Initial Public Offer

“If you can get an IPO, don't buy it. Only buy IPOs you can't get.”
- Vahan Janjigian (CEO-Greenwich Wealth Managament, Former Editor & Columnist)

Initial Public Offer is a great investment avenue, considering it is done with sufficient research and advice. Let’s see why:

IPO investments may prove to be profitable, be invested with the help of thorough analysis, and listing process ensures the current financial status of the company. Apart from these advantages, as per SEBI regulations ensuring that allotment must take place within a week, it ensures that investors either get their shares allotted or their money refunded in 7 days or less.

So what is IPO really? Let’s learn more about IPO’s and how to invest in them.

An Initial Public Offer (IPO) is the first sale of the stock of a company issued for subscription from public. Every listed company on the stock exchange has to primarily go through an IPO before trading its stock in the exchange. Companies that go through the process, and issue stocks to the public are called public companies, likewise those companies which are not traded on the exchange are called private companies.

Private companies often opt to go public or do an IPO when:

  • They want to raise capital from the public;
  • They want their stocks to be publicly traded;
  • They want to provide an exit strategy to existing investors; and other like factors.
Important Terms to Remember:
  1. Opening & Closing Dates: The date on which the IPO begins is the Opening Date and the date on which it ends is the Closing Date;
  2. Price Band: It is the range of the offer price between which the investor can bid for an IPO. Lowest price is called the Floor Price and highest price is called the Cap Price.
  3. Book Building Process: BBP is the demand-based process used to determine the final offer price of stock to be issued;
  4. Lot Size: It is number of shares which comprises in one Lot. An investor must necessarily bid for at least the minimum lot size, which may be limited to a maximum lot size;
  5. Issued Capital: The amount of capital which is issued for public subscription, which will be divided into shares and lots;
  6. Promoter’s Holding: Promoter’s shareholding before and after the IPO shows a crucial image of the company.

Investments in IPO’s can be tricky if not done with adequate advice and research. Here are a few things to keep in mind while investing in an IPO:

However, this isn’t a foolproof list to ensure your investments are going to give you returns. It is always better to get expert advice before you make any investment.

Upcoming & Existing IPO’s

Let’s have a look at the Upcoming and Existing IPO’s that we recommend to have an edge in which you can invest:

Upcoming IPO’s

Existing IPO’s

Important Notice: "Prevent Unauthorised transactions in your Trading /demat account --> Update your mobile numbers/email IDs with your stock brokers / Depository participants. Receive information/alerts of your all debits and other important transactions directly from Exchange /Depository on your mobile/email at the end of the day .......... Issued in the interest of investors"                           KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."                          “No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.”