO one day before it opens, providing early price discovery and market confidence.
IPO GMP (Grey Market Premium) is the unofficial premium at which IPO shares trade in an unregulated grey market before they are officially listed on NSE or BSE.
A Draft Red Herring Prospectus (DRHP) is the preliminary IPO document filed with SEBI that discloses a company's business, finances, risks, and the purpose for raising capital.
IPO allotment status tells you whether you have been allotted shares in an initial public offering, and if so, how many shares and at what price.
IPO listing day is the first day a newly issued company's shares are traded on a stock exchange such as NSE or BSE, marking the transition from allottee to public market participant.
IPO oversubscription occurs when the total number of shares bid for by investors exceeds the total shares on offer, indicating demand far outstrips supply.
An FPO (Follow-On Public Offer) is a fresh issue of shares to the public by a company that is already listed on a stock exchange.
An Offer for Sale (OFS) is a stock-exchange mechanism that lets existing promoters or large shareholders sell their shares directly to the public without the company raising fresh capital.
A rights issue lets existing shareholders buy new shares at a discount, while an IPO is a company's first-ever sale of shares to the general public.
An SME IPO is a public offering by a small or medium enterprise on a dedicated exchange platform - NSE Emerge or BSE SME - under a lighter regulatory framework designed to help smaller companies raise growth capital.
An IPO price band is the range between a minimum (floor) and maximum (cap) price within which investors can bid for shares during a book-built public offer.
The cut-off price is the final IPO issue price discovered through the book-building process, at which shares are allotted to successful bidders across all investor categories.
A UPI mandate for IPO is a payment instruction that blocks the application amount in your bank account until allotment, without transferring the funds to the issuer upfront.
ASBA (Applications Supported by Blocked Amount) is a mechanism mandated by SEBI that blocks IPO application funds in an investor's bank account rather than debiting them upfront, releasing the money only upon allotment.
A comparison of two popular investment routes for Indian retail investors: IPOs, which offer direct access to newly listed companies, and mutual funds, which pool money across diversified portfolios managed by professionals.
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