Ask any query small or big on IPOs. And do share info with all on IPOs, under this topic.
Thanks,
Natraj
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Ask any query small or big on IPOs. And do share info with all on IPOs, under this topic.
Thanks,
Natraj
Usually when you apply for an IPO, you have to pay the entier cost of the lot which is blocked till such time the scrip gets listed. (Usually 30 - 45 days if am not wrong)Quote:
Partial pay for IPO - Can some one explain what is this pay 25% initially for IPO and once share is alloted pay remaining.
Ex: 100 units at Rs 110 = Rs 11000/-
This Rs 11000 gets blocked till the scrip is listed. ( Usually 30 - 45 days if am not wrong)
Where as with an option of paying 25% you have to pay only Rs 2750 and the remaining 8250 after the IPO is listed and provided you get the allotment.
Thanks Master.
An initial public stock offering (IPO) referred to simply as an "offering", is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.Quote:
What is an IPO?
Source - wikipedia.org
What is grey market in IPO?
Hi everyone,
I am a newbie in Shares trading. I am trying to learn - how to invest in shares and MFs? Can you please tell me how can I apply for an IPO?
thanks in advance
Sandeep
Grey market refers to the buying/selling of shares that are going to be issued in the future and are not yet listed in stock market. This usually occurs few days before the subscription for the IPO opens. Usually this is taken as a forecast of the prices that markets expect on listing. Eg. So in case we say Any New Shares IPOs grey market premium is 50-60 that would mean we can expect a listing price of approx 150 (100 upper band of IPO price + 50).
You can use online or offline both mode to apply for an IPO. In online you directly go to the IPO section and apply. In offline, you have to take IPO application from the agent/ broker and fill it with your details and demat account and submit the form with cheque to designated banks. And take the deposit slip.
Happy Investing!
Thanks >take. I have one more query - What is bookbuilding method in IPO? How shares are alloted under this method?
Thanks again!
Sandeep
Book building is the process of price discovery. During the fixed period of time for which the subscription is open, the book runner collects bids from investors at various prices, between the floor price and the cap price. Bids can be revised by the bidder before the book closes. The process aims at tapping both wholesale and retail investors. The final issue price is not determined until the end of the process when the book has closed. After the close of the book building period, the book runner evaluates the collected bids on the basis of certain evaluation criteria and sets the final issue price.
Source - Wikipedia.org
What is listing gain? (I have read about this in some forum and people talk about listing gain with IPO.)
What is Greenshoe option in IPO?
IPO are generally priced at a discount, which means that if the intrinsic value of a share is perceived to be Rs.100 the shares will be offered at a price, which is lesser than Rs.100 say Rs.80 during the IPO. When the stock actually lists in the market it will list closer to Rs.100. The difference between the two prices is known as Listing Gains, which an investor makes when investing in an IPO and making money at the listing of the IPO.
A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option.
Source - investopedia.com
I have two demat account one with ICICI Direct and another with HDFC Sec. Both of them offer online application to apply IPO online. I have a query that -Can I apply through both the above account? or is there any restriction in it.
You can apply from any of the account, but if you apply from both the accounts than the allotment will not happen to you. Because at the time of allotment they check with PAN no. and if they find similar PAN no., they will remove you from the list.
Queries -
1- If an issue is oversubscribed.what happens to exta money we paid, when is it returned back [usual time frame]?
2- In partial payment option in some cases, extra money paid at the time of application, when is it returned back [usual time frame]?
The excess money should get alloted to you before listing and you should able to trade on the opening day itself.Quote:
Queries -
2- In partial payment option in some cases, extra money paid at the time of application, when is it returned back [usual time frame]?
What is the max limit of amount (application money) per application?
I have applied Coal India IPO for Rs.50,000/-. Now I wanted to increase it to max retail limit of Rs.1,00,000/-.
1- Do I have to make another application?
2- Can I withdraw my old application (Rs.50,000/-) and apply with fresh application of Rs. 1,00,000/-
Please suggest.
Only one application is allowed for one person. If you apply than your application would be rejected.
You can withdraw. But it will have an impact on the fresh application, because your name is already in their data for old application, so new application might got rejected due to two application.Quote:
2- Can I withdraw my old application (Rs.50,000/-) and apply with fresh application of Rs. 1,00,000/-
Please suggest.
So best option is to keep old application.
Where can we see the latest subscription figures of an IPO?
Go to http://www.nseindia.com/
I have 5 lacs to invest in IPO. Please suggest how can I apply for an IPO - with maximum applications with my name? Or do I need to apply with different applications (different Demat acounts of my family members)?
Retail investors IPO application limit set to increase to Rs 2 lakh
http://economictimes.indiatimes.com/...ow/6806018.cmsQuote:
Retail investors will get to double their bets on initial public offerings as the market regulator is set to raise the limit to Rs 2 lakh
What is the bookbuilding Method in IPOs? Please explain in layman terms.
As per Book building method, the IPO issuing company doesn't fix the price in advance, rather gives a price band to the investors within which they are entitled to bid. The investors, in turn, bid for the same by stating the quantity as well as the price of the IPO shares at which they are interested to purchase. IPO's final price is then determined on the basis of all the bid prices.
Can I use my saving account to apply for IPO by using demat account of my friend?
Mohan - Why not you apply IPO with your friends name and later on transfer shares in your demat account.