Basic IPO FAQs

By whom the 'Price Band' is decided?

The price and price range of an IPO are determined by the company with the help of lead managers (merchant bankers or syndicate members).

SEBI, India's regulatory authority or Stock Exchanges does not have any role in setting the price for a public issue. SEBI validates the contents of the IPO prospectus.

Before they set the price, companies and their lead managers conduct extensive market research and go on road trips. If they request a higher premium, companies run the risk of an IPO failing. Investors may not like the company or its issue price, and they won't apply for it. This can lead to an unsubscribe issue or undersubscribed issue. Companies can either raise the issue price or suspend the IPO.


    What do you mean by IPO?

    '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?

    In how many days does the issue open?