What is IPO in India | What is the Full Form of IPO
An initial public offering (IPO) refers to the process of the First sale of shares of a private corporation to the public. These companies raise funds from the public through IPO for their working capital, debt payment, acquisition, and for their other projects.
Interested investors can apply for IPO stocks by filing an IPO application form, or through Net banking via ASBA, or can contact their broker to fill the said form through an online portal. financialmatters.in, India’s trusted IPO investment Portal, provide upcoming IPO information, their Grey Market Premiums, IPO News, IPO Allotment Status, IPO Performance, IPO Ratings
IPO Terminology | What is Initial Public Offer
- Exchange: The stock exchange where the IPO shares are proposed to be listed. Mainline IPO’s are listed on BSE and NSE. The SME IPO’s are listed on NSE EMERGE or BSE SME platform of the respective exchanges.
- IPO Open Date / Issue Close Date: The opening and closing date of the IPO bidding process. Investors can apply in an IPO during this time only.
- Lot Size: The minimum count of shares an investor can apply for in an IPO. A lot size of ‘400’ means that an investor needs to bid for at least 400 shares.
- Issue Price: The price per equity share. There are 2 types of IPO’s- Book Building and Fixed Price IPOs. Book Building IPOs will have a price range, say Rs 120-125 and investors need to bid within the price range. A fixed price issue has a specific price to bid.
- Issue Size: The total monetary value of the IPO. It is arrived by multiplying the number of shares offered by the company with the issue price per share.
What Is GMP In IPO | What is Grey Market Price
You already know the IPO better. If you have been investing in an IPO for a long time, you are unlikely to lose the gray market. You may have heard your broker say that the IPO is quoted at the gray market premium or with the gray market discount. What is the gray market and what do you mean by this gray market?
The gray market is the informal market but the IPO market is the official and recognized tool for fundraising in the market according to SEBI guidelines. There is no formal relationship between the IPO market and the IPO gray market. You know what an IPO is in the stock market, but it’s also important to know about the gray market in the IPO. For more GMP terminologies click here.
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