IPO Questions and Answers

IPO Related Frequently Asked Questions

What is latest IPO subscription status?

Latest IPO subscription shows demand for a new offering. High means strong demand, low means less. Check daily on stock exchange BSE / NSE, IPO Registrar websites or on Broker Websites. Helps investors decide whether to join. For example, Adani Wilmar’s IPO was subscribed 12 times, indicating strong interest.

What is an IPO called?

An IPO stands for “Initial Public Offering.”

How can I make sure that an investment advisor is registered with SEBI?

You can check if an investment advisor is registered with SEBI by visiting the SEBI website to view a list of registered IAs.

How do I participate in an IPO?

You can apply an IPO through a broker, physical application, or through a mutual fund.

What are the benefits of investing in an IPO?

Investing in an IPO offers early entry into a growing company, potential for listing gains, diversification, liquidity, access to new sectors, and a chance for long-term growth.

What are the risks of investing in an IPO?

Investing in an IPO in India entails risks like market volatility, uncertain performance of newly listed companies, lock-in periods for promoters and early investors, lack of historical data, aggressive IPO pricing, allocation uncertainties, business risks, liquidity risk, and management uncertainties.

Where to find draft offer documents DRHP filed with SEBI India?

Visit the SEBI official website (www.sebi.gov.in) and navigate to the “Home » Filings» Public Issues» Draft Offer Documents” filed with SEBI. You should find links to “Draft Offer Documents”of companies that have filed for IPOs or public offerings.

What is grey market of IPO?

The “grey market” of an IPO refers to the unofficial and unregulated market where shares of a company’s IPO are traded before the official listing on a stock exchange. In the grey market, investors can buy and sell shares among themselves based on their expectations of the IPO’s future performance. “READ MORE — IPO Grey Market: A Risky Way to Invest in IPOs”