Basic IPO FAQs

Can an individual apply in IPO for both Retail (below 2 lakhs) and HNI (above 2 lakhs)?

An individual cannot apply for an IPO in both the Retail and HNI categories. Retail investors who apply for more than Rs 20,00,000 in shares in an IPO are automatically considered High Net Worth Individuals (HNI). HNI bids are classified under the Non-Institutional Category.

Retail investors are not eligible for discounts offered by companies.

The NII category also has a different way of allotment. Oversubscriptions will result in NII receiving a proportionate share of allotment. If IPO is oversubscribed 100x in this category, applicant will receive 1 share for every 100 shares he applied for. In the retail category, no matter how many shares were applied for, an investor will receive a maximum of 1 lot in the event of oversubscription.

In book build IPO,Retail Individual Investors (RII), holds a minimum of 35% out of the total issue share size. The NII typically have 15% of the shares reserved, while 50% is reserved for Qualified institutional buyers (QIB).

What do you mean by IPO?

By whom the 'Price Band' is decided?

'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?