What is grey market in IPO?
What is grey market in IPO?
What I have heard in other communities that it exists in Gujrat. Unofficial buy sell of IPO before listing in the market.Originally Posted by MTG
how can I apply for an 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
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 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.
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).
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