IPO is the primary stage where the company goes public and starts gaining investments from people. It is essential for the company to manage the details properly. For Public, IPO should remain open for at least 6 days and for maximum 10 days.
IPO- Initial Public Offering is a type of public offering in which shares of a company are sold usually when the company needs additional funds which can help them in expanding the business, increase their working capital, repaying the debts, etc. While the company issues IPO they need the change the company from private to public if it is not. IPO can be applied via both online and offline.
After receiving the applications: As per the clause 8.8.1, the public issue’s subscription list should be accessible to public for at least 3 working days but maximum for 10 working days.
There are two types of IPO:
In Book Building issue, the prices are determined within the band of the bidding process. The stakeholders need to decide and be agreed on a single price and then this is how the firm sells its shares to them. It can only have public issues like IPO and FPO. Its demand can be known on a real time basis and is also obtainable at various prices.
In this issue, the company commences 20% of the price range on the stocks to the people who invests. The minimum days for which trading is open is 3 days and the maximum days are 7, which can be extended by 3 days in case the revision is needed in the price range.
In Fixed price issue, the price is already mentioned in the brochure and then the shareholders need to buy the shares at that individual price. In this, the price is fixed for the public issue and consists of the total number of the shares that are to be obtainable by the public and its price detailing. In this case, this data is available only after closing the issue through an advertisement made by public, issued within 10 days of transmission of the certificates of allotment or refund orders.
In the primary market, right shares are issued on a pro-rata basis to the existing shareholders when they buy additional shares of the company at a price less than that of the actual market price. According to the clause 8.8.2., these shares and open for a minimum of 30 days and a maximum of 60 days.
An IPO or Initial Public Offering is where for the first time an earlier unlisted company sells new or existing securities and offers them to the public in the primary market.
IPO prospectus is the document which gives information to the investors about the company statistics before they issue shares in public. It is mainly a 3 step process. For detailed description, read through the blog below.
There are many ways to check the IPO allotment status but Zerodha doesn't provide this facility on their website.** To check the allotment status you can visit the website of the registrar of the IPO**, for example, Link Intime, Karvy. With the help of a PAN number, you can easily check the status.
IPOs can be a good option for beginners as they provide an opportunity to get the shares of good companies at an attractive price. Though IPOs can provide good listing gains and quick profits, good companies can help you to create massive wealth in the long term.
IPOs have been extremely popular lately as a result of increased retail participation, ongoing bull run, and massive listing gain opportunities. However, the Indian stock markets went through a minor correction which resulted in a muted performance of some IPOs. The market negativity coupled with the lofty valuations of some of the IPOs led to poor listing gains, but the craze might not be over.
GTT in Zerodha is an acronym for the Good Till Trigger feature offered by Zerodha that lets the investor select a trigger price and a set of predetermined conditions that as and when are met, an order is placed automatically.
Putting Stop losses for any position is an essential step to ensure that no major losses occur if the view on the underlying goes wrong. You should always place a Stop Loss when trading Intraday or positional. You can use a stop loss in Zerodha by following some easy steps.
IPO's (Initial Public Offering) is very popular right now. Therefore getting an allotment is not easy. There are two different ways in which you can find out your allotment status. These are through the BSE India website and the company Registrar's website. Know the details and another bonus way of finding out allotment status here.
Listed and unlisted are the two types of stocks in which listed can be described as the ones registered in stock exchanges while unlisted is not registered.
Stoxkart online discount broker also provides IPO investment facility to clients. The best part is that stoxkart facilitates both the Indian as well as NRIs to invest in IPO online.