Category: IPO

What is the Public Offering Price (POP)?

Whenever an IPO is offered to the public for subscription, there is a lot of excitement about it related to its expected listing price, the company’s business model, etc. But the key factor that an investor should consider is the Public Offering Price.

Here, we will give you an overview of the Public Offering Price, how it works, and why it is useful for an investor who is considering investing in an IPO.

What is the Public Offering Price?

The Public Offering Price is the price at which a company offers its shares to the public while raising money. It is the price at which the investor gets an opportunity to buy shares directly from the company instead of buying them through the secondary market. The company decides the public offering price only after considering several factors, including financial performance, future growth prospects, valuation, etc.

How Does Public Offering Price Work?

The Public Offering Price works in the following manner:

Decision to Raise Capital: This is the first step in determining the public offer price. The company decides to raise funds from public investors. The key purpose to raise fund can include business expansion, debt repayment, etc.
Company Valuation: Before deciding the company’s public offer price, it appoints a merchant banker to evaluate the company’s valuation. The value is decided based on several factors such as financial performance, business model, etc.
Announcement of Issue Price: The company announces the issue of shares through a fixed-price issue or a book-built issue. In a book-building issue, the company announces a price band within which an investor can place their bid.
Placing of Bid: Investors can place their bids once the IPO is open for subscription. In a book-building issue, investors can place their bid at any price at which they want to apply for the IPO.|
Analysing Investor Demand: Once the bidding period is closed, the demand for shares is analysed at different prices. This demand helps a company in understanding how investors are valuing the public issue.
Finalising the Public Offering: Once the IPO is closed, its final price is decided, which becomes the public offering price.
Shares Allotment: Once the IPO is closed, the shares are allotted to the investors who made eligible bids. The investors are allotted the shares for which they have applied.
Listing of Shares: After the completion of the IPO allotment process, the shares are listed on different exchanges such as NSE and BSE.

Example on Public Offering Price Work

Let’s understand how Public Offering Price work through an example:

A company named XYZ Limited decided to raise 1000 crore INR through an IPO. The primary objective of this issue is to repay debt and for business expansion. The company announced a price band of 200 to 220 INR per share.

Announcement of Price Band: The first step is that XYZ Limited sets an IPO price band of INR 200 to 220 per share. The investor can bid within this price band.
Bid Placement by Investors: During this IPO period, the investors placed their bids, and suppose most of the investors placed bids at INR 220 per share.
Deciding Price: The company analysed the bids and finalised the issue price at INR 220 per share.
Allotment of Shares: Suppose an investor gets the allotment of 50 shares in the IPO. The investment amount will be INR 11,000.
Listing of Shares: Now, suppose on the listing day the shares got listed for INR 240 per share. The investor’s notional gain would be 1000 INR. In this example, it indicates the Public Offering Price that an investor pays when they receive shares through an IPO.

How is the Public Offering Price determined?

The key factors that generally affect the Public Offering Price are determined in the following manner:

Financial Performance of Company: The key step is to understand the financial performance of the company. The factors include revenue, profitability, growth, debt level, etc.
Valuation of Company: The overall valuation of the company plays an important role in deciding the Public Offering Price. The valuation is compared with similar listed companies.
Future Growth Potential: The Public Offering Price is influenced by the company’s future growth prospects. The factors include expected revenue growth, expansion plans, etc.
Market Condition: The overall market condition can impact the public offering price. When the market has bullish sentiment, the company’s IPO will face higher demand and vice versa.

Public Offering Price vs Market Price

The key difference between Public Offering Price and Market Price is as follows:

Basis of Difference	Public Offering Price	Market Price
Overview	It is the price at which shares are offered to the public through an issue.	It is considered the current price at which shares are traded on the stock exchange.
Application	Public offering price is applicable only during the IPO issue.	This is applicable once the shares are listed on the exchange.
Who Decides	This price level is decided through the applicable IPO pricing process.	It is determined by market demand and supply.
Movement in Price	The price is fixed once the final issue price is determined.	It fluctuates during a continuous trading session.
Objective	It is the price investors pay for allotted IPO shares.	It reflects the price at which buyers and sellers are currently willing to trade.

What should an investor check before applying for an IPO

The key things that an investor should check before applying for an IPO are as follows:

Business Model: Understanding the business model of the company is essential before applying for an IPO. It includes understanding how a company makes money, its customers, etc.
Financial Performance of Company: A company’s past performance plays a vital role in deciding the growth of the company. One should pay attention to revenue growth, profit margins, debt levels, etc.
Evaluation of IPO Price: It is not necessary that if the company with a low IPO price has a cheaper valuation. It is advisable to compare the valuation of the company before making any investment decision.
Peer Comparison: One should compare the company with its peers in terms of revenue, profitability, growth, etc.
Objective of Fund Raising: One must find out why the company is raising money through an IPO, and the purpose of fund raising includes business expansion, working capital requirements, etc.

Conclusion

The Public Offering Price is an important part of any public issue by the company. It informs investors of the price at which shares are being offered to them. The public offering price gives you an idea about the company’s valuation and its future growth prospects. Various factors determine the public offering price, including its revenue, business model, etc. Before applying for an IPO, along with the public offering price, one must check other factors such as the objective of the issue, etc., as they can significantly impact the company’s performance. It is advisable to consult your investment advisor before making any investment decisions.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is IPO Lot Size?
2	How to Bid for an IPO in India
3	What Is Tax On IPO Profits In India
4	What is IPO Lock-In Period?
5	How to Bid for an IPO in India
6	How to Check IPO Allotment Status

Frequently Asked Questions (FAQs)

Is there any difference between the public offering price and the IPO price?
No, there is no difference between the public offering price and the IPO price. They are both considered the same and refer to the final price at which the shares are offered to the public for subscription.
What is a price band in an IPO?
A price band refers to the price range at which the shares are offered to the public for subscription. Investors can place their bid within this price range. This price band is generally followed in a book-building issue.
Does a low public offering price mean guaranteed profit?
No, investing only based on the public offering price does not guarantee profit. Investors should consider various factors such as market conditions, the company’s valuation, the financial performance of the company, the objective of the issue, etc., before applying for any IPO.
Who decides the public offering price in an IPO?
The public offering price in an IPO is decided by the company with the help of merchant bankers and other market intermediaries by evaluating the company’s valuation, investors’ sentiments, market conditions, etc.
What is the Public Offering Price?
The Public Offering Price is the price at which the shares of a company are offered to the public for subscription through a public issue or IPO. It is the price that an investor needs to pay for the shares allotted to them before the company starts trading on the exchange.

September 8, 2026

Underpriced IPO: Meaning, Formula, Reasons & Examples

What if you sell out a product for ₹100, but the buyers are willing to pay ₹150 just minutes later? Sounds like a bad deal, doesn’t it?

However, this can happen in the stock market with an underpriced IPO. When a company goes public, it offers a price for its stock, but if its stock rises quickly after its listing, it means that investors were willing to pay more than the initial price.

This paradox between IPO price and market price is referred to as IPO underpricing, which has long been a mystery to investors and researchers. But why does it happen, and why would a company knowingly leave money on the table?

What is an Underpriced IPO?

An IPO is underpriced when the shares sold to investors are at a price lower than what the market is willing to pay once trading opens.

Say a company sells shares at ₹300 in the IPO, and the stock opens at ₹450 on listing day. That ₹150 gap is the value that went to the investors who applied, instead of into the company’s own pocket.

From the company’s side, this can hurt a little. They could have priced the issue higher and raised more capital for the same number of shares.

Underpricing is not the same as an IPO simply doing well after listing. A stock can be underpriced on day one of listing and still crash a month later once the excitement settles down.

Formula:

The IPO underpricing formula is as follows

Underpricing % = (Closing Price on Listing Day – Issue Price) / Issue Price * 100

Example:

A company prices its IPO at ₹500 a share, and by the end of listing day, the stock closes at ₹650.

Underpricing % = (650 – 500) / 500 * 100 = 30%

That IPO was underpriced by 30%.

Reasons for Underpricing IPO

Information Asymmetry: The company and its merchant bankers know more about the business than the investors being asked to put money in. To close that gap, issuers usually price shares a bit lower than they could, a kind of discount for the risk investors are taking.
Fear of Weak Market Debut: Merchant bankers managing the IPO really do not want the issue to flop. A poor listing, where the stock falls below its issue price, makes headlines and affects the banker’s reputation for future deals. So there is a natural way to price it a bit lower than its real worth, just to give it some space for a good listing.
Future Fundraising: Companies that plan to raise more capital later, through an FPO or a QIP, benefit from a strong debut. A stock that gains on day one earns goodwill with investors, and that goodwill matters a lot when the company comes to ask for more money in the future.
Retail Investor Sentiments: This matters more in India than people think. IPOs gain a lot of hype from social media, and because of how easy UPI has made applying. When that demand builds fast, the price that was decided weeks earlier can end up looking too low by the time listing day comes.

Why Does Underpricing Happen Despite Book-Building?

As we know that the companies use one of two main ways to sell the shares:

Book Building
Fixed Price Method

Most big IPOs in India today do not use a fixed price anymore. They go through book-building. The company and its bankers set a price band, say ₹300 to ₹320, and investors bid somewhere in that range. Once bidding closes, the final price gets fixed based on where demand was strongest.

You will think this should more or less solve the underpricing problem, since the price is being shaped by real demand instead of a guess made months earlier, and it does help to an extent.

However, the price band itself gets locked in before bidding even opens, based on valuation work done weeks in advance. If sentiment shifts sharply after that, say a sector suddenly gets in momentum, or the grey market premium picks up in the final days, the book-building process does not always catch up in time.

So even with a more demand-driven system in place, that gap between the band and the actual mood on listing day is still where a lot of underpricing comes from.

Should Investors Chase Underpriced IPO?

As an investor, a few things that you should check before applying are as follows;

Subscription numbers: A high overall subscription count looks good on the surface, but check where the demand actually came from. Retail and NII portions filling up fast do not mean much on their own.
QIB demand: Institutional investors do far deeper diligence before bidding, so strong QIB subscription often points to genuine undervaluation rather than just hype.
Anchor investor names: Big, well-known institutional names in the anchor book can be a reassuring sign, though it is not a guarantee of listing gains by themselves.
Grey market premium: GMP can be useful as a rough directional indicator, but it is unofficial and unregulated. SEBI does not endorse it, and it is wrong often enough that it should not be anyone’s main basis for applying.
Company fundamentals: Revenue growth, debt levels, and how the business compares to listed peers matter a lot. Platforms like Pocketful, along with Groww and Zerodha, now make this kind of research far easier than it used to be.

Examples of Underpriced IPO

S. No	Company	Year	IPO Issue Price	Listing Price	Listing Gain
1	Sigachi Industries	2021	₹163	₹575	252.70%
2	Paras Defence & Space Technologies	2021	₹175	₹475	171.40%
3	Latent View Analytics	2021	₹197	₹530	169.00%
4	IRCTC	2019	₹320	₹644	101.20%
5	Bajaj Housing Finance	2024	₹70	₹150	114.30%

Underpricing vs. Overpricing

IRCTC and Sigachi make underpricing look almost like a given, but that is not always how it goes. Take Paytm’s 2021 listing, which was priced at ₹2,150 a share, and the stock opened below that and kept falling through the day. That is the opposite of underpricing, called overpricing, where the issue price turns out to be higher than what the market was ready to pay.

The same market, the same year even, produced a 101% gain for IRCTC and a loss for Paytm investors on day one.

Company fundamentals, sector mood, and how much hype built up before listing all pull in different directions, and there is no formula that tells you in advance which way it will go.

Conclusion

IPO underpricing is an interesting part of the stock market because it can make investors earn a big profit even on the first day of listing. As we have seen from several Indian IPOs, some stocks have listed much higher than their issue price, showing that investors were willing to pay more than the price set by the company.

But a strong listing gain does not always mean that the company is a great investment. The price can be influenced by demand, investor excitement, and market sentiment. So, while an underpriced IPO can look like an easy opportunity to make money, investors should also look at the company’s business, financial performance, and future growth before investing.

In the end, IPO underpricing shows that there is often a big difference between the price a company sets and what the market is willing to pay.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	How to Sell IPO Shares on Listing Day or Later
2	10 Common IPO Investing Mistakes to Avoid Before Applying
3	What is Basis of Allotment in IPO?
4	What is Face What is the IPO Cycle
5	What is NII in IPO?

Frequently Asked Questions (FAQs)

What is the definition of an underpriced IPO?
IPO underpricing happens when a company sets its IPO price lower than the price investors are willing to pay once the shares start trading.
How to know whether an IPO is underpriced?
When the stock price is considerably higher than the IPO issue price, it may mean the IPO was underpriced.
Why do companies underprice their IPOs?
Companies may choose to keep the price lower to draw in investors and ensure the IPO receives a good response.
Does a high listing gain mean that the company is undervalued?
Not necessarily. Demand and investor excitement can also contribute to a high listing gain.
Does India have a history of underpricing its IPOs?
Yes, IPO underpricing has happened in a few IPOs in India, especially during periods of high market demand.

September 5, 2026

Pre-IPO vs IPO Investing: Key Differences

If you have ever invested in an IPO, you have probably come across someone talking about buying shares before they even list.

Pre-IPO investing is gaining a lot of traction these days. At the same time, good old IPO investing has not lost its charm either. Every other day, a fresh IPO opens for subscription, and Indian retail investors continue to apply in huge numbers, hoping for listing gains.

We will break down both concepts in simple and easy language without any jargon.

What is IPO Investing?

An IPO, Initial Public Offering, is the formal route a private company takes to become publicly listed. The company opens a window, usually for about three working days, where investors can apply for shares at a price band.

If the shares are allotted to you, they are credited to your demat account, and once the stock is listed on the NSE or BSE, you can sell whenever you want to.

For most Indian retail investors, this is the more familiar territory. You have likely applied for at least one IPO through your broker, whether through Pocketful or any other platform, using UPI-based ASBA.

How does IPO Investing work?

IPO investing follows a much more defined, SEBI-regulated path.

The company submits a Draft Red Herring Prospectus (DRHP) to SEBI that includes all the details: the company’s financials, its business model, its reasons for going out for capital, and any potential risks.

Once SEBI reviews and approves this, the company submits an updated version, the RHP, including the final price band, the size of the issue, and key dates for bidding and listing.

The IPO then opens for subscription, usually for about three working days. During this window, you can apply through your broker, Pocketful, for instance, using UPI-based ASBA, where your funds get blocked but only debited if you receive an allotment.

Once the subscription period closes, shares are allotted if you are one of the lucky ones; they are credited to your demat account before the listing date. From there, the company starts trading on NSE, BSE, or both, and you can hold or sell at whatever price the market is offering that day.

Pre-IPO Investing – An Overview

It means buying shares of a company that has not been listed on the stock exchange yet. These are called unlisted shares, and they usually come from people who already hold them, like employees with ESOPs, founders, or private equity investors.

Until a few years back, this aspect of IPOs was basically closed off to regular investors. Now, with several platforms dealing specifically in unlisted shares, retail investors can also buy.

However, you should remember that there is no SEBI oversight here in the way there is for listed shares. No investor grievance redressal system built in, no standardised pricing, nothing forcing sellers to disclose information the way a company filing for an IPO has to.

How does Pre-IPO Investing work?

The process is simple once you understand the steps. You select a platform that deals in unlisted shares

Once you have shortlisted a stock you are interested in, you will make an enquiry with the platform, and they will get back to you with the price they are offering and how many shares are available.

Since there is no exchange deciding the price here, it is more of a negotiation than a fixed rate. You agree on a price, make the payment, and the shares are credited to your demat account within a couple of working days.

You hold onto the shares until the company decides to go public, for which there is no fixed timeline

Even after the company finally lists on the NSE or BSE, you are usually not allowed to sell. Most pre-IPO shares come with a lock-in period.

The Table of Difference: Pre IPO vs. IPO Investing

Parameter	Pre-IPO Investing	IPO Investing
Pricing	Negotiated between buyer and seller; no fixed band, so you could easily overpay without realising it	Fixed price band announced publicly ahead of time; everyone pays within the same range
Liquidity	Low: no active exchange, so exit is depends on finding another buyer, which can take time	High: once listed, shares trade freely on NSE/BSE during market hours
Regulation	No SEBI oversight; you are relying on your own due diligence and whatever the seller or platform discloses	Heavily regulated by SEBI, companies must disclose financials in their DRHP, risks, and business details before raising money publicly
Certainty of listing	No guarantee. The company may delay, downsize, or shelve its IPO plans altogether	The listing date is known and fixed once the subscription window closes
Minimum investment	Varies by platform	Generally ranges from ₹15,000 for one retail lot

Reasons People are attracted to Pre-IPO Investing

Getting in before the crowd does: There is something appealing about buying into a company before it is even on the exchange. If the pricing works out in your favour and the IPO lists at a premium, you are already on gains before the stock opens for trading on day one.
Access to businesses you cannot reach otherwise: Mutual funds, index funds, regular stock picks, none of that gets you into a company that is not listed yet. Pre-IPO investing opens up a slice of the market that’s simply unavailable through any conventional route,
The story behind the company: A lot of pre-IPO buyers are not just chasing returns; they believe in what the business is building. Maybe it is a company they have followed for years, or one operating in a sector they understand well. Getting in early feels like backing that conviction.

Are Pre-IPO & Unlisted Shares the same thing?

No. There is a slight difference in how they are used.

Unlisted shares are the broader term, and it covers any share of a company that is not trading on the NSE or BSE. That includes long-standing private companies that may never go public, government-owned entities that trade in the unlisted space, and, yes, companies that are eventually headed for an IPO.

Pre-IPO, on the other hand, is when you buy pre-IPO shares; you are buying unlisted shares of a company that is expected to list at some point. Maybe it has already filed paperwork with SEBI.

So every pre-IPO share is an unlisted share, but not every unlisted share is a pre-IPO one.

Taxation: Pre IPO vs IPO Investments

For pre-IPO or unlisted stocks, if you sell them within 24 months from the date of purchase, then the gains are treated as income and taxed at your income tax slab rate. After 24 months, it is subject to long-term capital gains tax at 12.5% without indexation.

For IPOs, STCG refers to the capital gains made within a period of 12 months from the listing date and is taxed at 20%, while LTCG refers to capital gains made after 12 months, which is taxed at 12.5% with an exemption of gains up to ₹1.25 lakh per year.

Which one should you choose?

There is no one-size-fits-all answer, and anyone who tells you otherwise is oversimplifying.

Pre-IPO investing is more useful if you already have surplus money that you do not need for a while, you are comfortable with the idea that your capital might be locked in longer than planned, and you have done the research well on the specific company rather than just chasing a name.

IPO investing will make more sense if liquidity is important to you, if you want regulatory disclosures, or if you are working with a smaller amount.

If you’re someone who trades or invests actively and wants to keep an eye on upcoming IPOs, applying through a platform like Pocketful makes the process easy.

Conclusion

Neither pre-IPO nor IPO investing is the smarter choice. They are just meant for different kinds of investors with different priorities.

If you like the idea of early access and can tolerate illiquidity and uncertainty, pre-IPO might fascinate you. If you would rather stick to a regulated, transparent process with clear exit options, IPO investing is likely the better fit. Invest in IPOs with Pocketful and enjoy zero brokerage on delivery trades, along with detailed IPO analysis to help you understand the opportunity, assess the risks, and make investment decisions with greater confidence.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Anchor Investors in IPOs – Meaning, Role & Benefits
2	How to Cancel an IPO Application?
3	Key Difference Between IPO and FPO
4	What is Face What is the IPO Cycle
5	What is NII in IPO?

Frequently Asked Questions (FAQs)

Is pre-IPO investing legal in India?
Yes. There is just no SEBI regulation covering the unlisted shares market the way there is for listed stocks.
Can I sell pre-IPO shares immediately after the company lists?
Usually not. Most pre-IPO shares come with a lock-in period of around six months post-listing.
What happens if a company never files for an IPO?
Your shares stay unlisted indefinitely, and you would need to find a private buyer if you want to exit.
Are IPO listing gains guaranteed?
No. Some IPOs list above the issue price, but others list flat or even below it. It depends on market sentiment at the time.
Can retail investors access pre-IPO shares now?
Yes, this has changed a lot in recent years. What used to be limited to HNIs and institutions is now accessible to regular investors.

August 30, 2026

What is Basis of Allotment in IPO?

If you’ve ever applied for a hot IPO and then spent the next few days refreshing the registrar’s website every couple of hours, you already know the feeling this article is about. There’s a strange mix of hope and dread that kicks in once the subscription window closes: did you get the shares, or is your money about to bounce back into your account? That outcome comes down to something called the basis of allotment, and it’s worth actually understanding rather than just waiting on.

This piece walks through what the basis of allotment means, who decides it, how the whole IPO allotment process plays out, and how you can actually apply for an IPO on the platform.

What Does Basis of Allotment Mean?

In a nutshell, the basis of allotment (BoA) is the rulebook that decides who gets a piece of the action in an IPO and how many shares they get. And here’s the thing – it’s not a decision made by the company; it’s a very specific, SEBI-regulated process that the registrar to the issue follows to the letter, with the stock exchange (NSE or BSE) giving the final okay.

Now, if not too many people are applying for shares – and they usually aren’t – life is simple: everyone gets what they asked for. But things get really interesting when an IPO takes off, and thousands of people are scrambling to get in on the action. That’s when the company has to have some solid, fullproof system in place to figure out who actually gets the shares. And that’s exactly what the BoA document is all about.

You’ll usually see this document show up a few days after the IPO closes, broken down by the type of investor, showing in detail how the demand stacked up against the available shares and how the shares were eventually divided up.

Why Is the Basis of Allotment Important in an IPO?

For one, it’s what keeps the process honest. When a retail portion gets oversubscribed 30 or 40 times, there’s always a lingering worry that bigger applicants somehow get an edge. Because the allotment is computerised and overseen by the exchange, that worry mostly goes away.

It also gives investors an idea of their allotment chances. For example, if the retail category is oversubscribed 25 times, the probability of receiving shares is relatively low.

There’s a money angle too. Until the allotment is out, your funds sit blocked through ASBA or a UPI mandate. The BoA is what tells you whether that money turns into shares or gets released back to you, which matters if you were planning to redeploy it elsewhere.

And sometimes, it’s simply diagnostic. If your application got rejected, it’s not always about oversubscription; a mismatched PAN or an incorrect DP ID can knock you out too. Checking the allotment status (and understanding why you didn’t make the cut) can save you from repeating the same mistake next time.

Who Actually Decides the Basis of Allotment?

Not the company that’s a common misconception. The job falls to the Registrar to the Issue, a SEBI-registered intermediary (names like Link Intime, KFin Technologies, and Bigshare Services come up often), working alongside the exchange where the company is listed.

Roughly, this is how it plays out:

The registrar first goes through every application received during the subscription period, checking PAN details, demat account information, and whether payments or UPI mandates actually came through. Anything invalid or duplicated gets filtered out at this stage. Based on the final validated numbers in each category, the registrar then works out the allotment by lottery for retail investors if oversubscribed, and a proportionate split for NII and QIB categories. The exchange reviews this before it’s made official, and only then does the basis of allotment get published.

This two-layer check registrar plus exchange is really what gives the process its credibility. It’s not left to the company’s discretion at any point.

Read Also: What is the IPO Allotment Process?

How the Allotment Process Plays Out

The approach changes depending on whether the issue is oversubscribed and which category you fall under. If the IPO is undersubscribed, nothing tricky here. Every valid applicant gets exactly what they applied for.

If the IPO is oversubscribed, things split by category:

Retail Individual Investors (RIIs): Since most retail applicants go for a lot or two, a computerised lottery decides who gets in. The idea is to spread allotments across as many people as possible rather than favour those who applied for more so a bigger application doesn’t really improve your odds within the retail cap.
Non-Institutional Investors (NIIs/HNIs): This is where proportionate allotment kicks in. If the NII segment is oversubscribed 8 times, someone who applied for ₹8 lakh worth of shares would typically end up with around ₹1 lakh worth scaled down in proportion to the oversubscription.
Qualified Institutional Buyers (QIBs): Same proportionate logic applies here, no lottery involved, since this category is made up of mutual funds, banks, and foreign portfolio investors applying in bulk.

The Math Behind Proportionate Allotment

For categories that follow the proportionate route, the formula the registrar uses is fairly straightforward:

Allotment Ratio = Shares Available in the Category ÷ Total Shares Applied For in that Category

Shares Allotted = Shares Applied For × Allotment Ratio

So if a category has 1 lakh shares reserved and applications come in for 12 lakh shares, the ratio works out to roughly 1:12 each applicant gets about a twelfth of what they applied for, adjusted for minimum lot rules.

How the Allotment Splits Across Investor Types

SEBI sets aside specific portions of every IPO for different kinds of investors:

Retail Individual Investors: typically get a minimum of 35% of the net offer, for anyone applying up to ₹2 lakh. Bidding at the cut-off price is a smart move here; it keeps your bid valid regardless of where the final price lands within the band.

Non-Institutional Investors (NII): get a minimum of 15%, further split into smaller NIIs (₹2 lakh to ₹10 lakh) and bigger NIIs (above ₹10 lakh), each with its own slice of the quota.

Qualified Institutional Buyers (QIB): can get up to 50% of the net offer, with a portion carved out specifically for mutual funds.

Worth knowing: if one category doesn’t get fully subscribed, the leftover shares can be reallocated to categories that are oversubscribed, and occasionally, that ends up benefiting retail applicants.

When Does the Basis of Allotment Come Out?

IPO timelines have tightened up quite a bit over the last few years. Here’s roughly how it plays out now:

Closing Day (T-Day): Subscription window shuts.
T+1: Registrar validates applications, rejects the technically invalid ones, and works out the allotment numbers.
T+2: Basis of allotment is published, and refunds for unsuccessful applicants start moving.
T+3: Shares land in demat accounts, and the stock usually lists shortly after.

These timelines can shift slightly issue to issue, so it’s worth checking the specific dates for whichever IPO you’ve applied to rather than assuming they’ll always match exactly.

How to Check Your IPO Allotment Status

A few reliable ways to check, rather than sitting around waiting for an email:

Registrar’s website: All IPO has a registrar attached to it. Visit their portal, choose the IPO name and search with your PAN, application number or DP/Client ID.
NSE or BSE websites: You can check allotment status in both exchanges; just select the IPO and enter your PAN and application number.
Your broker’s app: most trading platforms, Pocketful included, let you check your allotment status right within the app, so you don’t have to rely between websites.

Keep your PAN, application number, and DP ID within reach; most portals will ask for at least one of these.

Read Also: How to Check IPO Allotment Status

How to Apply for an IPO Through Pocketful

If you’re applying through Pocketful, the process is designed to be quick and mostly happens within the app itself:

Log in to your Pocketful account. Make sure your demat and trading account are active, and that your bank account is linked for UPI-based payments.
Head to the IPO section. You’ll find a list of currently open IPOs along with key details: price band, lot size, issue dates, and category-wise subscription status.
Select the IPO you want to apply for. Tap on it to view more details, including the company’s financials and the offer structure, before deciding how much you want to bid.
Enter your bid details. Choose the number of lots, and either select a specific price within the band or go with the cut-off price (usually the safer choice, since it keeps your bid valid no matter where the final price settles).
Enter your UPI ID. This is the ID linked to your bank account, and it’s what Pocketful uses to raise the mandate request for blocking your application amount.
Approve the UPI mandate. You’ll get a notification on your UPI app (Google Pay, PhonePe, or whichever app you use); approve it before the deadline. This step trips people up more often than you’d expect, so don’t let it sit unapproved.
Track your application. Once submitted, you can check your application status and, later, your allotment status directly from the IPO section in the app.
Check allotment and next steps. Once the basis of allotment is out, Pocketful will show you whether you’ve been allotted shares. If you have, they’ll be credited to your demat account before listing; if not, the blocked amount gets released back automatically.

The whole point of applying through a broker like Pocketful is that it collapses a fairly process bidding, mandate approval, and tracking into a few taps, without you needing to visit the registrar’s site at every step.

Common Reasons Investors Don’t Get an Allotment

Even in a fair system, a lot of applicants walk away empty-handed. Usually it comes down to one of these:

Heavy oversubscription: the most common reason by far. More applicants than lots simply means the lottery won’t favour everyone.
Duplicate applications on the same PAN: SEBI allows only one application per PAN. Applying twice, even through different brokers, gets you rejected.
Incorrect details: a mismatched PAN, DP ID, or bank account can invalidate an otherwise fine application.
UPI mandate or payment issues: forgetting to approve the mandate in time, or not having sufficient balance blocked, is a surprisingly frequent slip-up.
Bidding below the cut-off price: if your bid price ends up lower than the final issue price, it won’t be considered valid.
Same UPI ID across multiple family applications: a lot of people try to apply through several family members’ accounts but use one UPI ID for all of them, which gets flagged.

A Few Ways to Improve Your Odds

Applying for a spot in a super popular retail category is always a bit of a crapshoot, but there are some habits you can get into that might just give you a bit of an edge and make you less likely to get knocked out on a technicality at the very last minute

Instead of making one big application with all your eligible family members on the same account, try applying through multiple eligible family accounts, each with their own PAN and UPI ID. That way you spread your bets and aren’t putting all your eggs in one basket
In the retail category, it’s actually better to apply for single lots in different accounts rather than putting in one big application with multiple lots – the way the lottery is set up, it treats each application pretty much equally, so by breaking it down into smaller applications you stand a better chance of getting some through
Play it safe by sticking to the cut-off price, so you don’t run the risk of your bid being rejected because it’s too high.
Get your application in early rather than waiting till the last minute so you have time to sort out any payment issues that might come up.
Double-check – and then double-check again – your PAN, DP ID, and bank details before you hit submit
If you qualify for one of the shareholder or employee quotas, use that – the odds are always much better in those pools than they are in the general public pool

Wrapping Up

The basis of allotment is not fine print, it is the moment you know whether your IPO application turned into shares or refund. Once you understand how the registrar and exchange work together, how the lottery and proportionate methods differ in various categories and the typical problems with applications, the whole thing seems much less of a black box. The application process with Pocketful takes only a few minutes, and the waiting begins after you click submit.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is IPO Lot Size?
2	How to Cancel an IPO Application?
3	What Is a Hot IPO?
4	What is Face What is the IPO Cycle
5	What is NII in IPO?

Frequently Asked Questions (FAQs)

What is the deal with allotment in an initial public offering?
The allotment situation in an IPO is decided by the method used to sort out who gets how many shares. The registrar in charge of the IPO gets to decide this, and the stock exchange has to give it the thumbs up to make sure its all fair and square.
Who actually puts the allotment plan together?
The allotment plan is put together by the registrar company itself, like KFin Technologies, Link Intime, or Bigshare Services, and then gets a once-over by the relevant stock exchange before they publish it.
When do the IPO allotments come out?
As a rule of thumb, the basis of allotment is usually announced a couple of working days after the IPO closes for business. At that point you can go check and see if you got any shares.
What happens if I don’t end up getting any shares?
If you don’t get an allotment, then the money that was blocked from your bank just gets released back into your account; no need to do anything else.
Does sending in multiple applications for more shares increase my chances of getting an allotment?
Generally for individual investors, sending in multiple applications for more shares won’t improve your chances of getting an allotment in an oversubscribed IPO. What’s more, most retail allotments are decided by an automated lottery system for all eligible individual applications.

August 12, 2026

How to Sell IPO Shares on Listing Day or Later

You applied for an IPO, got the allotment, and now the shares are in your demat account, but here is where a lot of first-time investors get stuck since nobody tells them what happens next.

Do you sell on the listing day itself? Should you wait a few days? What if the stock is trading in the upper circuit and you cannot even place a sell order?

Whether you are planning to book listing-day gains or hold on for a bit longer, below is everything you need to know about selling your IPO shares after they are listed.

Check if Your IPO Shares Are in Your Demat Account

Check if your shares have been credited:

Before you even think about selling, make sure the shares are visible in your demat account. Allotment and crediting are two different things. You could get an allotment confirmation on the registrar’s website (like Link Intime or KFin Technologies) a day or two before the shares are credited to your account.

You can log into your demat account and check the holdings section.

How Is the IPO Listing Price Determined?

Listing day is when the stock starts trading on the exchange for the first time.

The opening price is not decided by the usual continuous trading mechanism. It goes through something called a special pre-open session, which runs for about 60 minutes before regular trading starts.

During this window, buy and sell orders pile up, and the exchange uses an algorithm to figure out the equilibrium price (the price at which maximum shares can be matched).

Once that special session ends, the discovered price becomes the opening price, and regular trading starts.

How to Sell Your IPO Shares?

Log into your trading app. Open Pocketful or whichever broker you used for the IPO
Go to your holdings or portfolio section. You should see the newly listed stock there
Tap on the stock and select “Sell”
Choose your order type
Enter the quantity you want to sell
Review and confirm the order
Track the order status in your order book to see if it is executed

Market Order vs. Limit Order: What Should You Choose?

A Market order means you are telling the exchange “sell my shares at whatever the current price is.” It executes almost instantly, but you have zero control over the exact price you get. If the stock is swinging wildly in the first few minutes, you could end up selling lower than expected.

A Limit order means you set a specific price, and the order only executes if the stock hits that price. This gives you control, but there’s a risk it might not execute at all if the price never reaches your target.

Choose Market Order if you are someone who wants to book profits quickly. But if you have a specific price target in mind, a limit order will be more useful.

What if the Stock Hits Upper Circuit?

This is a common situation with IPOs that get listed with a strong premium. If demand exceeds supply on listing day, the stock can hit its upper circuit limit almost immediately.

If this happens, you can place a sell order, and it will execute almost instantly. An upper circuit indicates massive demand with a saturated queue of buyers, but zero sellers.

Because buyers are actively waiting for liquidity, your sell order will find an immediate match.

What if the Stock Lists Below the Issue Price?

Sometimes a stock lists at a discount, meaning it opens for trading below what you paid for it.

The first thing to do is to take a breath and not make a decision out of frustration. A discounted listing usually means the market felt the IPO was priced a bit aggressively. It does not automatically mean the company is a bad business.

If you only applied for listing gains, this is obviously not the outcome you wanted. In that case, you have two real choices: sell at a loss and move on, or hold and hope the price recovers over the next few weeks.

If you applied because you liked the company itself, a discounted listing should not change your thesis. So many strong businesses have listed weak and still performed well over the following year or two once the initial listing noise settled down.

Remember why you wanted to invest in the first place instead of reacting purely to the red number on day one.

Read Also: What is IPO Lock-In Period?

Should you sell on Listing Day or wait?

It depends on why you applied for the IPO in the first place.

If you applied purely for listing gains, meaning you were never planning to hold the stock long-term, just wanted to catch the FOMO, then selling on day one usually makes sense.

If you believe in the company’s fundamentals and applied because you wanted to be a long-term shareholder, then listing-day volatility should not influence your decision.

If you are not sure, a middle path a lot of investors follow is partial profit booking, i.e., selling half the allotted quantity on listing day to lock in some gains, and holding the rest to see how the stock performs over the next few weeks or months.

Tax Implications of Selling IPO Shares

If you sell your IPO shares within 12 months of allotment, the gains are treated as short-term capital gains (STCG) and taxed at 20%

If you hold beyond 12 months, it becomes long-term capital gains (LTCG), taxed at 12.5% on gains exceeding ₹1.25 lakh in a financial year.

Selling IPO Shares after Listing Day

If you decide not to sell on listing day, there is nothing complicated about selling later.

It works exactly like selling any other stock in your portfolio.

The main difference is that the stock is trading through the normal continuous market mechanism, so prices tend to be more stable compared to the volatility of listing day itself.

Points to Remember before you Sell

Do not rely on grey market premium (GMP) as gospel. GMP gives a rough sense of listing-day sentiment.
Watch the pre-open session price before deciding on your order type once regular trading begins.
Avoid placing orders in a rush based on social media or other people’s screenshots about guaranteed listing gains. Every IPO behaves differently.
Keep an eye on order execution charges and brokerage, especially if you are planning multiple partial sells across the day.
Set a mental exit price for yourself before the market opens, so you are not making decisions in the heat of the moment.

Conclusion

Selling IPO shares is not about knowing some secret trick, it is about being clear on your own goals before listing day. Are you in just because it is hyped, or are you backing the business for the long term? Once that is sorted, the mechanics of placing a sell order on any brokerage app is easy. Just remember to keep an eye on order types, circuit limits, and the taxation.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is IPO Lot Size?
2	How to Cancel an IPO Application?
3	Difference Between IPO and FPOIPO and its Benefits?
4	What is Face What is the IPO Cycle
5	What is NII in IPO?
6	What Is An IPO Mutual Fund? Should You Invest?
7	Why Invest in an IPO and its Benefits?
8	IPO Application Eligibility Criteria
9	What is IPO Valuation?
10	What Is a Hot IPO?

Frequently Asked Questions (FAQs)

How soon can I sell my IPO shares after listing?
The moment trading opens on listing day, you are free to sell. There is no lock-in for retail investors in a regular IPO.
What if I do not see my shares in my demat account on listing day?
Give it a few hours. Allotment and crediting are not always simultaneous, so a small delay in the morning is normal.
Is it better to sell during the pre-open session or after?
You cannot actually place trades during the special pre-open session, it is only used for price discovery. Once that 45-minute window closes and regular trading starts, your order gets executed.
Do I have to pay tax if I sell on listing day itself?
Yes. Since you would be holding for less than 12 months, it falls under short-term capital gains and is taxed at 20%.
Is GMP a reliable indicator of the actual listing price?
Not really. GMP gives a rough sentiment check, but listing prices can deviate from what the grey market suggested before listing.

August 5, 2026

10 Common IPO Investing Mistakes to Avoid Before Applying

Every IPO brings the same steps. A new issue opens, the subscription numbers start rising, and suddenly your cousin who has never opened a demat account in his life is asking you which IPO to apply for. There is something about IPOs that makes even otherwise-careful investors throw caution. Maybe it’s just FOMO dressed up as an investment strategy.

So many people who lose money or miss allotments in IPOs are not unlucky. They are making the same mistakes over and over, year after year, IPO after IPO.

Let us go through the common IPO investing mistakes that retail investors often make, which need to be avoided one by one, so you do not have to learn these lessons the expensive way.

1. Paying Attention to the Hype

You know the feeling. As soon as the IPO opens, subscription figures are flashing 50x, 60x, and somewhere in your head a voice says “everyone cannot be wrong, right?”

Subscription numbers tell you what the crowd is doing. They say nothing about whether the company’s financials are sound. Before applying, at least skim through the Red Herring Prospectus, specifically the risk factors and financial statements sections because companies are legally obligated to disclose things like pending litigations, promoter share pledges, and related-party dealings in there. 15 minutes with that document has saved more portfolios than any GMP website ever will.

2. Trusting GMP a Little Too Much

Grey Market Premium is considered like an official forecast, when it is just an unregulated number floating in an unofficial market that SEBI does not track or verify. It can shift by the hour based on rumour, sentiment, or a handful of large trades. Plenty of investors have applied for an IPO because the GMP looked attractive, only to watch it shrink, or vanish entirely, by the time listing day arrives.

Use GMP as one small data point if you want to, but never as the reason you are applying.

Usually GMP is most talked-about when hype is at its peak, which is when it is least reliable. By the time an issue closes for subscription, that number has often been inflated by traders operating in an unofficial market. None of this is necessarily illegal, but it is also not something SEBI backs or regulates in any way.

3. Not Checking the Valuations

Price bands always tell a story: huge addressable market, aggressive growth projections, first-mover advantage. All this sounds great. But growth potential is very low if you are paying 40 times earnings for a company whose already-listed competitors trade at 15 or 18 times.

A quick look at P/E ratios, EV/EBITDA multiples, and return ratios against listed peers in the same sector tells you far more than any investor presentation will.

This one step alone separates people who actually evaluate a business from people who are just riding a wave.

4. Applying in the Wrong Category

Retail investors, HNIs, and employees all fall under different allotment categories, and each works differently. Retail applications are capped at ₹2 lakh. If you even push a little over that without realising it, your application will slide into the HNI category, where the competition and allotment math are completely different and much tougher.

This mistake sounds stupid until it happens to you. Double-check your category before you hit submit.

5. Skipping the Anchor Investor List

A day before an IPO opens to the public, a chunk of shares gets allotted to anchor investors, big institutional players putting money in advance. Checking who these anchors are, how much they have committed, and at what price gives you an understanding of how informed money views the company.

If well-known domestic mutual funds or insurers are missing from that list, it is not necessarily a dealbreaker. Smart money does not always get it right, but it usually does more homework than the average retail applicant, and its presence or absence is public information available for anyone willing to look before applying blind.

6. Forgetting the Lock-in Period

There is a pattern that plays out again and again: a stock lists well, climbs for a few weeks, and then quietly starts sliding once the anchor investor lock-in period ends, which is usually 30, 90, or 180 days after listing. When those large blocks of shares are ready to sell, early investors often book profits, and that fresh supply puts pressure on the price.

Investors who bought on listing-day excitement frequently forget this and get blindsided a few months down the line when the stock corrects for reasons that have nothing to do with the company’s real performance.

7. Not Deciding Your Exit

“I will figure it out once it lists” sounds flexible, but it is just a decision to let emotion drive the brain later. Without a target price or a mental stop-loss set in advance, you are far more likely to either sell too early out of fear or hold on too long out of greed once the stock starts moving on debut.

Decide ahead of time whether you are in this for a quick listing-day gain or a longer-term hold tied to the company’s fundamentals. Placing a GTT order in advance, if your broker supports it, takes emotion out of the equation.

8. Locking Up Money You Might Actually Need

The ASBA mechanism blocks your funds the moment your application goes through, and they stay blocked until allotment or refund comes through, which can take several days. It is easy to get carried away applying for two or three IPOs at once without accounting for the fact that this money simply is not available to you during that window.

If an emergency comes up, or another investment opportunity appears, you might find yourself short on liquidity at that point in time. Only apply with money you are fine parking for a few days.

9. Not Paying Attention to the Broker You Are Applying Through

This one gets overlooked constantly, but it matters. A slow app, a delayed UPI mandate approval, or a confusing category selection screen can cost you an allotment, especially in high-demand IPOs where subscription can close within hours and every minute of delay counts.

A reliable, SEBI-registered broking platform makes a real difference here. Pocketful, for instance, keeps the IPO application simple, with a clean view of upcoming issues, GMP trends, and a UPI-based ASBA flow that doesn’t leave you guessing at the last minute.

10. Not Checking Whether It’s a Fresh Issue or Pure OFS

This is something a lot of people just don’t think about, but it probably should be one of the first things you look at. Every IPO is structured as either a fresh issue (new shares are created, and the money raised goes into the company itself for expansion, debt repayment, or working capital) or an Offer for Sale, or OFS (existing shareholders, usually promoters or early investors, are simply selling their stake, and the company doesn’t see a rupee of that money).

A lot of IPOs are a mix of both. If an IPO is almost entirely OFS, it basically means early investors and promoters are cashing out, and the company itself is not raising fresh capital for growth.

You will find this split clearly mentioned in the RHP, along with exactly how the fresh issue proceeds are planned to be used. It takes about two minutes to check.

Conclusion

At the end of the day, it just requires slowing down for twenty or thirty minutes before you apply, instead of clicking submit as soon as an IPO opens.

India’s IPO market has grown on a large scale over the last few years, with SEBI tightening disclosure rules and eliminating nonsense that used to fool a lot of first-timers. But better regulation only protects you so much.

Read before you apply. Compare before you believe the hype. Decide your exit before emotions are involved. Do this consistently across a few IPO cycles, and you will notice you are making better decisions than the person applying purely on a WhatsApp forward.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is IPO Lot Size?
2	How to Bid for an IPO in India
3	What Is Tax On IPO Profits In India
4	What is IPO Lock-In Period?
5	How to Bid for an IPO in India
6	How to Check IPO Allotment Status

Frequently Asked Questions (FAQs)

Is it safe to apply for an IPO based only on GMP?
No. GMP is an unofficial number from an unregulated market, and it can swing sharply right before listing. Use it as one small signal and not the main reason to apply.
What happens if I do not get allotted shares in an IPO?
Your blocked funds are simply released back to you within a few working days.
Can I apply for the same IPO from multiple demat accounts?
Yes, but each application needs to be under a different PAN.
Are IPO listing gains guaranteed?
No. Listing performance depends on market conditions, sector sentiment, and valuation at the time, not just demand during subscription.
How can I check who the anchor investors are in an IPO?
It is published as a public disclosure, and is usually available on the exchange website (NSE/BSE).

August 4, 2026

What is IPO Lot Size?

Imagine walking into a wholesale store to buy one packet of biscuits, only to find they are sold strictly in bulk boxes. The stock market follows a very similar rule when a fresh company steps in to raise funds from the public. Instead of letting people purchase a single share, the company groups them into fixed bundles. Anyone looking to invest must buy these complete bundles. Grasping this basic concept is a big step for anyone wanting to explore the stock market. It makes planning your budget much easier and helps you invest with absolute confidence. Let us dive into how this bundling system works and why it matters for everyday investors.

What is IPO Lot Size Means

To put it in simple words, an ipo lot size is the fixed minimum number of shares you must apply for when bidding. When a company lists on the stock exchange, it does not sell shares one by one, but groups them into fixed packets. This specific packet is called a lot.

If you are wondering what is lot size in ipo, let us look at a quick example. If a company sets its lot size in ipo at 100 shares, you can only buy shares in multiples of 100. You can easily apply for 100 shares, 200 shares, or 300 shares, but you cannot apply for 150 shares.

The minimum lot size in ipo is the smallest number of shares you can buy to join the bidding. You cannot apply for anything less than this limit. If you are thinking about how many lots can be applied in ipo, the answer depends on your investor category and specific offer rules.

Why IPO Lot Size Matters

Understanding this concept is highly helpful for every investor. Here are five main reasons why this system is important for you:

Standardises the application process: It makes the bidding process very simple and clean. Stock exchanges can process thousands of applications quickly when everyone bids in uniform packets.
Determines your minimum budget: Before you apply, you can exactly calculate the money you need. This helps you keep the right amount ready in your bank account.
Ensures fair share distribution: When demand is high, the registrar uses these lots for fair distribution. They use a computerized lottery to give shares equally among applicants.
Categorises different types of investors: This method helps the regulatory system separate small retail investors from wealthy individuals and large institutions.
Prevents market monopoly: By limiting maximum application sizes, the system ensures fairness. It stops a few wealthy buyers from taking all the shares of a good company.

Minimum Vs Maximum Lot Size

Now, let us look at the difference between the minimum and maximum limits. The minimum limit is the smallest packet of shares you must bid for. For retail investors, this is always exactly one lot, and you cannot bid for random numbers.

On the other hand, the maximum limit is the highest number of shares you can apply for. For retail investors in India, the total bidding amount is capped at two lakh rupees. Therefore, your maximum limit in terms of lots depends on the cost of one lot.

For instance, if one lot costs fifteen thousand rupees, you can bid for a maximum of thirteen lots. This keeps you safely within the retail category. If you apply for more, you will be shifted to a different investor group.

How Lot Size is Decided in an IPO

The number of shares in a single packet is not chosen randomly. The company and its financial advisors decide it together based on several important factors:

SEBI rules: The regulatory body ensures the minimum investment value stays in a reasonable range. This range is usually between ten thousand and fifteen thousand rupees for mainboard offers.
Price of a single share: If the share price is very high, the packet size is kept small. For example, if a share costs one thousand rupees, the lot size may be fifteen shares. If the share is fifty rupees, the packet size will be much larger.
Total number of shares offered: The company considers how many total shares it wants to issue. This depends largely on their required funding goals.
Type of the offer: Mainboard offers have different budget requirements than small and medium enterprise offers. Small business offers usually have much higher limits for investors.
Expected investor demand: The company studies the current market environment carefully. They check how much interest regular investors might have in their business.

Read Also: How to Bid for an IPO in India

How to Calculate Minimum Investment in IPO

Calculating the minimum amount you need to invest is very easy. You do not need any complex tools to do this. The simple formula is multiplying the number of shares in one lot by the upper price band of the share.

Why do we use the upper price band? When you apply for a public offer, you usually bid at the highest price. The banking system then blocks the maximum possible amount from your bank account.

If the final price is decided at a lower rate, the extra money comes back. It is credited back to your bank account after the allotment process.

For example, let us say the share price range is ninety five to one hundred rupees. The packet size is one hundred and fifty shares. Your calculation will be 150 shares multiplied by 100 rupees.

This gives you fifteen thousand rupees. This is the exact minimum amount you must have in your account to submit one bid.

Lot Size for Different Type of Investors

Different groups of investors have different rules when bidding for a public offer. The market regulator defines clear boundaries for everyone. Here is a clear comparison to help you understand the limits for each category:

Investor Category	Definition	Investment Limit	Allotment Method
Retail Individual Investors	Regular, everyday investors like you and me.	Up to ₹2,00,000 maximum.	Computerized lottery system.
Small Non-Institutional Investors	Wealthy individuals applying for a larger share volume.	Between ₹2,00,000 and ₹10,00,000.	Lottery based proportional allotment.
Big Non-Institutional Investors	Corporate bodies and very wealthy individuals.	Above ₹10,00,000 with no upper limit.	Lottery based proportional allotment.
Qualified Institutional Buyers	Professional institutions like mutual funds and insurance companies.	Huge amounts, often in crores, with no upper cap.	Proportional allotment based on total bids.

As a retail investor, you must bid for at least one lot. This typically costs between ten thousand and fifteen thousand rupees. Non institutional investors have a higher entry point.

Their minimum bidding size starts from the number of lots that cost just above two lakh rupees. Qualified institutional buyers bid in huge amounts with no upper caps.

Current Example of Lot Size from Recent IPO

Let us look at a real world example to make this highly clear. A very recent mainboard public offer in the Indian market is Xtranet Technologies Limited. This offer opened for bidding in late July 2026.

The company set its share price range between 120 rupees and 127 rupees per share. The packet size for this public offer was fixed at 110 shares.

IPO Details	Value
Company Name	Xtranet Technologies Limited
Price Band	₹120 to ₹127 per share
Lot Size	110 shares
Minimum Investment (1 Lot)	₹13,970 (110 shares * ₹127)
Maximum Retail Investment (14 Lots)	₹1,95,580 (1,540 shares)

If you wanted to apply for this public offer as a retail investor, your minimum bidding quantity was one lot. The minimum investment amount was calculated at the upper price of 127 rupees. This means you needed exactly 13,970 rupees blocked in your bank account to submit a single bid.

Read Also: What is Lot size in F&O ?

Conclusion

Applying for a public offer can be an exciting way to start your journey in the stock market. Knowing about share packets helps you manage your savings better. It also allows you to apply for bids with great confidence.Platforms like Pocketful make this entire process highly simple and tension free for you. With zero account opening fees and a very friendly interface, you can apply for public offers easily on Pocketful.

Whether you want to explore new businesses or build a long term portfolio, having the right knowledge is the best way to move forward. Keep learning and enjoy a positive investing journey.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Anchor Investors in IPOs – Meaning, Role & Benefits
2	How to Cancel an IPO Application?
3	Why Invest in anKey Difference Between IPO and FPOIPO and its Benefits?
4	What is Face What is the IPO Cycle
5	What is NII in IPO?
6	What Is An IPO Mutual Fund? Should You Invest?
7	Why Invest in an IPO and its Benefits?
8	IPO Application Eligibility Criteria
9	What is IPO Valuation?
10	What Is a Hot IPO?

Frequently Asked Questions (FAQs)

Can you buy less than one lot in an IPO?
No. You must apply for at least the minimum lot size. Buying single shares is not allowed.
Does applying for more lots guarantee allotment?
No. If an issue is oversubscribed, a lottery is used. Every retail applicant gets an equal chance to receive one lot.
How do you apply for an IPO?
You can easily apply online using your UPI ID through investing platforms like the Pocketful app.
Is the lot size same for all IPOs?
No. It varies for every company based on its share price and SEBI guidelines.
When is the blocked money released?
If you do not get an allotment, the blocked funds return to your bank account within a few days

July 23, 2026

SBI Funds Management IPO Allotment Status: Check Latest GMP, Steps to Verify Status

SBI Funds Management, one of India’s leading asset management companies, is launching an initial public offering (IPO) to raise up to ₹9,812.91 crore. The issue opens for subscription on July 14, 2026, and will close on July 16, 2026, with a price band fixed at ₹545 to ₹574 per share. Since the IPO is entirely an offer for sale (OFS), the company will not receive any proceeds from the issue. The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 21, 2026, subject to allotment and necessary regulatory approvals.

SBI Funds Management IPO Day 3 Subscription Status

On Day 3, SBI Funds Management. IPO witnessed a strong investor turnout, closing with an overall subscription of 41.72 times. The QIB category led the demand approx 140.11 times, The Non-Institutional Investors 22.50 times subscription Overall, indicating good participation. Among Non-Institutional Investors (NII), the bNII (above ₹10 lakh) portion was subscribed 26.01 times, while the sNII (less than ₹10 lakh) segment saw 15.50 times subscription. The Retail Individual Investors (RII) category was subscribed 3.74 reflecting healthy retail interest, the issue garnered 63,36,302 applications, with total bids amounting to approximately 2,98,279.95 crore, showcasing confidence across investor categories in the company’s growth potential.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	140.11
Non-Institutional Investors (NII)	22.50
bNII (above ₹10 lakh)	26.01
sNII (less than ₹10 lakh)	15.50
Retail Individual Investors (RII)	3.74
Total Subscriptions	41.72

Total Applications: 63,36,302 crore

Total Bid Amount (₹ Crores): 2,98,279.95

How to Check SBI Funds Management IPO Allotment Status?

SBI Funds Management IPO allotment can be easily checked online in two ways: from the Registrar’s website and from the BSE or NSE website. This IPO will be listed on both the exchanges – BSE and NSE, so the allotment status will be available to all investors on both platforms.

Method 1: Registrar’s website (KFin Technologies Limited)

The most reliable way is to check allotment from the KFin Technologies Limited website.

How to do:

Visit KFin Technologies Limited official website
Select “SBI Funds Management” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “SBI Funds Management” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the SBI Funds Management IPO

For SBI Funds Management IPO, the issue is a 100% Offer for Sale (OFS) with no fresh issue component. Therefore, the company will not receive any proceeds from the IPO. The entire proceeds of approximately ₹9,812.91 crore will be received by the selling shareholders after deducting applicable expenses and taxes.

Use of IPO Proceeds	Amount (₹ Cr)
Proceeds to be received by selling shareholders through Offer for Sale (OFS)	9,812.91

SBI Funds Management – Day 3 Update

The grey market premium (GMP) of the SBI Funds Management stands at ₹95 as of July 16, 2026 (Day 3). Considering the upper end of the price band at ₹574 per share, the estimated listing price is around ₹669, reflecting a potential gain of approximately 16.32% per share in the grey market.

Date	GMP	Est. Listing Price	Gain
16-07-2026 (Day 2)	₹95	₹669	16.32%

Disclaimer: The above GMP (Grey Market Premium) is just unofficial market information, which is not officially confirmed. These figures are shared for informational purposes only and investment decisions based on these should be based on the investor’s own research and discretion. We do not conduct, recommend or support any kind of transaction in the grey market.

SBI Funds Management IPO – Key Details

Particulars	Details
IPO Opening Date	July 14, 2026
IPO Closing Date	July 16, 2026
Issue Price Band	₹545 to ₹574 per share
Total Issue Size	17,09,56,631 shares (aggregating up to ₹9,812.91 Cr)
Listing Platform	BSE, NSE
Registrar	KFin Technologies Limited
DRHP	SBI Funds Management

Important Dates for SBI Funds Management IPO Allotment

Event	Date
Tentative Allotment	July 17, 2026
Refunds Initiation	July 20, 2026
Credit of Shares to Demat	July 20, 2026
Listing Date	July 21, 2026

Overview Of SBI Funds Management

SBI Funds Management Limited is one of India’s leading asset management companies, offering a wide range of mutual funds and investment solutions across equity, debt, hybrid, and other asset classes. The company serves retail and institutional investors through an extensive distribution network across India. Backed by SBI and Amundi, SBI Funds Management has established a strong presence in India’s growing mutual fund industry. With increasing financial awareness, rising mutual fund participation, and growing demand for professionally managed investments, the company continues to strengthen its position in India’s asset management sector.

Frequently Asked Questions (FAQs)

What is the opening and closing date of SBI Funds Management IPO ?
SBI Funds Management IPO will open on 14 July 2026 and will close on 16 July 2026.
What is the price band of the SBI Funds Management IPO ?
Its price band is fixed from ₹545 to ₹574 per share.
What is the GMP (Grey Market Premium) of SBI Funds Management IPO today?
The GMP on 16 July 2026 is ₹95, which leads to a possible listing price of ₹669.
What is the total issue size of SBI Funds Management IPO?
The total issue size of the SBI funds Management IPO is ₹9,812.91 crore, The IPO is entirely an Offer for Sale (OFS).
What is the expected listing date of SBI Funds Management ?
This IPO is expected to be listed on BSE and NSE on July 21, 2026.

July 16, 2026

SBI Funds Management IPO Day 2 GMP, Subscription & Listing Date

SBI Funds Management IPO Day 2 Subscription Status

On Day 2, SBI Funds Management. IPO witnessed a strong investor turnout, closing with an overall subscription of 2.80 times. The NII category led the demand, The Non-Institutional Investors 6.53 times subscription Overall, indicating good participation. Among Non-Institutional Investors (NII), the bNII (above ₹10 lakh) portion was subscribed 7.07 times, while the sNII (less than ₹10 lakh) segment saw 5.43 times subscription. The Retail Individual Investors (RII) category was subscribed 1.69 times, reflecting healthy retail interest, QIB approx 1.50 times the issue garnered 27,21,076 applications, with total bids amounting to approximately 19,989.98 crore, showcasing confidence across investor categories in the company’s growth potential.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	1.50
Non-Institutional Investors (NII)	6.53
bNII (above ₹10 lakh)	7.07
sNII (less than ₹10 lakh)	5.45
Retail Individual Investors (RII)	1.69
Total Subscriptions	2.80

Total Applications: 27,21,076 crore

Total Bid Amount (₹ Crores): 19,989.98

How to Check SBI Funds Management IPO Allotment Status?

Method 1: Registrar’s website (KFin Technologies Limited)

The most reliable way is to check allotment from the KFin Technologies Limited website.

How to do:

Visit KFin Technologies Limited official website
Select “SBI Funds Management” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “SBI Funds Management” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the SBI Funds Management IPO

Use of IPO Proceeds	Amount (₹ Cr)
Proceeds to be received by selling shareholders through Offer for Sale (OFS)	9,812.91

SBI Funds Management – Day 2 Update

The grey market premium (GMP) of the SBI Funds Management stands at ₹93 as of July 15, 2026 (Day 2). Considering the upper end of the price band at ₹574 per share, the estimated listing price is around ₹667, reflecting a potential gain of approximately 15.85% per share in the grey market.

Date	GMP	Est. Listing Price	Gain
15-07-2026 (Day 2)	₹93	₹667	15.85%

SBI Funds Management IPO – Key Details

Particulars	Details
IPO Opening Date	July 14, 2026
IPO Closing Date	July 16, 2026
Issue Price Band	₹545 to ₹574 per share
Total Issue Size	17,09,56,631 shares (aggregating up to ₹9,812.91 Cr)
Listing Platform	BSE, NSE
Registrar	KFin Technologies Limited
DRHP	SBI Funds Management

Important Dates for SBI Funds Management IPO Allotment

Event	Date
Tentative Allotment	July 17, 2026
Refunds Initiation	July 20, 2026
Credit of Shares to Demat	July 20, 2026
Listing Date	July 21, 2026

Overview Of SBI Funds Management

Frequently Asked Questions (FAQs)

What is the opening and closing date of SBI Funds Management IPO ?
SBI Funds Management IPO will open on 14 July 2026 and will close on 16 July 2026.
What is the price band of the SBI Funds Management IPO ?
Its price band is fixed from ₹545 to ₹574 per share.
What is the GMP (Grey Market Premium) of SBI Funds Management IPO today?
The GMP on 15 July 2026 is ₹93, which leads to a possible listing price of ₹667.
What is the total issue size of SBI Funds Management IPO?
The total issue size of the SBI funds Management IPO is ₹9,812.91 crore, The IPO is entirely an Offer for Sale (OFS).
What is the expected listing date of SBI Funds Management ?
This IPO is expected to be listed on BSE and NSE on July 21, 2026.

July 15, 2026

SBI Funds Management IPO Day 1 Subscription: GMP, Status & Review

SBI Funds Management IPO Day 1 Subscription Status

On Day 1, SBI Funds Management. IPO witnessed a strong investor turnout, closing with an overall subscription of 0.65 times. The NII category led the demand, The Non-Institutional Investors 1.28 times subscription Overall, indicating good participation. Among Non-Institutional Investors (NII), the bNII (above ₹10 lakh) portion was subscribed 1.24 times, while the sNII (less than ₹10 lakh) segment saw 1.35 times subscription. The Retail Individual Investors (RII) category was subscribed 0.63 times, reflecting healthy retail interest. The Anchor investors among second Highest with 1 times, Shareholders approx 0.90 times the issue garnered 9,08,186 applications, with total bids amounting to approximately 4,652.05 crore, showcasing confidence across investor categories in the company’s growth potential.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	0.07
Non-Institutional Investors (NII)	1.28
bNII (above ₹10 lakh)	1.24
sNII (less than ₹10 lakh)	1.35
Retail Individual Investors (RII)	0.63
Total Subscriptions	0.65

Total Applications: 9,08,186 crore

Total Bid Amount (₹ Crores): 4,652.05

How to Check SBI Funds Management IPO Allotment Status?

Method 1: Registrar’s website (KFin Technologies Limited)

The most reliable way is to check allotment from the KFin Technologies Limited website.

How to do:

Visit KFin Technologies Limited official website
Select “SBI Funds Management” from the IPO list
Enter your details PAN number, Application number, or DP/Client ID
Click on Submit
You will see the allotment status on the screen.

Method 2: Check from BSE or NSE’s website

If there is more traffic on the registrar’s website, allotment status can also be checked from BSE or NSE.

How to do:

Visit BSE or NSE’s official website
Select ‘Equity’ segment
Select “SBI Funds Management” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the SBI Funds Management IPO

Use of IPO Proceeds	Amount (₹ Cr)
Proceeds to be received by selling shareholders through Offer for Sale (OFS)	9,812.91

SBI Funds Management – Day 1 Update

The grey market premium (GMP) of the SBI Funds Management stands at ₹90 as of July 14, 2026 (Day 1). Considering the upper end of the price band at ₹574 per share, the estimated listing price is around ₹664, reflecting a potential gain of approximately 15.68% per share in the grey market.

Date	GMP	Est. Listing Price	Gain
14-07-2026 (Day 1)	₹90	₹664	15.68%

SBI Funds Management IPO – Key Details

Particulars	Details
IPO Opening Date	July 14, 2026
IPO Closing Date	July 16, 2026
Issue Price Band	₹545 to ₹574 per share
Total Issue Size	17,09,56,631 shares (aggregating up to ₹9,812.91 Cr)
Listing Platform	BSE, NSE
Registrar	KFin Technologies Limited
DRHP	SBI Funds Management

Important Dates for SBI Funds Management IPO Allotment

Event	Date
Tentative Allotment	July 17, 2026
Refunds Initiation	July 20, 2026
Credit of Shares to Demat	July 20, 2026
Listing Date	July 21, 2026

Overview Of SBI Funds Management

Frequently Asked Questions (FAQs)

What is the opening and closing date of SBI Funds Management IPO ?
SBI Funds Management IPO will open on 14 July 2026 and will close on 16 July 2026.
What is the price band of the SBI Funds Management IPO ?
Its price band is fixed from ₹545 to ₹574 per share.
What is the GMP (Grey Market Premium) of SBI Funds Management IPO today?
The GMP on 05 June 2026 is ₹90, which leads to a possible listing price of ₹664.
What is the total issue size of SBI Funds Management IPO?
The total issue size of the CMR Green Technologies IPO is ₹9,812.91 crore, The IPO is entirely an Offer for Sale (OFS).
What is the expected listing date of SBI Funds Management ?
This IPO is expected to be listed on BSE and NSE on June 21, 2026.

July 14, 2026

Category: IPO

What is the Public Offering Price?

How Does Public Offering Price Work?

Example on Public Offering Price Work

How is the Public Offering Price determined?

Public Offering Price vs Market Price

What should an investor check before applying for an IPO

Conclusion

Frequently Asked Questions (FAQs)

Is there any difference between the public offering price and the IPO price?

What is a price band in an IPO?

Does a low public offering price mean guaranteed profit?

Who decides the public offering price in an IPO?

What is the Public Offering Price?

What is an Underpriced IPO?

Formula:

Reasons for Underpricing IPO

Why Does Underpricing Happen Despite Book-Building?

Should Investors Chase Underpriced IPO?

Examples of Underpriced IPO

Underpricing vs. Overpricing

Conclusion

Frequently Asked Questions (FAQs)

What is the definition of an underpriced IPO?

How to know whether an IPO is underpriced?

Why do companies underprice their IPOs?

Does a high listing gain mean that the company is undervalued?

Does India have a history of underpricing its IPOs?

What is IPO Investing?

How does IPO Investing work?

Pre-IPO Investing – An Overview

How does Pre-IPO Investing work?

The Table of Difference: Pre IPO vs. IPO Investing

Reasons People are attracted to Pre-IPO Investing

Are Pre-IPO & Unlisted Shares the same thing?

Taxation: Pre IPO vs IPO Investments

Conclusion

Frequently Asked Questions (FAQs)

Is pre-IPO investing legal in India?

Can I sell pre-IPO shares immediately after the company lists?

What happens if a company never files for an IPO?

Are IPO listing gains guaranteed?

Can retail investors access pre-IPO shares now?

What Does Basis of Allotment Mean?

Why Is the Basis of Allotment Important in an IPO?

Who Actually Decides the Basis of Allotment?

How the Allotment Process Plays Out

The Math Behind Proportionate Allotment

How the Allotment Splits Across Investor Types

When Does the Basis of Allotment Come Out?

How to Check Your IPO Allotment Status

How to Apply for an IPO Through Pocketful

Common Reasons Investors Don’t Get an Allotment

A Few Ways to Improve Your Odds

Wrapping Up

Frequently Asked Questions (FAQs)

What is the deal with allotment in an initial public offering?

Who actually puts the allotment plan together?

When do the IPO allotments come out?

What happens if I don’t end up getting any shares?

Does sending in multiple applications for more shares increase my chances of getting an allotment?

Check if Your IPO Shares Are in Your Demat Account

How Is the IPO Listing Price Determined?

How to Sell Your IPO Shares?

Market Order vs. Limit Order: What Should You Choose?

What if the Stock Hits Upper Circuit?

What if the Stock Lists Below the Issue Price?

Should you sell on Listing Day or wait?

Tax Implications of Selling IPO Shares

Selling IPO Shares after Listing Day

Points to Remember before you Sell

Conclusion

Frequently Asked Questions (FAQs)

How soon can I sell my IPO shares after listing?

What if I do not see my shares in my demat account on listing day?

Is it better to sell during the pre-open session or after?

Do I have to pay tax if I sell on listing day itself?

Is GMP a reliable indicator of the actual listing price?

1. Paying Attention to the Hype

2. Trusting GMP a Little Too Much