Pocketful

Category: IPO

  • What Is Tax On IPO Profits In India

    What Is Tax On IPO Profits In India

    You applied for an IPO, you got the allotment, and on listing day, the stock jumped 40%. You sold. Money’s in the account. Now what?

    Most retail investors in India celebrate the gains but completely ignore what comes next, filing taxes on those profits. Either they are misreporting it altogether, or they end up paying more than they need to because they did not understand which tax rate applies.

    In today’s blog, we will learn more about how IPO taxation works in India. 

    Understanding IPO Gains

    Whenever you sell shares that you got through an IPO allotment, the gain is treated as a capital gain.

    There are two types of capital gains, depending entirely on how long you held those shares before selling.

    1. Short-term Capital Gain

    2. Long-term Capital Gain 

    Generally, most of the IPO investors sell on the listing day itself or within the first few weeks. That means almost all IPO profits fall under short-term capital gains.

    1. Short-term Capital Gain (STCG): 

    If you sold within 12 months of allotment, it is treated as a Short-Term Capital Gain (STCG). For the taxation of STCG on listed stocks of equity shares, 20% will be levied if STT has been paid. One needs to take care of their transaction records for tax filing purposes.

    Example:

    Say you got 100 shares allotted at ₹400 each. 

    On listing day, the stock touched ₹580, and you sold. 

    Your gain is ₹180 per share, which is ₹18,000. When taxed at 20%, it becomes ₹3,600. 

    Also, you need to pay a 4% health and education cess on that, which adds ₹144. So your total tax comes to ₹3,744 on that trade.

    2. Long-term Capital Gain (LTCG) 

    If you hold the shares for more than 12 months before selling, it is treated as Long-Term Capital Gain (LTCG). Long-term capital gain tax on listed equity shares is charged at the rate of 12.5%, where the gain exceeds ₹1,25,000 in a financial year. Any capital gain lower than this amount will be tax-free.

    Example: 

    If you held an IPO stock for over a year and made ₹90,000 on it, you pay zero LTCG tax. 

    But, if you made ₹2,00,000, your taxable gain is ₹75,000. 

    How? 

    ₹2 Lakh – ₹1.25 Lakh = ₹75,000 

    Tax = ₹75,000 * 12.5% = ₹9,375. 

    Do not forget to include cess.

    How to Report IPO Gains in Your ITR

    • A lot of salaried people in India still file ITR-1, which is the simplest form. But, ITR-1 does not allow you to report capital gains.
    • If you have made any profit from IPO sales, you need to file ITR-2 (if you have no business income) or ITR-3 (if you also have business income).
    • Capital gains from listed equity shares go under Schedule CG in the ITR. Your broker’s tax P&L statement will have all the data you need. 
    • The purchase price (allotment price in case of IPOs), sale price, date of purchase, date of sale, and the calculated gain.
    • Download this statement from whichever broker you use. Most brokers also give you a ready-made capital gains summary that directly maps to the ITR schedule. Make use of it.

    Quick Summary Table 

    Holding PeriodTax CategoryTax Rate (Post July 2024)
    Less than 12 monthsSTCG20% flat
    More than 12 monthsLTCG12.5% (exempt up to ₹1.25 lakh)

    Did You Know?

    Until July 2024, STCG on listed equity was taxed at 15%. But after the Union Budget 2024, this was revised to 20%. 

    It was changed from 23rd July 2024. There is no basic exemption limit that applies here. 

    On the other hand, LTCG was also revised from 10% post the July 2024 Budget with an exemption limit of ₹1 Lakh.

    What About Loss on IPOs?

    Not every IPO lists above the issue price. 

    Paytm’s listing in November 2021 is a classic example. It was allotted at ₹2,150, listed around ₹1,955, and kept falling. 

    When an IPO is sold at a loss, that will be considered as a short-term capital loss.

    Any short-term capital losses can be set off against both short-term and long-term capital gains in the same year. 

    Anything you cannot set off this year can be carried forward for up to 8 years, but only against capital gains (not against salary or other income).

    Read Also: What is Capital Gains Tax in India?

    IPO Taxation for NRI Investors 

    If you are an NRI and you have been applying for Indian IPOs, the tax rules are a bit different for you compared to resident Indians, and the difference mostly shows up in how tax is collected, not in the final rates.

    Let us start with the basics

    1. Apply through NRE & NRO Accounts

    NRIs can apply for Indian IPOs through their NRE or NRO demat accounts. 

    2. Capital Gains:

    The capital gains tax rates remain the same, i.e., 20% for short-term, 12.5% for long-term. But the key difference is TDS.

    3. Tax Deducted at Source (TDS)

    For NRIs, the buyer or the broker is supposed to deduct TDS at the time of the transaction itself. On short-term capital gains from listed equity, TDS applies at 20%. On long-term gains, it’s 12.5% after the ₹1.25 lakh exemption threshold.

    4. DTAA Agreements with Several Countries

    For NRIs, India has Double Tax Avoidance Agreements (DTAA) with numerous countries, including the United States, the United Kingdom, the UAE, Singapore, Canada, and many others. 

    If you are a tax resident in one of these countries, you will be eligible to claim the tax paid in India against the tax liability in your home country. It helps to avoid double taxation on the same income.

    For example, if you are living in the US and you paid 20% STCG tax in India on your IPO profits, you can claim that as a foreign tax credit when filing your US return.

    Should You Sell on Listing Day or Hold? 

    Almost every IPO investor faces this question the moment the allotment comes through. Do you book profits on listing day, or do you hold and see where the stock goes?

    The honest part of this conversation is that holding for tax efficiency only makes sense when you are confident that the stock will not fall sharply over the next year. 

    India’s IPO market has seen plenty of cases where a stock listed at a premium and then steadily lost value. Sula Vineyards, LIC, Paytm, these are examples where selling on or close to listing day and paying the 20% tax would have been the better financial decision overall.

    So the right question is not just about the tax rate, it is about your belief in business, and its fundamentals to hold it for a year” 

    If the answer is yes, the case for holding past the 12-month mark is genuinely strong. 

    If the answer is uncertain, it is just a hot IPO, and the valuation already looks stretched, or you do not plan to track the stock actively, taking profits on listing day and paying the 20% tax is perfectly logical.  

    Conclusion 

    Investing in IPOs and earning profits from them feels great, but they come with a tax tag. The IPO taxation is not as complicated as it sounds. If you sell on listing day, you will pay STCG. If you hold for a year or more, you pay LTCG with an exemption limit. 

    The government is watching your trades. Every transaction on NSE and BSE gets reported. So the smartest thing you can do as an IPO investor is stay compliant, report accurately, and not leave money on the table by ignoring eligible deductions. Invest in IPOs with Pocketful and enjoy zero brokerage on delivery trades, seamless applications, dedicated customer support, and detailed company insights on one platform. 

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    6Why Do We Pay Taxes to the Government?

    Frequently Asked Questions (FAQs)

    1. Which ITR form should I file if I have sold IPO shares? 

      You need to file ITR-2 if you are a salaried person with no business income.

    2. What if my IPO listed at a loss and I sold below the allotment price? 

      That will be the case of a short-term capital loss. You can set it off against other capital gains in the same year, and carry it forward for up to 8 years if unused. 

    3. Do NRIs pay a different tax rate on IPO profits? 

      The tax rates are broadly the same. The main difference is that TDS gets deducted at source for NRIs.

    4. Is STT the same as capital gains tax? 

      No, they are completely separate. STT is automatically deducted by the exchange on every sell transaction. It does not reduce or replace your capital gains tax liability in any way.

    5. What happens if I do not report IPO gains in my ITR? 

      The Income Tax Department receives transaction data directly from stock exchanges. If your gains go unreported, you are at risk of receiving a tax notice along with interest and a penalty on the unpaid amount.

  • What is IPO Lock-In Period?

    What is IPO Lock-In Period?

    When a company finally goes public, it is a moment of celebration. But for seasoned investors, the listing day is the beginning of a new complex timeline, which is because of the IPO Lock-In period.

    In today’s blog post, we will give you an overview of the IPO Lock-In period, along with the different types of lock-in period for the different categories of investors.

    What is an IPO Lock-In Period?

    The IPO Lock-In period is a fixed window of time during which a certain category of shareholders cannot sell their shares after a company lists on the stock exchange. This Lock-In period generally applies to the big investors, such as anchor investors, employees holding ESOPs, promoters, etc. This lock-in period is applicable to protect the interests of retail shareholders.

    The Lock-In period reflects the commitment of existing shareholders in the company’s future growth. Once the lock-in period is over the shares can significantly show some volatility as existing shareholders can now freely sell the shares.

    Importance of IPO Lock-In Period

    The key importance of the IPO Lock-In period is as follows:

    • Price Stability: If a large number of shares are sold in the market at once, supply would exceed demand, which can cause a sharp correction in stock price.
    • Building Confidence: IPO Lock-In period signals to the public that the insiders believe in the long-term future of the company and are not just looking for a quick exit.
    • Reducing Manipulation: Lock-In period prevents large shareholders from pumping the stock price during the IPO hype and dumping it immediately after the listing of the stock.
    • Transparency: IPO Lock-In period stated by the SEBI provide clarity to the retail investors that the company operates in a transparent manner and has long-term commitment towards its growth.

    How does the IPO Lock-In Period work

    The IPO lock-in period works in the following manner:

    • Prospectus: The company, at the time of issue of the prospectus, defines the lock-in period based on the guidelines set down by the Securities and Exchange Board of India.
    • Restrictions: Once the IPO opens certain categories of investors are restricted to sell the shares and during such lock-in period they cannot sell their shares in the market.
    • Allotment: The IPO lock-in period starts from the date when the shares are allotted to the respective shareholder or category of investor.
    • Listing of Shares: After the allotment of shares the next step would be listing of shares on the exchange. Once the listing of shares is completed the only those investors can sell shares in the open market on whom the lock-in period does not apply.
    • Expiry of Lock-In Period: Once the lock-in period ends, the restrictions are lifted. These investors can then sell their shares in the open market, which often leads to an increase in volatility.

    Types of IPO Lock-In Period

    The different types of IPO lock-in periods are as follows:

    1. Promoter Lock-In Period

    Promoters are the founders or entities that control the company. Since they have the most inside knowledge, their lock-in is usually the strictest. Under current SEBI regulations, promoters’ shares are generally locked in for 18 months from the date of allotment.

    2. Anchor Investor

    Anchor investors are the institutional investors who commit to buy shares before the IPO opens for the general public. They get the benefit of guaranteed allotment; however, in exchange, they face a specific lock-in period. The first 50% of their shares are locked for 30 days, and the remaining 50% can only be sold after 90 days.

    3. Pre-IPO and Unlisted Shareholders

    Unlisted shareholders who buy shares of a company before it goes public are subject to a 1-year lock-in period from the date the company finally lists on the exchange. During this period, your shares are frozen in your demat account.

    4. Significant Shareholders

    For companies without an identifiable promoter, SEBI has specific rules for shareholders owning more than 20% of the company. On the day of listing, these investors can only sell up to 50% on their holdings. The remaining 50% is subject to a 6-month lock-in period.

    5. Non-Promoter Pre-Issue

    The non-promoter shares held by any non-promoter are subject to a 6-month lock-in post-IPO.

    Investor CategoryTypical Lock-In PeriodObjective
    Promoters18 MonthsLong-term commitment.
    Anchor Investors30 Days (50%) & 90 Days (50%)Initial Price Stability
    Pre-IPO Shareholders1 YearPrevention of quick exits
    Significant Shareholders (>20%)6 Months (on the remaining 50%)Balanced market supply
    Non-Promoter Pre-Issue6 MonthsRegulatory Compliance

    Lock-In Period for Retail Investors in an IPO

    For a retail investor, there is no lock-in period, and they can sell their shares allotted during the IPO process anytime after the listing of the IPO. They can either sell their shares immediately after the listing, or they can hold them for the long-term. There is no compulsion to hold the shares for any particular period in the case of retail investors, thus enabling them to sell off the shares freely after listing. Same rule applied for SME IPOs.

    What happens when the IPO Lock-In Period Ends

    The end of IPO Lock-In period can impact the stock prices in the following manner:

    • Increase in Supply: Once the IPO Lock-In period ends the supply of shares increases sharply as a large number of shares become available for trade. An instant supply can put downward pressure on the stock price.
    • Volatility: The share prices might see some volatility as large shareholders selling their shares. This generally happens near the end of the lock-in period.
    • High Liquidity: The liquidity of the stock generally improves as it results in improving trading experience for the traders.
    • Block Deal: After the closure of the lock-in period large investors generally sell their shares through block-deal instead of selling them through open market with an objective to minimize price disruption.

    Advantages of IPO Lock-In Period

    The key advantages of the IPO Lock-In period are as follows:

    • Protect Small Investors: The IPO Lock-In period protects the small investors as it stops the dumping of stocks by the large institutional investors.
    • Showcase Performance: It gives a new company which is listed on the stock exchange an opportunity to prove its financial health through quarterly results before any major exits happen.
    • Reduce Volatility: The IPO Lock-In period keeps the stock price stable during the first few weeks of trading, hence it allows retail investors to book their profit accordingly.
    • Price Discovery: IPO Lock-In period allows the market participants a fair time to evaluate the performance of the company and calculate the fair price.

    Read Also: What is Pre-IPO Investing?

    Limitations of IPO Lock-In Period

    The key limitations of the IPO Lock-In period are as follows:

    • Liquidity: The IPO Lock-In period does not allow a few categories of investors to sell their shares during such Lock-In period; hence, they cannot access their capital if required.
    • Late Profit Booking: Investors who invest early in the company and take high risk have to wait for a few months to book their profits.
    • Significant Price Crash: Once the Lock-In period is over, it can create a mess, and a sudden drop in share prices can incur significant losses for the large shareholders.
    • Short-term Protection: The IPO Lock-In period only allows short-term protection to the retail shareholders. After the end of the lock-in period the sudden volatility in the stock can impact retail investors.

    Conclusion

    On a concluding note, if you are a retail investor, then you do not need to worry about the IPO Lock-In period; you are free to sell your shares whenever you want after listing. However, the lock-in period of other shareholders affects your investment. Before investing in an IPO or buying a recently listed stock, you need to check the calendar whether the lock-in period of any large investor is about to end, and it is advisable to consult your investment advisor before making any investment in an IPO.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    2How to Cancel an IPO Application?
    3Why Invest in anKey Difference Between IPO and FPOIPO and its Benefits?
    4What is Face What is the IPO Cycle
    5What is NII in IPO?
    6What Is An IPO Mutual Fund? Should You Invest?
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    Frequently Asked Questions (FAQs)

    1. What is the IPO Lock-in period?

      An IPO Lock-up is a period or duration during which a certain category of investor cannot sell their shares in the market after the listing of the IPO.

    2. What is the duration of the IPO Lock-in period?

      The lock-up period of an IPO after listing depends on the categories of investors; it may range from a few days to months.

    3. How do I know when I can sell my IPO shares?

      You can sell your IPO shares once it is credited to your demat account and immediately after the listing of the IPO on the exchange.

    4. Is there any lock-in period for retail investors investing in an IPO?

      No, there is no lock-up period for retail investors investing in an IPO. They are free to sell their share anytime after the listing.

    5. Do all the IPOs have a lock-in period?

      No, generally most of the IPOs have a lock-up period for certain categories of investors. Although the exact rules and lock-up duration may differ from one company to another.

    6. Does the stock price always fall after the lock-in period is over?

      No, the share prices don’t always need to fall after the end of the lock-up period.

  • How to Bid for an IPO in India (2026)

    How to Bid for an IPO in India (2026)

    Whenever a new company enters the stock market and gets itself listed, it becomes very popular among the investors. Investors generally find the IPO application process confusing; therefore, understanding the IPO bidding process is essential before making any IPO application and increasing the chances of successful allotment. 

    In today’s blog post, we will give you an overview of IPO bidding, along with the steps on how to bid for an IPO.

    What is IPO Bidding?

    IPO bidding is a mechanism or process through which an investor applies for shares in an Initial Public Offering (IPO). They place bids by mentioning the quantity of shares to apply for, along with the price. During the IPO, the company provides a price band or price range within which the applicant can apply.

    Key Feature of IPO Bidding

    The key features of IPO bidding are as follows:

    • Lot Size: The IPO bidding can be placed in lots or fixed quantities defined by the companies during the IPO. Investors cannot apply for a random number of shares and can only bid in lots, and the minimum bid can be for at least one lot.
    • ASBA Process: ASBA or an application supported by a blocked amount is the only process through which an investor can apply for an IPO. In this process, the amount is blocked in the investor’s bank account until the completion of the allotment process.
    • Price Band: In the IPO process, the company announces a minimum and maximum price band, and investors can place bids within that range.
    • Category of Investors: IPO bidding is divided into different categories of investor groups, such as retail individual investors, non-institutional investors, etc. However, each category of investor has a reserved portion in the IPO.

    How Does IPO Bidding Work

    The steps of the IPO bidding process are as follows:

    • Announcement of IPO: Whenever the companies plan to raise funds from the public, they announce an IPO in which details such as market lot, price band, etc. are given.
    • Placing Bids: Investors can apply for the IPO through their broker’s platform through ASBA. For this, an investor is required to choose the quantity and price at which they want to invest.
    • Blocking Amount: The amount of the application is blocked in the bank account of the investor through the ASBA process. The amount will be deducted from the account only upon the allotment of shares; otherwise, it will be refunded.
    • Allotment of Shares: Once the entire allotment process is completed, the successful bidder will get the shares based on the subscription. If the IPO is oversubscribed, shares are allotted on the basis of a lottery system, whereas if the IPO is undersubscribed, every applicant gets the shares.
    • Listing of Shares: This is the last step in the entire IPO bidding process. Once the allotment is completed, shares are listed on the stock exchanges.

    Read Also: Strategies To Boost Your IPO Allotment Chances

    How to Bid for IPO

    To bid for an IPO, one can follow the steps mentioned below:

    • Open a Demat and Trading Account: To apply for an IPO, one is required to have a demat and trading account. Pocketful offers you an opportunity to open a lifetime free demat and trading account and execute zero brokerage delivery trades.
    • Identify the IPO: Then, the next step is to identify the IPO in which one wishes to invest. The selection of IPO will be based on various parameters such as the objective of the issue, price band, company fundamentals, etc.
    • Log in to the Mobile Application: After you select the IPO, you need to log in to the mobile application provided by your broker, visit the IPO section and choose the IPO in which you wish to apply.
    • Enter Details: Once the IPO is selected, you need to select the category of investor, enter the desired quantity or market lot, and choose the bidding price.
    • Payment: After entering the details, you need to enter the UPI ID and make the payment. Once the payment is made, the amount will be blocked in your bank account through ASBA, commonly known as application supported by blocked amount.

    Types of Bid Price in IPO

    The two main types of IPO bids are as follows:

    • Cut-Off Price: This is the price at which the investor agrees to buy the shares at the final issue price, which is decided by the company after the bidding process is completed. This method of bidding is commonly used by retail investors as it increases the chance of their allotment.
    • Specific Price: In the specific price of bidding, the investor enters a specific price within the price band of the IPO. An investor in the specific price bidding process will receive the shares only when the final issue price decided by the company is equal or less than the bidding price. This method is generally useful for the investor who has strong market analysis. 

    Factors to Consider before IPO Bidding

    The key factors which an investor should consider before IPO bidding are as follows:

    • Business Model of Company: The company’s business model plays a key role in deciding the company’s performance for IPO. If the company has a long and sustainable business model, it is expected to perform well in the long-run.
    • Financial Performance: The financial performance of a company, such as profit, revenue, etc., must be evaluated before making any investment in an IPO. One should conduct detailed research about the company’s financials and should opt for companies having consistent and growing profit margins, etc.
    • Valuation of IPO: Before opting for investing in an IPO, an investor is required to check its valuation with other listed companies of the same industry. An overvalued or expensive IPO may contain a higher risk after listing.
    • Objective of IPO: One must look for the objective of the company’s issue. The common objective of the company’s IPO issue is business expansion, debt repayment, and meeting the requirements of working capital.

    Mistakes to Avoid During IPO Bidding

    The key mistakes which an investor should avoid during the IPO bidding process are as follows:

    • Account Balance: IPO bidding is completed through the ASBA process, in which funds are blocked in your bank account. Therefore, if the investor is applying for an IPO, they must maintain a sufficient balance in their respective bank account.
    • Short-term Gains: Commonly, there is a certain category of investor who generally invests in an IPO only for the listing gains. However, one must understand that not every IPO delivers strong listing gains. Hence, one must analyse IPO for both long-term and short-term strategies.
    • Following Rumours: There are certain IPOs which can be overhyped on social media, and any unofficial tips related to such IPOs can cause significant loss for the investors.
    • Ignoring Market Conditions: If the market conditions are not favourable, then there are high chances that even good IPOs can also perform poorly. Therefore, one should consider broader market conditions before investing.

    Read Also: What are the Different Types of IPO in India?

    Conclusion

    On a concluding note, bidding for an IPO is a simple process once you understand it. It requires checking the company’s fundamentals, the correct price for bidding, blocking funds using ASBA, etc. However, applying for an IPO using the correct bidding process does not always guarantee profit; an investor should focus on the company’s fundamentals, the objective of the IPO, etc. An investor must avoid common mistakes before applying for an IPO. And it is advisable to consult your investment advisor before making any investment in an IPO.

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

    Frequently Asked Questions (FAQs)

    1. What is the cut-off price in an IPO application?

      The cut-off price is the price at which an investor agrees to buy a share at the final issue price, which is decided by the company after the IPO bidding process is closed.

    2. What is ASBA in an IPO?

      ASBA is often known as Application Supported by Blocked Amount. It is a system in which the IPO amount remains blocked in the investor’s bank account until the shares are allotted to them.

    3. What is the difference between the cut-off and bid price in an IPO?

      A bid price is a specific price chosen by an investor within the price band. Whereas the cut-off price is a price which is accepted by the investor after the IPO final price is issued by the company.

    4. What is the price band in an IPO?

      A price band is a range of prices that includes a minimum and a maximum price between which an investor can apply for the IPO.

    5. How can I apply for an IPO?

      To apply for an IPO, you are required to have a demat and trading account. Pocketful offers you an opportunity to open a lifetime free demat account with zero brokerage on delivery trades. Using Pocketful’s mobile application, you can easily apply for the IPO.

  • How to Check IPO Allotment Status

    How to Check IPO Allotment Status

    You applied for an IPO. Now, you are waiting to find out if you got the shares. This is what basically refers to the IPO allotment status. The process of checking is very simple, and you will get all the updates. But the question is, how can you do so? Well, if you are new to trading and investing, read this to know the details. 

    What is IPO Allotment?

    IPO allotment is the process by which shares of a company going public are distributed among investors. It is given on a certain basis to the people who actually applied for the shares during the subscription window. 

    Once the IPO subscription period closes, the registrar collects all valid applications. After that, it determines who receives shares and how many.

    Now, there are usually two situations that happen:

    • Oversubscription: This means more investors applied than there are shares available. In this case, the allotment is decided through a computerised lottery or on a proportionate basis. 
    • Undersubscription: The IPO is not fully subscribed, meaning there are more shares available than demand. This means all applicants typically receive the shares they applied for.

    The entire allotment process is governed by SEBI’s ICDR Regulations, which ensure a fair, transparent, and randomised distribution of shares.

    What is IPO Allotment Status?

    IPO allotment status is simply the process of checking whether you are allotted the shares or not. This will help you know the number of shares allotted and their value.

    Once the registrar finalises the Basis of Allotment (BOA), the allotment status becomes publicly available. This is where the investors can check it using their PAN number, application number, or DP/Client ID.

    When is IPO Allotment Status Declared?

    IPO allotment status is usually declared 1 to 2 working days after the IPO subscription closes. The exact timeline will be based on the registrar. But this is an average timeline that you would see for most of the IPOs.

    Now, this is how the work is carried on:

    • Day 1 to 3: IPO subscription window is open.
    • Day 4 to 5: Application data sent to the registrar for validation.
    • Day 6: Basis of Allotment finalised; allotment status goes live.
    • Day 7: Shares credited to the Demat accounts of successful applicants. At the same time, the refunds are initiated for unsuccessful ones.
    • Day 8 to 9: Listing on stock exchanges.

    Different registrars publish allotment results at different times of the day. Bigshare typically updates results around 7 PM, K Fintech around 11 PM, and MUFG Intime (formerly Link Intime) around 11:30 PM on allotment day.

    Documents / Details Required to Check IPO Allotment Status

    Now, when you are planning to check the allotment status, you will need to have some documents. These include:

    • PAN Number (most commonly used).
    • IPO Application Number (found on your ASBA bank receipt or UPI mandate).
    • DP ID / Client ID (your Demat account details).
    • Bank Account Number with IFSC (accepted by some registrars).

    How to Check IPO Allotment Status: All Methods

    There are four primary ways to check your IPO allotment status online. Each method is equally valid.

    Method 1: Check IPO Allotment Status on the Registrar’s Website

    1. Visit the official website of the registrar handling your IPO. The common ones in India are:
      1. KFintech (formerly Karvy)
      2. MUFG Intime (Link Intime)
      3. Bigshare Services
      4. Cameo Corporate Services
    2. Look for the “IPO Allotment Status” section on the homepage.
    3. Select the IPO name from the dropdown menu.
    4. Choose your preferred search option: PAN Number, Application Number, or DP/Client ID.
    5. Enter the required details carefully.
    6. Click on “Submit” or “Search.”
    7. Your allotment status will be displayed on screen, showing whether shares were allotted, and if so, how many.

    Pro tip: If your PAN search returns “application not found,” try searching with your application number instead. Technical delays on registrar portals are common on allotment day due to high traffic.

    Method 2: Check IPO Allotment Status on BSE

    1. Visit the BSE official website.
    2. Navigate to the “Investors” section and click on “Application Status / IPO Allotment.”
    3. Select the IPO name from the dropdown list.
    4. Enter your application number or PAN number in the field provided.
    5. Complete the captcha verification if prompted.
    6. Click on “Search.”
    7. Your allotment details will appear on screen.

    Method 3: Check IPO Allotment Status on NSE

    1. Visit the NSE IPO verification page.
    2. Select “Equity and SME IPO Bid Details” or “Debt IPO Bid Details” depending on your application type.
    3. Choose the IPO name from the available options.
    4. Enter your PAN number or application number.
    5. Click “Get Data” or “Submit.”
    6. Your bid and allotment information will be displayed.

    Method 4: Check IPO Allotment Status on the Pocketful App

    1. Log in to your Pocketful account on the app or web platform.
    2. Navigate to the IPO section from the main menu.
    3. Go to “Applied IPOs” or “IPO Status.”
    4. Select the IPO for which you want to check the allotment.
    5. Your allotment status, number of shares allotted, and refund details will be displayed directly within the app.

    Pocketful makes IPO tracking seamless by consolidating your application details, allotment results, and Demat credit updates in one place. You will also receive push notifications and alerts once your allotment status is updated.

    What Happens After IPO Allotment?

    Once the allotment is finalised, here is what happens next.

    • If you get the shares allotted, you will be able to find them in your demat account.
    • If the allotment is not done which means your application is rejected. You will get a refund. This can take 1-2 working days.

    Why Was My IPO Not Allotted?

    There are several common reasons why an IPO application might not receive allotment:

    ReasonWhat It Means
    OversubscriptionMore investors applied than the shares available, so allotment was done through a lottery system.
    Invalid ApplicationIncorrect PAN, wrong bank details, or multiple applications using the same PAN can lead to rejection.
    Insufficient FundsThe required amount was not available in the bank account for ASBA blocking.
    UPI Mandate Not ApprovedThe UPI mandate was not approved within the given time limit.
    Bid Below Cut-Off PriceThe bid price was lower than the required cut-off price, making the application invalid in certain categories.

    Tips to Improve Your Chances of IPO Allotment

    While allotment in oversubscribed IPOs depends on luck in the retail category, here are a few strategies that may help:

    • Apply through multiple eligible family members to improve overall allotment chances, as each PAN is treated separately.
    • Apply only for the minimum lot size in the retail category, since smaller applications often have a better allotment probability in oversubscribed IPOs.
    • Use the ASBA facility through your bank to avoid payment or fund-blocking issues.
    • Recheck all details carefully before submitting.
    • Submit the IPO application early to avoid last-minute server issues or delays.
    • IPO: An Initial Public Offering is the process by which a company goes public. It offers shares to the people and raises capital.
    • ASBA: Application Supported by Blocked Amount is a payment system. In this, the IPO amount remains blocked in your bank account until allotment is completed.
    • Basis of Allotment: An official document released by the registrar. This shows how IPO shares were distributed among different investor categories.
    • Cut-Off Price: The final issue price at which shares are allotted to retail investors who apply at the cut-off option.
    • Lot Size: The minimum number of shares an investor must apply for in an IPO application.

    Conclusion

    Checking your IPO allotment status is simple. But it is only when you know where to look. You can use the registrar’s portal, BSE, NSE, or your broker’s platform, all of which provide real-time results after the allotment is declared. But if you are a beginner, looking for investing support, use Pocketful, where you can open a lifetime free demat account and trade without paying any brokerage on delivery based trades. 

    Frequently Asked Questions (FAQs)

    1. What is IPO allotment status?

      IPO allotment status refers to the outcome of your IPO application. It confirms whether you have been allotted shares or not.

    2. How to check IPO allotment status?

      You can check IPO allotment status through four main channels. These are the IPO registrar’s official website, the BSE website, the NSE website, or directly through your broker’s platform. You will need your PAN number, application number, or DP/Client ID to proceed.

    3. When is IPO allotment status declared?

      IPO allotment status is typically declared 1 to 2 working days after the IPO subscription period closes. The exact date is announced in the IPO prospectus. It is also available on the registrar’s website.

    4. What happens if I do not get IPO allotment?

      If you do not receive an allotment, the funds blocked in your account through ASBA will be automatically unblocked within 2 to 3 working days. No manual action is required from your end.

    5. Can I check IPO allotment status using my Demat account details?

      Yes. Most registrar portals and broker platforms allow you to check allotment status using your DP ID and Client ID, which together form your Demat account number, in addition to PAN and application number.

  • CMR Green Technologies IPO Allotment Status: Check Latest GMP, Steps to Verify Status

    CMR Green Technologies IPO Allotment Status: Check Latest GMP, Steps to Verify Status

    CMR Green Technologies, one of India’s leading non-ferrous metal recycling companies , is launching an initial public offering (IPO) to raise up to ₹630.88 crore. The issue opens for subscription on June 3, 2026, and will close on June 5, 2026, with a price band fixed at ₹182 to ₹192 per share. Since the IPO is a pure 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 June 10, 2026, subject to allotment and necessary regulatory approvals.

    CMR Green Technologies IPO Day 3 Subscription Status

    On Day 3, CMR Green Technologies. IPO witnessed a strong investor turnout, closing with an overall subscription of 2.31 times. The QIB category led the demand, The Qualified Institutional Buyers (QIB) 270.46 times subscription Overall, indicating solid institutional participation. Among Non-Institutional Investors (NII), the bNII (above ₹10 lakh) portion was subscribed 187.21 times, while the sNII (less than ₹10 lakh) segment saw 142.42 times subscription. The Retail Individual Investors (RII) category was subscribed 26.90, reflecting healthy retail interest. The Total NII Subscription among second Highest with 172.28, the issue garnered 33,59,866  applications, with total bids amounting to approximately 56,173.51 crore, showcasing strong confidence across investor categories in the company’s growth potential.

    Investor CategorySubscription (x)
    Qualified Institutional Buyers (QIB)270.46
    Non-Institutional Investors (NII)172.28
    bNII (above ₹10 lakh)187.21
    sNII (less than ₹10 lakh)142.42
    Retail Individual Investors (RII)26.90
    Total Subscriptions126.96

    Total Applications: 33,59,866 

    Total Bid Amount (₹ Crores): 56,173.51

    How to Check CMR Green Technologies IPO Allotment Status?

    CMR Green Technologies 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 “CMR Green Technologies” 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 “CMR Green Technologies IPO” from the IPO list
    • Enter PAN number and Application number
    • Click on Search

    Objective of the CMR Green Technologies IPO

    For CMR Green Technologies 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 ₹630.88 crore will be received by the selling shareholders after deducting applicable expenses and taxes. 

    Use of IPO ProceedsAmount (₹ Cr)
    Proceeds to be received by selling shareholders through Offer for Sale (OFS) 630.88 

    CMR Green Technologies – Day 1 Update

    The grey market premium (GMP) of the CMR Green Technologies stands at ₹77 as of June 05, 2026 (Day 3). Considering the upper end of the price band at ₹192 per share, the estimated listing price is around ₹269, reflecting a potential gain of approximately 40.10% per share in the grey market.

    DateGMPEst. Listing Price Gain 
    05-06-2026 (Day 3)₹77₹26940.10%

    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.

    CMR Green Technologies IPO – Key Details

    ParticularsDetails
    IPO Opening DateJune 03, 2026
    IPO Closing DateJune 05, 2026
    Issue Price Band₹182 to ₹192 per share
    Total Issue Size3,28,58,323 shares (aggregating up to ₹631 Cr)
    Listing PlatformBSE, NSE
    RegistrarKFin Technologies Limited 
    CMR Green Technologies CMR Green Technologies 

    Important Dates for CMR Green Technologies  IPO Allotment

    EventDate
    Tentative AllotmentJune 8, 2026
    Refunds InitiationJune 9, 2026
    Credit of Shares to DematJune 9, 2026
    Listing Date June 10, 2026

    Overview Of CMR Green Technologies 

    CMR Green Technologies Limited is one of India’s leading non-ferrous metal recycling companies, specializing in recycled aluminium alloys, zinc alloys, and other value-added metal products. The company primarily serves the automotive, engineering, and industrial sectors through its network of manufacturing facilities across India. By converting metal scrap into high-quality recycled products, CMR promotes sustainable manufacturing and supports the circular economy. With growing demand for lightweight automotive components and environmentally friendly materials, the company has established a strong presence in India’s aluminium recycling industry and continues to expand its market position. 

    Frequently Asked Questions (FAQs)

    1. What is the opening and closing date of CMR Green Technologies IPO ?

      CMR Green Technologies IPO  is open on 03 June 2026 and will close on 05 June 2026.

    2. What is the price band of the CMR Green Technologies IPO ?

      Its price band is fixed from ₹182 to ₹192 per share.

    3. What is the GMP (Grey Market Premium) of CMR Green Technologies IPO today?

      The GMP on 05 June 2026 is ₹77, which leads to a possible listing price of ₹269.

    4. What is the total issue size of CMR Green Technologies  IPO?

      The total issue size of the CMR Green Technologies  IPO is ₹630.88 crore, The IPO is entirely an Offer for Sale (OFS) of 3.29 crore equity shares by existing shareholders, and therefore, the company will not receive any proceeds from the issue. 

    5. What is the expected listing date of CMR Green Technologies?

      This IPO is expected to be listed on BSE and NSE on June 10, 2026.

  • What is IPO Valuation?

    What is IPO Valuation?

    ave you ever wondered what an IPO is? Companies invite everyday people like you and me to become partners in their business. We call this process an Initial Public Offering or IPO.

    The stock market offers great chances to grow your wealth. But how do we know that the share price is correctly valued. This brings us to a very important idea called IPO valuation. Understanding IPO valuation and the key metrics for investors is the secret to making smart choices.

    It helps us see the real quality of a business instead of just the hype. Let us explore these concepts. This way, you can look at upcoming IPOs with confidence.

    Meaning of IPO Valuation

    IPO valuation is simply putting a fair price tag on a private company before it starts selling shares to the public. The company wants to raise money, while investors are looking for a good deal. If the share price is overvalued people won’t buy and undervalued stock creates concern in investors mind.

    To know the correct valuation, merchant bankers step in. They research into the company’s past profits, future growth plans, and the overall market mood. A company can’t just guess its worth, it has to prove it with real financial data.

    After SEBI reviews these numbers to protect your money, a fair valuation ensures the business gets the capital it needs to expand, while giving everyday investors a reasonably priced entry point.

    How to Evaluate an IPO

    Here is how you can evaluate a new IPO before investing your hard earned money:

    Step 1: Know the Company

    Before you even look at the numbers, you must completely understand what the business actually does. This is your very first step. Take some time to examine their core business model and see exactly how they make their money. You should also figure out what products or services they sell and who their main competitors are. A strong understanding of the company’s basic operations will help you decide if it is a good fit for your portfolio. You can easily find all this important information by reading the summary section of their official prospectus document 

    Step 2: Deep Dive into Financial Health

    To understand if a business is truly doing well, we must look at its financial health closely. This is the most crucial part of your research. You should start by looking at their revenue growth. This simply tells you if their sales are increasing year after year. Next, if a company carrying too much debt might struggle heavily during tough economic times.

    Step 3: Decode Valuation and Pricing

    Once you know the company is financially healthy, you need to see if the price they are asking for is fair. Companies going public will provide a price range, but you must evaluate if this valuation makes sense. You can do this by looking at popular valuation multiples. One of the best tools is the Price to Earnings ratio. This compares the stock price of the company to the profit it makes for every single share. 

    Step 4: Analyze Company Performance and Future Growth Prospects

    To identify the performance investor should check the vision and mission statement of the company for their current and future plans. Unique selling proposition of company If they had a strong and proven track record of growing its sales and profits continuously, investors will naturally trust it a lot more. Such high quality companies usually demand a higher valuation because people strongly believe they will continue to deliver excellent returns in the future.

    Step 5: Assess the Overall Market Conditions

    The current mood of the overall stock market plays a massive role in the success of any new public offering. Factors like fast moving industry trends and general economic conditions deeply affect how much interest investors will show in new shares. Timing is completely essential here. Even a brilliantly run company might struggle to find buyers if it launches its public issue during a negative economic phase.

    Step 6: Review the Management Team and Understand Risks

    A great business idea always needs a brilliant team to run it successfully. You should always look at the people leading the company. A strong management team with a clean corporate record adds a massive amount of hidden value to the business. Good corporate governance ensures that the company works for the benefit of the regular shareholders. 

    Understanding how the company plans to utilize the raised capital can provide brilliant insights into its future prospects. This simple piece of information is extremely essential for determining whether the company is a strong candidate for your personal investment portfolio.

    Read Also: What Are the Different Types of IPO Investors

    How Does IPO Valuation Work

    The valuation process is a mix of science and art. It involves deep math, future guessing, and understanding the market mood. The company hires merchant bankers to handle this big task.

    First, the bankers look deeply into the core financials of the business. They use common methods like the Discounted Cash Flow approach.  After getting a base value, they compare the company to similar businesses already in the stock market. This helps them see what investors are ready to pay for similar profits. 

    This modern process makes sure the market has a fair voice. If public demand is very high, the price usually settles at the top of the band. If demand is low, it settles near the bottom.

    Key Factors that Affect IPO Valuation

    Many things inside and outside the company can change its final price tag. Let us look at the main factors that drive this valuation. These points can completely change how you view a business.

    • Financial Performance and Growth: Past financial records are the biggest deciding factor. Companies with growing profits and strong cash flows naturally get a higher value. Future growth is also very important for investors who want long term returns.
    • Industry Trends: The sector of the company changes everything. A business in a fast growing space like green energy or AI will get a much higher value. A company in a slow or shrinking industry will be valued lower.
    • Peer Valuation: Bankers look very closely at the competitors. If a similar listed company trades at a certain level, the new IPO will likely be priced around the same mark. It is hard to ask for a higher price without showing better profits.
    • Investor Demand and Market Mood: The overall mood of the stock market matters greatly. In a happy, booming market, investors are ready to pay more for new shares. During tough economic times, companies often drop their asking price to attract careful buyers.
    • Management Team: A great leader with a clean record adds hidden value. Investors trust good management to handle rough patches safely. This trust naturally boosts the overall valuation.

    Read Also: Mainboard & SME IPO Eligibility Criteria

    Conclusion

    Investing in a new public issue can be a very rewarding journey. You do not need to be a finance expert to understand the basics. By looking at simple metrics, reading the company papers, and ignoring market noise, you can find great opportunities.

    Remember, every giant company today was once a new IPO. With patience and the right digital tools like Pocketful by your side, you can confidently take part in these new offerings. We hope your investment journey is filled with great learning, smart choices, and excellent long term growth.

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    Frequently Asked Questions (FAQs)

    1. What is the meaning of IPO valuation?

      IPO valuation is simply to the correct valuation of the company. Merchant bankers study the business to find a price that is fair for both the company and the investors.

    2. What are the key metrics used to evaluate a new public issue?

      The most common metrics are the Price to Earnings ratio, the Price to Book ratio, and the Price to Sales ratio. You can easily find this data in the company’s prospectus. 

    3. How can I use the Price to Earnings ratio to make a decision?

      You use it by comparing the new stock with its listed competitors. If the new company asks for a multiple of 40 while the industry average is 20, the stock might be too expensive. You should only pay a high price if the growth plans are exceptional.

    4. What are the main benefits of analyzing the valuation before investing? 

      Checking the valuation actively protects you from buying hyped up, costly stocks that might fall after listing. It helps you invest based on pure logic rather than market emotions.

    5. How do market conditions impact the valuation process?

      In negative market conditions, even companies having good financial health can struggle to find investors.

  • What is a Book Running Lead Manager (BRLM) in IPO?

    What is a Book Running Lead Manager (BRLM) in IPO?

    Whenever you invest in any IPO, you might have gone through a term commonly known as the Book Running Lead Manager. BRLMs are institutions responsible for managing and ensuring the successful listing of an IPO. They handle pricing, regulatory compliance, and investor coordination throughout the IPO process. Understanding their role can help investors make better IPO investment decisions. 

    In today’s blog post, we will give you an overview of Book Running Lead Manager, along with their importance in the IPO listing process.

    What is a Book Running Lead Manager?

    A book-running lead manager is often known by various names in the financial industry, such as investment banks and merchant bankers, who are primarily engaged in launching an Initial Public Offer (IPO) or Follow-On Public Offer (FPO) for a company. The Book Running Lead Manager manages the entire process, including preparing the IPO document, filing the draft red herring prospectus, and obtaining SEBI approval.

    Key Features of Book Running Lead Manager

    The features of the book running lead manager are as follows:

    • IPO Process: The book running lead manager manages the entire IPO process for a company, which includes preparing documents, coordinating with the regulating authorities, etc.
    • Pricing of IPO: Deciding the IPO price is one of the key roles of the book-running lead manager. The BRLM analyses the market conditions, valuation of the company, and sector performance and then decides the price at which the IPO can be issued.
    • Book Building Process: BRLM handles the entire book-building process. In which the investor places the bids within the defined price band, and based on which it determines the price.
    • Intermediary: The book-running lead managers act as a middleman between the company that is issuing shares, investors, regulating authorities, etc.

    Why Is a Book Running Lead Manager Important in an IPO?

    The key importance of a book-running lead manager is as follows:

    • Easy Execution: Whenever the company decides to launch an IPO, it has to go through several steps, such as documentation, approvals, marketing, pricing, etc. A book-running lead manager helps a company in all such steps so that the company can launch its IPO efficiently.
    • Regulatory Compliance: Several regulatory authorities, such as SEBI, exchanges, etc., have laid down various compliances that need to be followed by a company that wants to list themself on the exchange. BRLM helps companies in following those compliances.
    • Managing Subscription: BRLM manages the IPO issue in a way that it reaches the potential investors. BRLM’s marketing strategies help in increasing the participation of investors and the chances of subscription.
    • Increase Investor Confidence: If a company hires an experienced book-running lead manager, it increases the credibility of the IPO. And investors feel more confident about the company issuing an IPO.

    Read Also: What is the Book-Building Process in an IPO?

    Responsibilities of a Book Running Lead Manager

    The key responsibilities of a book running lead manager are as follows:

    • Initiating IPO Process: Once the company decides to go public, it appoints a book-running lead manager to handle the entire process. The BRLM manages the entire IPO process, prepares the timeline, coordinates with intermediaries, etc.
    • IPO Documents: The key importance of BRLM is to prepare the important documents related to IPOs, such as DRHP, RHP, offer documents, etc. They evaluate the company’s financial performance, and based on this, they prepare such data.
    • Regulatory Compliance: The BRML ensures that the IPO complies with all the regulatory guidelines laid down by the different authorities, such as the Securities and Exchange Board of India and stock exchanges.
    • Underwriting the IPO: There are a few cases in which the book-running lead manager underwrites the IPO by agreeing that if the shares are undersubscribed by the public, they will subscribe to make the IPO a successful issue.
    • Marketing IPO: Once the IPO approval is given by the SEBI, after the finalisation of the price band. The book-running lead managers start marketing the IPO through investor presentations, electronic media, etc.
    • Managing Allotment Process: After the closure of the IPO issue date, the book-running lead manager completes the process of IPO allotment by allotting the shares to the successful bidder, and the refund process.
    • Listing: Once the refund and allotment process is completed successfully, the book running lead manager coordinates with the exchanges and gets the formalities done related to listing, and gets the share listed on the final date.

    BRLM vs Other IPO Intermediaries

    The key difference between BRLM and other IPO intermediaries is as follows:

    ParticularsBRLMOther IPO Intermediaries
    Key RoleThe book running lead manager manages the entire IPO prices.While other IPO intermediaries performs specific tasks related to an IPO.
    ResponsibilitiesBRLM acts as an coordinator between company, SEBI, and investor.They are only responsible for the specific IPO process.
    PricingIt helps in deciding the price band of the IPO.Other IPO intermediaries are not involved in pricing decision.
    MarketingBRLM conducts the entire marketing of the IPO and ensures that it reaches to every potential investor.IPO intermediaries do not focus on the marketing or have a limited role in marketing of the IPO.
    DocumentingBRLM prepares different types of documents such as DRHP, RHP, etc.Whereas, other IPO intermediaries prepares documents related to specific tasks.
    Interaction with Institutional InvestorsBRLM directly interacts with the institutional investors to manage the subscription.They do not interact with investors; they interact only with operational teams.
    CoordinationBRLM works with various intermediaries, such as registrars, underwriters, and advisors.They consist of the registrar, bankers, auditors, etc.

    How Companies Select a Book Running Lead Manager

    There are various factors based on which a company selects a book running lead manager, a few of which are mentioned below:

    • Experience: Most of the companies choose the book running lead manager based on their experience in handling IPOs and FPOs. They check their track records and how they manage the entire IPO process. This is a key factor in selecting an IPO book-running lead manager.
    • Expertise: There are certain book-running lead managers who are experts in managing the IPOs of a particular sector or industry. Hence, companies choose BRLM that understands their industry, business model, etc.
    • Network: The book-running lead managers’ network plays a key role in their selection for an IPO. BRLMs that have strong connections with the institutional, foreign, and anchor investors are chosen by the companies to manage their IPOs.
    • Fees and Services: The fees charged by the book-running lead managers are generally high; companies must evaluate and compare the fees and services offered by the book-running lead managers before choosing them for the IPO process.
    • Understanding Valuations: The valuation of the companies plays a key role in deciding the company’s IPO success. Therefore, companies are required to choose the book running lead managers that can accurately calculate the company’s valuation, price band, etc. 

    Conclusion

    On a concluding note, a book-running lead manager plays a role in the success of an IPO. They take sole responsibility for managing the entire IPO process, including determining the valuation and price band of the issue till the final step of listing shares on the exchange. Companies select the book running lead managers based on their experience, expertise, etc. The marketing and networking of the BRLMs increases the investors’ confidence in the company and the successful listing of the IPO. However, only reputed BRLMs do not always guarantee the success of an IPO; it is advisable to consult your investment advisor before making any investment in an IPO. Invest in IPOs with Zero Brokerage on Pocketful – an easy-to-use platform built for seamless investing and trading.

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    Frequently Asked Questions (FAQs)

    1. Who is the Book Running Lead Manager?

      A book-running lead manager is the financial institution that manages the entire IPO and FPO process for a company. The process includes calculating the valuation of the company, the price band of the IPO, and getting the regulatory approval done, etc.

    2. Is it mandatory for a company to appoint a BRLM?

      Yes, in most of the book-building IPOs, the appointment of the book-running lead manager is mandatory.

    3. Does the appointment of a reputed BRLM by a company guarantee the success of the IPO?

      No, the appointment of a reputed BRLM by a company does not guarantee the success of an IPO. The success of an IPO depends only on the participation of investors, the price band of the IPO, and the company’s valuation, etc.

    4. What is the difference between a lead manager and BRLM?

      No, the appointment of a reputed BRLM by a company does not guarantee the success of an IPO. The success of an IPO depends only on the participation of investors, the price band of the IPO, and the company’s valuation, etc.

    5. What is the difference between a lead manager and BRLM?

      Yes, a book-running lead manager can also underwrite the IPO of a company. 

  • What Is a Hot IPO?

    What Is a Hot IPO?

    Every few months, something happens in the Indian stock market that gets everyone talking: your colleague mentions it at lunch, your family WhatsApp group suddenly fills up with forwarded messages, and even people who have never opened a Demat account start asking questions. More often than not, the reason behind all this noise is a Hot IPO.

    Now, excitement is not always a bad thing. It brings new investors into the market, creates liquidity, and sometimes delivers good returns. 

    People have rushed into IPOs simply because everyone else seemed to be doing it, only to watch the stock fall below its issue price within weeks of listing.

    In this blog, we will walk you through what makes an IPO hot, who is driving that demand, and most importantly, whether all that excitement is actually backed by something real.

    What is a Hot IPO?

    An IPO, or Initial Public Offering, is when a company opens its doors to the general public for the first time and invites people to become part-owners by buying its shares. Think of it like a new restaurant opening in your city; if the excitement is strong enough before it even opens, people are already lining up outside.

    A Hot IPO is exactly that. It is an IPO that generates so much craze and interest among investors, even before the shares are listed on BSE or NSE, that people rush to apply in huge numbers.

    Why Does an IPO Become Hot?

    Not every IPO gets this kind of attention. A company earns this tag when investors genuinely believe it has something special going for it. This could be because of the following reasons:

    • The company is a household name, like when Zomato or LIC came out with their IPOs, practically every Indian investor was talking about it
    • It belongs to a sector that is booming at that time, whether it is fintech, defence, EVs, or renewable energy. 
    • The company has shown strong and consistent revenue growth over the past few years
    • Big institutional players like mutual funds and foreign investors have already shown interest
    • The promoters or founders have a proven track record that people trust

    Who Drives the Demand?

    The frenzy around a hot IPO is not just from one type of investor. It builds up from multiple sides at once:

    • Retail Investors: Everyday people like you and me, applying through platforms like Zerodha, Groww, or Upstox. The minimum application is usually one lot, and millions of people apply hoping to get an allotment.
    • High Net Worth Individuals (HNIs): Apply under the Non-Institutional Investor (NII) category. These are people investing above ₹2 lakhs. In hot IPOs, they often borrow money, called IPO financing, just to increase their chances of allotment.
    • Qualified Institutional Buyer (QIB): Mutual Funds and Insurance Companies fall under this category. When big institutions put in large bids, it signals to retail investors that the IPO is worth taking seriously.
    • Foreign Institutional Investors (FIIs): They also participate, and their interest often adds an extra layer of confidence among domestic investors.

    Does a Hot IPO Always Mean a Profitable IPO? 

    • A hot IPO creates a lot of listing day excitement, and many investors chase what the listing gains, the profit made on the very first day of trading if the share opens above its issue price. But listing day performance and long-term performance are two very different things. 
    • For Example, Paytm’s IPO in 2021 was one of India’s biggest ever and generated massive interest, yet it listed at a sharp discount and took years to recover. On the other hand, companies like Tata Technologies are listed at a strong premium and continue to perform reasonably well.
    • So while a hot IPO can absolutely give you quick gains, it can also burn you if you apply without understanding the business fundamentals. The heat of an IPO does not always reflect the health of a company.

    Read Also: What is the IPO Cycle

    Advantages of Hot IPO

    • Chance of Listing Gains: Many investors apply for hot IPOs, hoping the stock will list at a higher price than the issue price. If that happens, investors may earn quick gains on listing day, and if not they will eventually end up losing their initial investment amount also.
    • Invest Early in a Growing Company: An IPO gives investors an opportunity to become part of a company at an early stage of its listed journey. If the company grows well in the future, it may benefit long-term investors.
    • Exposure to Growing Sectors: Many popular IPOs come from industries that are growing quickly, such as technology, finance, renewable energy, or consumer businesses.

    Risks of Hot IPO

    • Strong Subscription Does Not Guarantee Returns: An IPO getting heavily subscribed does not always mean it will give profits in the future. Market conditions and the company’s financial performance still matter.
    • Limited Track Record: Some companies may not have a long history of profits or stable business performance, making it harder to judge their future growth.
    • Hype Can Influence Decisions: Many people apply for hot IPOs just because everyone else is talking about them. Investing without understanding the business can become risky.

    How to Evaluate the Hot IPO

    1. Understand the Company’s Business

    First, try to understand what the company does and how it earns money, its future growth potential, business model, and the ongoing demand. A strong and growing business usually attracts long-term investors.

    2. Check the Financial Performance

    Look at the company’s financial performance over the last few years. Important things that we need to check include:

    • Revenue growth
    • Profit growth
    • Debt levels
    • Cash flow
    • Overall financial stability

    Companies with consistent growth and healthy financials are generally considered stronger.

    3. Know Why the Company is Raising Money

    Read the purpose of the IPO carefully. Companies may raise funds for their business expansion, repaying debt, new projects or working capital needs. 

    If most of the money is going to existing shareholders instead of the business, investors should study the IPO more carefully.

    4. Look at Subscription Numbers

    Strong subscription numbers usually show investor interest in the IPO. Investors often track retail subscription, institutional subscription, and HNI subscription.

    But remember, high subscription alone does not guarantee good returns.

    5. Check the Grey Market Premium (GMP)

    GMP gives an idea about market sentiment before listing. A strong GMP may indicate positive demand, but it is unofficial and can change quickly. It should not be the only factor while making an investment decision.

    Read Also: What is the IPO Allotment Process?

    Conclusion 

    At the end of the day, a hot IPO is not just a financial event, it becomes almost a cultural moment in the Indian market. Hot IPOs have a way of pulling people into the market who would otherwise never have opened a Demat account.

    Undoubtedly, it brings energy, liquidity, and participation into the market. But excitement alone has never made anyone wealthy in the long run. Applying for an IPO because your colleague did, or because the GMP shot up overnight, is not investing. It is gambling with extra steps.

    So the next time a hot IPO lands in your social media feed, check the DRHP. Look at the valuation. Invest in IPOs with Pocketful and enjoy zero brokerage on delivery trades through an easy-to-use investing platform.

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    9ASBA Meaning, Benefits, and Process
    10Strategies To Boost Your IPO Allotment Chances

    Frequently Asked Questions (FAQs)

    1. What does oversubscription mean? 

      It means far more people applied than there are shares available. If an IPO is subscribed 80 times, it means investors applied for 80 times the number of shares on offer. 

    2. Can hot IPOs give good returns? 

      They certainly can, but there are no guarantees. The ultimate truth is that hype and reality do not always match.

    3. What is GMP in an IPO? 

      GMP stands for Grey Market Premium. It is the unofficial price at which IPO shares are being traded before they officially list. If an IPO has a GMP of ₹80 over an issue price of ₹500, it suggests people expect it to list around ₹580. 

    4. Can a hot IPO fall after listing? 

      Yes. Once the subscription excitement dies down and institutional investors begin booking profits, the price can correct sharply. 

    5. How can I check whether an IPO is good or not? 

      Start with the DRHP filed with SEBI, it is publicly available and contains everything from financial statements to business risks. 

  • Difference Between RII, NII, QIB and Anchor Investor in IPO

    Difference Between RII, NII, QIB and Anchor Investor in IPO

    Whenever you subscribe to an IPO, you must have come across different categories of investors, such as RIIs, NIIs, QIBs, Anchor investors, etc. Understanding these categories of investors is important to understanding how IPO allotment works and which category is suitable for you.

    In today’s blog post, we will give you an overview of the difference between RII, NII, QIB, and Anchor investors of IPO.

    What is RII (Retail Individual Investor)?

    Retail individual investors are those individual investors who invest in IPO by using their personal funds up to a specific limit of 2 Lakh INR. These individuals are generally salaried individuals, business owners, or students who wish to invest in an IPO but have a limited amount of capital. These investors play a key role in the capital market by increasing liquidity and investment activities. The number of retail participants has increased significantly in the past few years.

    • Investment Limit: Retail individual investors are only allowed to invest up to INR 2 Lakh into an IPO.
    • Reservation: A minimum of 35% of the total issue size of an IPO is set aside for Retail Individual Investors.
    • Basis of Allotment: In case the IPO is oversubscribed, the allotment is based on the lottery system.
    • Cut-Off Price: Retail individual investors can bid at the cut-off price.

    What is NII (Non-Institutional Investor)?

    Non-individual investor is a category of investor that includes individuals, companies, trusts, etc. They generally invest an amount larger than that of retail investors, but they are not classified as non-individual investors. Non-institutional investors invest more than 2 Lakh in an IPO; therefore, they are often known as High-networth individuals. This category of non-individual investors generally receives a separate allocation in the IPO issue size.

    • Investment Amount: Non-institutional investors will have to apply for more than INR 2 Lakh if they wish to invest in this category.
    • Reservation: A minimum of 15% of the total IPO issue size is to be kept in reserve for this category.
    • Cut Off Price: Unlike retail individual investors, non-individual investors are not able to bid at the cut-off pricing.
    • Sub-category: The NIIs are also divided into subcategories as Small NIIs investing from 2 Lakhs to 10 Lakhs, whereas Big NIIs need to bid for more than 10 Lakhs INR.

    What is QIB (Qualified Institutional Buyer)?

    Qualified institutional buyers are a category of large institutional investors who have a large amount of capital and have experience in investing in the financial market. Qualified Institutional Buyers are generally included organisations such as mutual funds, banks, insurance companies, foreign institutional investors and pension funds. In IPO issue size allocation, they have been allotted a separate allocation based on their knowledge, financial expertise and investment amount. They play a major role in maintaining the liquidity in the capital market. This category of investors is regulated by regulators such as the SEBI, etc.

    • Reservation: Qualified Institutional Buyers are generally allotted a quota of half of the total issue size.
    • Eligibility: Only SEBI-registered institutions are eligible to apply in this category.
    • Allotment: They have a guaranteed share in oversubscribed IPOs.
    • Withdrawal of Bid: QIBs are not allowed to withdraw their bids once the IPO is closed.

    Who is an Anchor Investor?

    An anchor investor is considered a large institutional investor who invests in an IPO before the IPO is made available for public subscription. The key reason why anchor investors are important is that they create confidence in IPO among other investors. These investors are usually Qualified Institutional Buyers, such as mutual funds, insurance companies, etc. They generally allot shares a day in advance before the IPO is opened for subscription for the general public. They typically need to go through a lock-in period as they cannot sell the allotted shares immediately after listing.

    • Minimum Investment: Anchor investors are required to invest a minimum of 10 Crore INR in an IPO.
    • Reservation: Anchor investors can reserve a maximum upto 60% of the QIB share.
    • CutOff Price: Anchor investors cannot bid at the cutoff price.

    Read Also: Difference Between Mainboard IPO and SME IPO

    Difference between RII, NII, QIB, and Anchor Investor

    The key difference between RII, NII, QIB, and anchor investor is as follows:

    ParticularsRIINIIQIBAnchor Investor
    Common NameRetail Individual InvestorNon-Institutional InvestorQualified Institutional BuyersAnchor Investor
    OverviewRII are the individual investors.These are high-value investors who invest more than retail investors.They are called large institutional investors.These are institutional investors who invest in IPO before their public issue date.
    Investment LimitRIIs can invest a maximum of upto INR 2 Lakhs.They need to invest more than 2 Lakhs.There is no fixed upper investment limit.Anchor investors are required to invest a minimum of 10 Crore INR.
    Risk AppetiteThey have a moderate risk profile.Their risk appetite is higher than the RIIs.They have professionally managed risk.They manage their risk through professionals.
    Lock-in PeriodThey do not have any lock-in period.There is no lock-in after IPO listing.Lock-ins are subject to regulations.A mandatory lock-in period for the anchor investors.
    IPO ReservationRIIs have an IPO reservation of 35%.NIIs have a reservation of atleast 15%.QIBs have a reservation of atleast 50% of the issue size.The reservation for the anchor investor is equal to the QIB quota.
    ExamplesRIIs include salaried individuals and small investors.It includes HNIs and wealthy investors.This generally includes mutual fund companies, pension funds, insurance funds, etc.Large domestic and foreign institutions consist of an anchor investor.

    Conclusion

    On a concluding note, RIIs, NIIs, QIBs and anchor investors consist of different categories of IPO investors. These investors are categorised based on their investment size and participation. Each of these investors plays an important role in the success of an IPO. Understanding these categories of investors helps you in analysing IPO subscription figures in a better manner. High participation of QIBs and anchor investors shows a positive momentum for the IPO. However, only the subscription figures do not always guarantee a successful IPO; along with this, there are other factors which one should consider, such as the company’s fundamentals, etc. Apply for IPOs directly through Pocketful and enjoy zero brokerage on delivery trades along with a seamless investing experience. And it is advisable to consult your investment advisor before making any investment in an IPO.

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    Frequently Asked Questions (FAQs)

    1. What is the maximum investment limit for a retail investor in an IPO?

      A retail investor can invest a maximum of up to INR 2 Lakh in an IPO as they fall under the retail investor category.

    2. Which category of investor gets the highest reservation in an IPO?

      The QIB or Qualified Institutional Buyers get the highest 50% reservation in the total IPO issue size.

    3. Can a person apply in both the NII and RII categories of IPO?

      No, a person cannot apply in both the NII and RII categories of IPO. If the retail investor’s application amount is beyond 2 Lakh, it automatically falls under the NII category.

    4. Can a company launch an IPO without an anchor investor?

      Yes, a company launch its IPO without an anchor investor.

    5. Is there any lock-in period for investors applying in the retail category?

      No, there is no lock-in period for retail investors applying for an IPO.

  • What Are the Different Types of IPO Investors

    What Are the Different Types of IPO Investors

    IPO investing in India has witnessed rapid growth over the past few years; however, even today, many investors apply for IPOs without fully understanding the various investor categories. Yet, factors such as allotment chances, investment limits, and IPO reservations depend entirely on the investor category. In this blog, we will explain all the key IPO categories – such as Retail, HNI, QIB, and Anchor Investors in simple language, enabling you to select the category best suited to your investment profile.

    What Are Investor Categories in IPO? 

    In an IPO, investors are categorized into different groups to ensure that the allotment process remains fair and that every type of investor gets an opportunity to participate. SEBI established this structure to enable the formulation of distinct reservations and rules for everyone ranging from retail investors to large institutions.

    Why SEBI Created IPO Categories?

    Purpose of IPO CategoriesBenefit to Market
    Fair AllocationAll investors get an opportunity to participate.
    Institutional ParticipationThe credibility of an IPO increases.
    Retail ReservationSmall investors remain protected.
    Better Demand AnalysisIPO pricing is more efficient.

    Main Types of Investors in IPO 

    In the IPO market, investors are categorized into different groups based on their investment amount and profile. Each category is assigned specific allotment rules, reservation quotas, and bidding processes.

    1. Retail Individual Investors (RII)

    Retail Individual Investors (RIIs) are investors who apply for shares worth up to ₹2 lakh in an IPO. This category includes Resident Indian Individuals, NRIs, and Hindu Undivided Families (HUFs). In Mainboard IPOs, typically at least 35% of the shares are reserved for retail investors. Retail investors also have the option to bid at the Cut-Off Price, which can improve their chances of allotment. If an IPO is oversubscribed, the allotment is typically carried out through a lottery system.

    Key Features of Retail Investors

    Feature Retail Investors
    Investment LimitUp to ₹2 lakh
    Allotment MethodLottery System
    Cut-Off Price OptionAvailable
    Reservation in IPOAround 35%
    Eligible InvestorsIndividuals, NRIs, HUFs

    2. Non-Institutional Investors (NII/HNI)

    This category is intended for investors who place bids exceeding ₹2 lakh in an IPO. Such investors are typically referred to as HNIs or NIIs. Compared to the Retail category, the investment amount here is significantly larger; consequently, the method of allotment also differs. SEBI has now bifurcated this category into two sub-segments. Investors applying for amounts ranging from ₹2 lakh to ₹10 lakh fall under the Small HNI (sNII) category, while those applying for amounts exceeding ₹10 lakh are placed in the Big HNI (bNII) category. In Mainboard IPOs, approximately 15% of the total allocation is reserved for this specific category.

    Key Features of NII/HNI Category

    Feature NII/HNI Investors
    Investment LimitAbove ₹2 lakh
    Allotment TypeProportionate Basis
    Cut-Off BiddingNot Available
    IPO ReservationAround 15%
    Suitable ForHigh Capital Investors

    3. Qualified Institutional Buyers (QIBs)

    Qualified Institutional Buyers (QIBs) are large financial institutions authorized by SEBI to make investments. This category includes entities such as Mutual Funds, Banks, Insurance Companies, Pension Funds, and Foreign Portfolio Investors (FPIs). These investors are considered highly significant in the IPO market, as their investment decisions influence overall market sentiment.

    In Mainboard IPOs, approximately 50% of the allocation is reserved for the QIB category. These investors make investment decisions only after conducting a detailed analysis of the company’s financial position, valuation, and growth potential. For this very reason, many retail investors also closely track QIB subscription data before applying for an IPO.

    Key Features of QIB Category

    Feature QIB Investors
    Investor TypeInstitutional Investors
    IPO ReservationAround 50%
    Investment SizeVery Large
    Market InfluenceHigh
    Suitable ForInstitutions

    4. Anchor Investors

    Anchor investors are major financial investors who invest capital in a company even before its IPO opens. This group primarily comprises mutual funds, insurance companies, and foreign investment firms. When large institutions invest in an IPO, it often draws the attention of numerous smaller investors as well. Anchor investors are allotted shares prior to the public opening and are required to hold them for a specific period. However, applying for an IPO solely based on the names of major investors is not considered a prudent decision; understanding the company’s business model and valuation is equally essential.

    Key Features of Anchor Investors

    FeatureAnchor Investors
    Investor TypeInstitutional Investors
    Investment TimingBefore IPO Opening
    CategoryPart of QIB
    Lock-In PeriodApplicable
    Main PurposeBuild Market Confidence

    5. Employee Reservation Category

    In certain IPOs, companies reserve a portion of shares specifically for their employees. This is referred to as the Employee Reservation Category. The objective behind this is to provide employees with an opportunity to participate in the company’s growth. This category is predominantly observed in large corporate IPOs and startup IPOs.Many companies also offer a discount on the issue price to their employees, enabling them to acquire shares at a comparatively lower cost. Competition within the Employee category is typically lower; consequently, the chances of allotment may be higher.

    Key Features of Employee Category

    Feature QIB Investors
    Eligibility Company Employees
    Reservation Separate Quota
    Discount Available in Some IPOs
    Competition Usually Lower
    Best BenefitBetter Allotment Chances

    6. Shareholder Reservation Category

    Some companies reserve a portion of shares in their IPOs specifically for existing shareholders. This is referred to as the Shareholder Reservation Category. Investors who already hold shares of the company’s parent or group company prior to the IPO launch are eligible to benefit from this category.

    To apply under the Shareholder Category, the eligible shares must be held in one’s account prior to the record date. Competition within this quota is often lower compared to the retail category; consequently, the likelihood of receiving an allotment may be higher.

    Key Features of Shareholder Category

    Feature QIB Investors
    EligibilityExisting Shareholders
    Reservation TypeSeparate Quota
    CompetitionUsually Lower
    Main BenefitBetter Allotment Chances
    Suitable ForLong-Term Investors

    Read Also: Mainboard & SME IPO Eligibility Criteria

    Difference Between RII, HNI, QIB & Anchor Investors 

    In an IPO, the investment size, allotment process, and participation differ for each investor category.

    Basis of DifferenceRetail Investors (RII)HNI/NII InvestorsQIB InvestorsAnchor Investors
    Investment LimitUp to ₹2 LakhsMore than ₹2 lakhA massive investmentLarge Investment Before IPO
    Investor TypeIndividual InvestorsHigh Net-worth InvestorsFinancial InstitutionsInstitutional Investors
    Allotment ProcessLottery BasisProportionate BasisInstitutional AllocationPre-IPO Allocation
    Cut-Off Price OptionAvailableNot availableNot availableNot available
    IPO ReservationApproximately 35%Approximately 15%Approximately 50%Part of the QIB category
    Risk LevelModerate High Professional LevelProfessional Level
    Competition LevelToo muchModerate to HighLimited InstitutionsSelected Institutions
    Investment GoalListing Gains & Long-Term InvestmentHigher AllocationStrategic InvestmentBuilding Market Confidence

    Which IPO Investor Category is Best for Beginners? 

    If you are investing in an IPO for the first time, the Retail Investor category is considered the most suitable option. Under this category, one can apply for an amount of up to ₹2 lakhs; thus, IPO investing can be initiated even with limited capital. Furthermore, the availability of an option to bid at the Cut-Off Price simplifies the application process. In contrast, the HNI category requires the investment of a substantial amount, and the associated risk is comparatively higher. Therefore, for beginners, the Retail category is considered a more practical and manageable option to start with.

    Investor ProfileSuitable IPO Category
    Beginner InvestorsRetail Category
    Moderate Capital InvestorsRetail + Shareholder Category
    Experienced InvestorsHNI/NII Category
    Institutional ParticipantsQIB Category

    Common Mistakes IPO Investors Make 

    Many investors, in their pursuit of quick profits from IPOs, make certain common mistakes that increase the risk of financial loss. It is crucial to understand these errors before applying for an IPO.

    • Applying Solely Based on GMP: While the Grey Market Premium (GMP) can be a useful indicator, investing in an IPO based solely on this factor is not considered a sound strategy.
    • Ignoring Company Valuation: Often, a company’s valuation is already quite expensive, yet investors frequently overlook this critical aspect.
    • Neglecting QIB Subscription Data: Institutional demand plays a key role in gauging the overall sentiment surrounding an IPO; therefore, QIB subscription data should not be ignored.
    • Applying with Borrowed Funds: Applying for an IPO using loans or borrowed capital can be risky, particularly if the listing performance turns out to be weak.
    • Applying for Every IPO: Not every IPO presents a good investment opportunity. It is essential to thoroughly evaluate the company’s fundamentals and the quality of its business operations.
    • Important Point: In IPO investing, maintaining discipline and conducting proper research often yield far better results than chasing short-term hype.

    Read Also: Different Types of IPO in India

    Important IPO Terms Investors Should Know

    Many investors, in their pursuit of quick profits from IPOs, make certain common mistakes that increase the risk of financial loss. It is crucial to understand these errors before applying for an IPO.

    • Applying Solely Based on GMP: While the Grey Market Premium (GMP) can be a useful indicator, investing in an IPO based solely on this factor is not considered a sound strategy.
    • Ignoring Company Valuation: Often, a company’s valuation is already quite expensive, yet investors frequently overlook this critical aspect.
    • Neglecting QIB Subscription Data: Institutional demand plays a key role in gauging the overall sentiment surrounding an IPO; therefore, QIB subscription data should not be ignored.
    • Applying with Borrowed Funds: Applying for an IPO using loans or borrowed capital can be risky, particularly if the listing performance turns out to be weak.
    • Applying for Every IPO: Not every IPO presents a good investment opportunity. It is essential to thoroughly evaluate the company’s fundamentals and the quality of its business operations.
    • Important Point: In IPO investing, maintaining discipline and conducting proper research often yield far better results than chasing short-term hype.

    Conclusion 

    In an IPO, each investor category has a distinct role and allotment process. The retail category is generally considered more suitable for beginners, whereas the HNI and QIB categories are better suited for large-scale investors. Before applying for an IPO, it is essential to understand not only the market hype but also the specific category rules and the company’s fundamentals. Invest in IPOs with zero brokerage on Pocketful. Open your Demat account with Zero AMC charges and enjoy a seamless investing experience with advanced trading tools and smart market insights. 

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    4Performance Of IPOs Launched
    5OFS vs IPO: Key Differences and Benefits
    6Apply in IPO Through ASBA- IPO Application Method
    7What Is An IPO Mutual Fund? Should You Invest?
    8What is IPO Listing Time?
    9Strategies To Boost Your IPO Allotment Chances
    10From Private to Public: Decoding the IPO Journey
    11Why Invest in an IPO and its Benefits?

    Frequently Asked Questions (FAQs)

    1. What is the Retail Investor category in an IPO?

      The Retail category includes those who invest up to ₹2 lakh in an IPO.

    2. What is the HNI category in an IPO?

      The HNI category is for investors who apply for more than ₹2 lakh in an IPO.

    3. What is a QIB in an IPO?

      QIBs are large institutions, such as mutual funds, banks, and insurance companies.

    4. What is the role of Anchor Investors in an IPO?

      Anchor investors work to increase market confidence by investing before the IPO opens.

    5. Can I apply above ₹2 lakh in the Retail category?

      No, if you apply for more than ₹2 lakh, your application falls into the HNI category.

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