Basic IPO FAQs

In an IPO, can an individual apply for non institutional category of bidder?

Yes, in an IPO an individual investor can apply for the Investors Non Institutional category.

"Non-institutional bidders" are individuals, NRI's and companies that bid more than Rs 1 lakh. They do not need to register with SEBI as RII's. The Book Build IPO's allocation to non-institutional bidders is 15%.

Retail investors have few options and disadvantages when applying for the IPO under the non-institutional category.

The advantage is that there is no limit on the amount you can apply. Individual investors can bid for any amount within this category, except the limit of Rs 100'000 in the Retail category.

The disadvantage is that 15% of shares are not part of the Non Institutional Investors category. Retail Individual Investors (RIIs), which holds 35% of the total shares, has 35%. This means that the Non Institutional category is heavily oversubscribed and there are less chances of getting allotment.

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?