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Invest In Equities Effortlessly
Open your free All-in-One trading account with zero hassle!
Invest In Equities Effortlessly
Open your free All-in-One trading account with zero hassle!
Initial Public Offering is the first stock which a company puts up for sale when it goes public. This is when a privately held company turns into a public entity and its shares are traded on the stock exchange. The company shares its ownership when it becomes a public company. Once the shares go public the company then allots it to the investors based on the demand for the shares. When the IPO Process is on, a small set of shares are reserved for different kinds of investors. They include investors like Individual or retail investors, Institutional buyers who are qualified and High Net worth Individuals. If you want to invest in an IPO you need to do deep research about the company you want to buy shares of. You need to check their historical records in terms of their IPO. You should see if their promoters are reliable or not. The products offered by the company should have a good potential for growth. Read the prospectus carefully.
IPO or Initial Public Offering is the first sale of stock by a company to the public. It is a way for the company to raise money from investors for its future projects or the selling of securities to the public in the primary stock market.
You can easily apply for an IPO online through UPI facility through Indiabulls Securities App. You can select the IPO, enter the number of Lots, enter UPI ID and then authorize the bid on UPI app. After the authorization, the bid is placed.
Initial Public offering of the following financial instruments are offered
1. Equity shares
2. Non-convertible debenture
3. Bonds
Fixed Price Issues - Price at which the securities are offered and would be allotted is made known in advance to the investors. Demand for the securities offered is known only after the closure of the issue. 50% of the shares offered are reserved for applications below Rs. 2 lakh and the balance for higher amount applications.
Book Building Issues - 20% price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding. Demand for the securities offered at various prices is available on a real-time basis on the BSE and NSE during the bidding period.50 % of shares offered are reserved for QIBS, 35 % for Non Retail and 15% for Retail Investors.
An IPO price band is the offer price of a company’s shares. The seller indicates an upper and lower cost limit, between which buyers can place bids.
