Upcoming IPO

Investors commonly believe that the prices of stocks will increase after an initial public offering. That is why they rush to buy stocks, especially with good fundamentals, during an IPO to buy low and sell high.

No, a company that has already been listed on a stock exchange cannot issue IPO. By definition, IPO takes place when a company offers its shares for the first time. Listing on an exchange comes with an IPO. However, already listed companies do make public offerings which are in addition to their IPO, like Follow-on Public Offer (FPO).

No, you cannot buy IPO shares without having a Demat account since share certificates are not issued in the physical format any longer. They are stored electronically in your Demat account.

Yes, investors can buy IPO shares through Geojit in a secure, reliable, and easy manner. Through its e-IPO platform (https://www.geojit.com/eipo) investors can subscribe to IPOs. Investors can also access in-depth research reports and get help from its vast network of customer support.

Yes, investors can choose to sell their IPO shares on the listing day itself. However, they will be liable for ordinary tax implications.

IPOs are a cost-effective way of raising capital for companies. Companies usually go for an IPO to fund their growth and expand operations. Moreover, going for IPO increases the company’s credibility since it must pass SEBI’s prerequisites before getting listed.

Minimum Order Quantity is the minimum number of shares an investor can apply while bidding in an IPO. If an investor wants to bid for more shares, they can apply in multiples of IPO market lot (lot Size or IPO bid lot) of shares.

No, applying for shares in an IPO or bidding for shares in an IPO doesn't give any guarantee to get the shares. As it's a bidding process, allotment depends on the number of bids received in different categories, the price at which the investor applied for shares etc.

The primary market is the market where investors can buy shares directly from the issuer company to raise their capital. A secondary market is a market where stocks are traded after they are initially offered to the investor in the primary market (IPO's etc.) and get listed on the stock exchange. The secondary market is a platform to trade listed equities, while the primary market is the way for companies to enter into the secondary market.

IPO share allotment usually takes one week from the closing date for subscription.

Shares are transferred to your Demat account just before the day of listing the IPO shares on the stock exchanges.

Investors are broadly classified under the following categories:

• Retail Individual Investor (RIIs)
• Non-Institutional Investors (NIIs)
• Qualified Institutional Buyers (QIBs)

'Retail Individual Investor' means an investor who applies or bids for securities for a value of not more than Rs 2,00,000.

Choose retail investors category (RII). However, if you are investing more than Rs 2 lakhs then you will be considered as a High Networth Individual (HNI). The HNI bids fall under the Non-Institutional Category (NII).

As per SEBI guidelines, the minimum reserve portion for retail category in an IPOs is 35%. Any IPO offering less than 35% of offered shares is violating the guidelines issued by SEBI.

The issue price of an IPO is the price at which a company sells its shares. The IPO is then listed in the exchange. The listing price is the opening price of the share on the listing day.

An initial public offering (IPO) is deemed to be oversubscribed when the number of shares that investors have applied for exceeds the shares offered by the company. In case of an oversubscription, the shares are allotted through a draw.