How many days an IPO remain open for public?

Short Answer

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.

Detailed Answer

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:

  1. Book Building issue
  1. Fixed price issue

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.

Tagged With: IPOPubliccompanybook buildingfixed price
Categories: IPO Basics
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Related FAQs

What is an IPO or Initial Public Offering?

IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time.

How many IPO applications can I submit through online net banking from one bank account?

There are about 5 IPO applications that can submit through online net banking from one bank account. However, the number can change immensely from one bank to another.

I want to invest for short time so please let me know which IPO will give positive gain?

Selling the IPO shares on the first day of its listing could get you considerable postive gains. But there is a higher chance for the prices to rise and even fall if you wait for a more extended period.

How to increase IPO allotment chance?

Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

What Happens when an IPO is oversubscribed in India?

IPO is alloted by following the pre-defined rule laid down by the SEBI. When an IPO is oversubscribed it gets allocated by considering the minimum lot size. If still not solved, then a computerized draw of lots is conducted.

Can a minor apply in IPO?

Have you ever wondered id a minor can apply for an IPO? Yes, a minor can apply for an IPO given that he/she has a PAN card and a Demat account.

How to sell IPO?

You can sell your shares of an IPO through the stockbroker application or website. Let's see what's the simple process to sell the shares you hold.

Can we apply for an IPO online on Sunday?

Yes, you can apply for an IPO application on Sunday as well but through an online application. But, you need to keep few points in mind before doing that.

Can a person apply in the non-institutional bidder category of an IPO?

Yes, an individual investor can apply through a non-institutional category of an IPO given that they have enough influx to bid in the category.