Basic IPO FAQs

What do you mean by Basis of allocation or basis of allotment?

The registrar of an IPO and the investors of IPO publishes a documents i.e. The Basis of Allotment, or Basis of Allocation. This document contains information on the final price for an IPO, information about issue subscription (bidding), and share allocation ratio.

The IPO information is categorized according to the number of shares an applicant has applied for. This document contains detailed bidding information for each category, including the number of valid applications received, the total share applied, the ratio of allotment, and the number of shares that were allocated to applicants.

The ratio of the allotment field is crucial for IPO's that have been oversubscribed multiple time. This field indicates how many applicants will be eligible to receive a single lot of shares from a given number of applicants. Ratio 1:8 is an example of how only one of eight applicants received one lot of shares. The ratio value of 'FIRM" means that all applicants are eligible for a certain share.

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?