IPO- Initial Public Offering

Ans. Yes, you can revise or cancel your online IPO application anytime. 

Ans: Go to Rupeezy DOCK portal, navigate to IPO section. You will find a list of active and upcoming IPOs. Go to Active IPOs and click on Apply.

Ans: IPO issue size is the total amount of funds a company plans to collect through the IPO issue. It includes issue of fresh equity shares and sale of existing shares from owner or existing shareholders.

Ans: You can subscribe to any IPO as long as you have an active demat account. You can apply to an IPO by filling a physical application form or online. With Rupeezy you can subscribe to an IPO in a few clicks. Open a demat account and apply to E-IPO here.

Ans: IPO start date is mentioned in the issue’s Red Herring Prospectus as well as in the Details section of every issue on the E-IPO page

Ans: Yes, you need to have an active demat account to apply for an IPO.

Ans: The minimum and maximum investment limit is defined by the issuer of the IPO, there is no generic minimum or maximum limit.

Ans: IPOs may not always give a profit, the price after listing depends on the demand the market sentiment and overall market’s view on the issue. In the long term a good business with sound fundamentals will make money for the investor.

Ans: An IPO or Initial Public Offering is the process by which a private company sells its shares to the public in the primary market. There are two types of markets; Primary market where shares are issued directly to public and secondary market, the stock market where listed securities are traded among investors. IPOs are issued in the primary market.

Ans: In effect, a privately owned company goes public by way of an IPO. A company raises funds through an IPO to fund its growth or expansion, pay off debt, build its credibility and name and raise liquidity by selling part of the privately held shares.

Ans: An IPO has two components: Fresh Issue and Offer For Sale. A company issues fresh equity shares to the public through Fresh Issue of shares. Offer For Sale is the sale of equity shares held by promoters or existing investors.

Ans: As per SEBI norms, IPO investors are segregated into three investor categories: Retail individual investors QIB (Qualified Institutional Buyers): Thi category includes mutual funds, FIIs (Foreign Institutional Investors), DFI (Domestic Financial Institutions - Banks, Insurance Cos, Financial Institutions, Others NII (Non Institutional Investors): This category includes Corporates, Non Retail Individuals, Others

Ans: To invest in an IPO you must apply under one of the categories of investors as mandated by SEBI. Demat Account: You need to have an active demat account with Rupeezy PAN Card: It is mandatory to furnish your PAN details in an IPO application. UPI ID: For an online IPO application, a UPI ID is required for fund transfer. Sufficient funds: When you apply for an IPO, the investment amount is blocked in your bank account and transferred to the company upon allotment. In case the balance is not sufficient, your IPO application will be rejected.

Ans: IPO subscription period is the time during which investors can apply for purchase of shares being offered through the public offering. An IPO is open for a limited period of time for subscription and dates are announced in the prospectus and communications by the company to the public.

Ans: After the IPO subscription period is closed, the allotment process takes place. Depending on the bids received, shares are allotted to investors.On the allotment dates, shares are credited to your demat account. In case your bid does not qualify, the amount is refunded to your account. On the specified listing date, shares are listed on the stock exchange in the secondary market. Now the shares are open for buy and sale trades to all as per the market movements.

Ans: Go to Rupeezy DOCK and navigate to the IPO section. Select the IPO from the Active IPO category. Here you can view all the IPO details. You can read the Red Herring Prospectus for the issue details. Select the market lot, minimum bid quantity, bid price. While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. Enter UPI ID for payment. Click the checkbox that you’ve read the prospectus and enter Submit to complete the order. The amount is blocked once you complete the transaction. The money is transferred to the company after allotment or refunded to your account.

Ans: You can find the list of upcoming IPOs on our website Rupeezy

Ans: IPOs present an opportunity for investors to participate in a company’s growth story. However, one must consider a few factors before investing in any IPO: Your Goals: Before investing in an IPO or equity markets, you must understand your financial goals and risk tolerance. Equity investments come with a volatility risk over the short term. Investors must be willing to stay invested, bear the market fluctuations and stomach the risk to capital. Assess your goals, asset allocation and time horizon and ability to take risks. Objective of the IPO: Understand the objective of the IPO, what is the purpose for raising funds. Companies may raise funds to fund their expansion and growth or pay off debt. As an investor, you must know how your money will be deployed. Red Herring Prospectus: SEBI mandates every IPO bound company to file a Draft Red Herring Prospectus (DRHP). This is a detailed document that contains all the important information about the company’s business, vision, products, markets, competition, future prospects, plans, promoters, key personnel, strengths and risks. Apart from the company’s business, prospectus will help you understand the overall industry and competitive landscape, global factors and general economy. Financial Details: A DRHP contains financial statements of the company for the last few years. You can understand the financial health of the company from its revenue, profits, debt, cash reserves over a period. A basic overview of these numbers will give you a glimpse into the company's past performance and future prospects. A few ratios like price to earning ratio, debt equity ratio, return on equity in comparison with peers will help you in assessing the risk and financial health. Company News: Keep a check on the latest news about the company, it will give you an idea about any red flags, its growth and expansion plans, product and competitive landscape and economic factors affecting its business.