What Is IPO?

In simple terms

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Definition

IPO stands for initial public offerings, involves first time issuing of shares for general investors in the primary market.

Purpose

One primary objective is to raise capital from the market and gain public listing status. Another benefit it offers is liquidity to promoters and original investors.

What Decides IPO Price?

Demand for the company's share influences price. But factors like industry comparables, growth prospects, and the company's story also play critical roles. 

Good Investment Or Not?

Not all offers are equally good. Do your research to learn about the risks involved before investing.

Upcoming IPOs

An authentic source is to check stock exchange websites. Some third-party websites also publish IPO calendar containing dates, IPO size and other details.

How To Apply

The best way is to buy through a stockbroker or applying through the net banking of your bank. 

Early Bird Not An Advantage

It is good to bet your money after you get some clarity on the offer. Sometimes an IPO can be overhyped but fail to generate a satisfactory return on investment.

Check IPO status

IPO registrar publishes allotment status on their website after finalisation of the allotment process. Stock exchanges and DP's websites also post the same list.

In Case Of Oversubscription

The company can offer more shares to meet the demand or raise the price. It means the company can raise more capital comfortably.

Improve Your Chances

Avoid large application. Submit multiple applications with different PAN numbers. Appy with correct details to avoid disqualification.

What's Listing Gain?

You can sell IPO shares on the day of listing to get 'listing gain'. It happens when IPO shares debut at a higher price than IPO cost.

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