Basic IPO FAQs

what are the basic differences between Book building and fixed price issue

The initial public offering can be done through either the fixed price or book building method.

There is a difference between shares offered by book building and shares offered by a normal public issue-



Fixed price process

Book building process

PricingThe price at which securities are offered/allotted will be known to the investor in advance.The price at which securities are offered/allotted to investors is not known in advance. It is only possible to estimate the price range.
DemandOnly after the issue is closed, can the demand for the securities be known.As the book is being built, the demand for securities can be determined every day.
PaymentIf payment is made at the time subscription, refunds will be given after allocation.Only after allotment can payment be made

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?

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?