Basic IPO FAQs

To get maximum allotment in retail category,How many lots should I apply in IPO?

1. 1.IPO will be oversubscribed multiple time in the retail category

No matter how many lots have you applied for, you will only get one lot. This is because the lottery system is based on how many retail categories IPO subscribers. You should only apply for one lot in any good issue that is likely to be heavily oversubscribed.

2. IPO might not be fully subscribed in the retail category

An IPO that's not popular or where the retail category subscription is lower than or equal to one will result in you only getting as many lots as your application (maximum share limit of Rs 2 lakh, which is the retail category maximum limit). This scenario presents a serious risk because there isn't much demand for IPO shares. Prices may drop on the listing day.

It is recommended that always apply in all cases.

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?