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Shivashrit Foods Ltd. IPO Day 1: GMP & Subscription Status

Shivashrit Foods Ltd. has launched its SME IPO today, August 22, 2025, with an issue size of ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and an offer-for-sale of ₹8.75 crore. The IPO will remain open for subscription till August 26, 2025, and the shares are scheduled to list on the NSE SME (Emerge) platform on September 1, 2025.

Shivashrit Foods IPO – Day 1 Subscription Status

As of Day 1, subscription numbers indicate low demand, with overall subscriptions at 0.24×. Non-Institutional Investors (NII) led with 0.57×, Retail Individual Investors (RII) participated at 0.23×, while Qualified Institutional Buyers (QIB) showed no interest (0.00×).

Investor Category	Subscription (×)
Qualified Institutional Buyers (QIB)	0.00
Non-Institutional Investors (NII)	0.57
bNII (above ₹10 lakh)	0.76
sNII (less than ₹10 lakh)	0.19
Retail Individual Investors (RII)	0.23
Total Subscriptions	0.24

Total Applications: 216
Total Bid Amount: ₹11 Cr.

Objective of the Shivashrit Foods IPO

The funds raised will be used to finance expansion projects, strengthen working capital, and support general corporate needs, enabling the company to scale its operations efficiently.

Objects of the Issue	Expected Amount (in Millions)
Capital Expenditure (“Expansion Project”)	263
Working Capital Requirement for Expansion Project	190
General Corporate Purpose	–

Shivashrit Foods IPO GMP – Day 1 Update

At the end of its first day, the IPO had a Grey Market Premium (GMP) of ₹5, resulting in an estimated listing price of ₹147. This translated to a modest listing gain of 3.52%, indicating a cautious but positive market response.

Date	GMP (₹)	Estimated Listing Price (₹)	Gain (%)
August 22, 2025 (Day 1)	₹5	₹147	3.52%

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.

Shivashrit Foods Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹135–₹142 per share
Total Issue Size	₹70.03 crore (Fresh: ₹61.29 Cr; OFS: ₹8.75 Cr)
Lot Size	1,000 shares
Listing Platform	NSE SME
Registrar	Maashitla Securities Pvt. Ltd.

Important Dates for Shivashrit Foods IPO Allotment

Event	Date
Tentative Allotment	August 28, 2025
Refunds Initiation	August 29, 2025
Credit of Shares to Demat	August 29, 2025
Listing Date on NSE SME	September 1, 2025

Shivashrit Foods Ltd. Overview

Incorporated in 2017 and headquartered in Aligarh, Uttar Pradesh, Shivashrit Foods Ltd. is engaged in the production, supply, and export of premium potato flakes used in ready-to-eat meals, snacks, and processed foods. Its processing facility holds multiple certifications including FSSAI, ISO 22000, HALAL, BRCGS, and USFDA, ensuring global standards of quality. The company markets its products both domestically and internationally, catering to rising demand in the food processing sector.

Financially, Shivashrit Foods has demonstrated strong growth momentum, with revenue increasing from ₹77.55 crore in FY2024 to ₹105.85 crore in FY2025, while PAT rose from ₹11.61 crore to ₹12.06 crore during the same period.

Easy Steps to Apply for Shivashrit Foods IPO via Pocketful

Install the Pocketful Trading App from the Play Store or App Store.
Sign up and complete your KYC
Navigate to the IPO section on the app
Find “Shivashrit Foods” in the listing
Tap Apply and enter your bid details

Frequently Asked Questions (FAQs)

When does the Shivashrit Foods IPO open and close?
The IPO opens on August 22, 2025, and closes on August 26, 2025.
What is the price band?
Price band for the IPO is set at ₹135 to ₹142 per share.
What is the issue size and structure?
Total size is ₹70.03 crore, comprising a fresh issue of ₹61.29 crore and OFS of ₹8.75 crore.
When will the listing happen?
Shares of Shivashrit Foods will list on September 1, 2025, on NSE SME.
What are the IPO objectives?
Funds will be used for expansion capital expenditure, working capital needs, and general corporate purposes.

August 22, 2025

Classic Electrodes IPO Day 1: GMP & Subscription Status

Classic Electrodes (India) Ltd.’s IPO is a fresh issue of ₹41.51 crore, with a price band of ₹82–₹87 per share. Bidding opens on August 22, 2025, and closes on August 26, 2025. The shares will be listed on NSE SME on September 1, 2025.

Classic Electrodes IPO – Day 1 Subscription Status

Classic Electrodes IPO subscribed 1.95 times and received 2.70x subscription in the individual investors category, 1.03x in QIB (Ex Anchor), and 1.42x in the NII category on Day 1 i.e. August 22, 2025.

Investors Category	Subscription (×)
Qualified Institutional Buyers (QIB)	1.03
Non-Institutional Investors (NII)	1.42
bNII (above ₹10 lakh)	1.25
sNII (less than ₹10 lakh)	1.77
Retail Individual Investors (RII)	2.70
Total Subscriptions	1.95

Total Applications: 1,435
Total Bid Amount: ₹53 Cr.

Objective of the Classic Electrodes IPO

The primary objectives of the IPO are to fund capital expenditures, repay outstanding borrowings, meet working capital requirements, and support general corporate purposes.

Objects of the Issue	Expected Amount (in Millions)
Funding capital expenditure of our company to purchase Plant and Machinery	100
Repayment of a portion of certain outstanding borrowing availed by the company	100
Funding the working capital requirements of the company	166
General Corporate Purposes	–

Classic Electrodes IPO GMP – Day 1 Update

On August 22, 2025, the IPO showed a Grey Market Premium (GMP) of ₹20, translating to an estimated listing price of ₹107. This resulted in a healthy listing gain of 22.99% for investors, signaling strong market enthusiasm for the IPO.

Date	GMP	Est. Listing Price	Gain
August 22, 2025 (Day 1)	₹20	₹107	22.99%

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.

Classic Electrodes (India) Ltd. IPO – Key Details

Particulars	Details
IPO Opening Date	August 22, 2025
IPO Closing Date	August 26, 2025
Price Band	₹82–₹87 per share
Total Issue Size	₹41.51 crore (Fresh Issue)
Lot Size	1,600 shares
Listing Platform	NSE SME
Registrar	MUFG Intime India Pvt. Ltd.

Important Dates for Classic Electrodes IPO Allotment

Event	Date
Tentative Allotment	Thu, Aug 28, 2025
Initiation of Refunds	Thu, Aug 28, 2025
Credit of Shares to Demat	Fri, Aug 29, 2025
Listing Date on NSE SME	September 1, 2025

Classic Electrodes (India) Ltd. Overview

Established in 1997 and headquartered in Kolkata, West Bengal, Classic Electrodes (India) Limited is a leading manufacturer of welding consumables, including electrodes and MIG wires, catering to both domestic and international markets. The company offers a wide range of products such as mild steel, stainless steel, cast iron, deep penetration electrodes, and MIG wires for varied industrial applications. With two manufacturing units located in Dhulagarh, West Bengal, and Jhajjar, Haryana, it ensures strong regional coverage and efficient logistics, while the earlier Bahadurgarh unit was closed in FY 2023–24 as part of restructuring.

Easy Steps to Apply for Classic Electrodes IPO via Pocketful

Step 1: Install the Pocketful app from the Play Store or App Store.
Step 2: Complete your KYC process.
Step 3: Go to the IPO section on the app
Step 4: Find “Classic Electrodes” in the IPO list
Step 5: Tap Apply and enter your bid details

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Classic Electrodes IPO?
The IPO opens on August 22, 2025, and closes on August 26, 2025.
What is the price band for the IPO?
The price band is set between ₹82 and ₹87 per share.
What is the issue size of the IPO?
The IPO size is ₹41.51 crore (fresh issue only).
When will the shares be listed?
Shares are expected to be listed on NSE SME on September 1, 2025.
What is the GMP of Classic Electrodes IPO on Day 1?
The GMP at the close of Classic Electrodes IPO on Day 1 was ₹20.

August 22, 2025

Mangal Electrical IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Mangal Electrical Industries Limited, a Jaipur-based manufacturer of transformer components and customized power-infrastructure solutions, is closing its ₹400 crore IPO today, August 22, 2025. The issue is a fresh issue only, with a price band of ₹533–₹561 per share. Following allotment, shares are scheduled to list on BSE and NSE on August 28, 2025.

Mangal Electrical IPO – Day 3 Subscription Status

The IPO was oversubscribed 9.95x overall, with Non-Institutional Investors (NII) leading at 19.78x and Qualified Institutional Buyers (QIB) subscribing 11.09x. Retail Individual Investors (RII) showed moderate interest at 5.09x.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	11.09
Non-Institutional Investors (NII)	19.78
bNII (above ₹10 lakh)	20.05
sNII (less than ₹10 lakh)	19.23
Retail Individual Investors (RII)	5.09
Total	9.95

Total Applications: 4,47,732

How to Check Mangal Electrical IPO Allotment Status

The allotment status can be checked online either via the Registrar’s website (Bigshare Services Pvt.Ltd.) or the BSE website.

Method 1: Registrar’s Website

Steps to check:

Visit the Bigshare Services Pvt.Ltd. IPO allotment page.
Select “Mangal Electrical Industries IPO” from the dropdown.
Enter your PAN, Application Number, or Demat/DP Client ID.
Complete the captcha and click Submit/Search.
Your allotment status will be displayed.

Method 2: BSE Website

Steps to check:

Visit the BSE IPO allotment page.
Select the Equity segment and choose “Mangal Electrical Industries IPO.”
Enter PAN and Application Number (plus captcha, if any).
Click Submit to view allotment status.

Objective of the Mangal Electrical IPO

Mangal Electrical plans to deploy the IPO proceeds primarily for debt repayment, capacity expansion at its Unit IV facility in Rajasthan, and meeting working capital needs. A portion will also be set aside for general corporate purposes, strengthening its overall financial flexibility.

Objects of the Issue	Expected Amount (₹ in crores)
Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the Company	101.27
Capital expenditure including civil works of the Company for expanding the facility at Unit IV situated at Reengus, Sikar District, Rajasthan	87.86
Funding working capital requirements of the Company	122.00
General corporate purposes	–

Mangal Electrical IPO GMP – Day 3 Update

The last reported GMP for Mangal Electrical IPO is ₹16, last updated on August 22, 2025, 05:00 PM. With the upper price limit of ₹561, the IPO’s estimated listing price is ₹577. The expected percentage gain per share is 2.85%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
22-08-2025 (DAY 3)	₹16	₹577	2.85%

Mangal Electrical IPO – Key Details

Particulars	Details
IPO Opening Date	August 20, 2025
IPO Closing Date	August 22, 2025
Price Band	₹533–₹561 per share
Issue Size	₹400 crore (Fresh Issue)
Lot Size	26 shares
Listing Platform	BSE & NSE
Registrar	Bigshare Services Pvt.Ltd.
Mangal Electrical IPO RHP	Click Here

Important Dates for Mangal Electrical IPO Allotment

Event	Date
Tentative Allotment	August 25, 2025
Refunds Initiation	August 26, 2025
Credit of Shares to Demat	August 26, 2025
Listing Date	August 28, 2025

Mangal Electrical Overview

Mangal Electrical Industries Ltd., founded in 1990 and based in Rajasthan, is a leading player in the electrical equipment manufacturing sector, specializing in transformers, cables, conductors, and other power transmission and distribution solutions. Its products cater to utilities, industrial clients, and infrastructure projects, ensuring reliable power distribution across markets. With multiple facilities, including an expanding Unit IV in Reengus, the company continues to scale its operations. Between FY24 and FY25, revenue grew by 22% while profit after tax surged 126%, reflecting strong growth momentum. Supported by a diversified product portfolio and operational efficiency, Mangal Electrical has built a resilient market position.

Frequently Asked Questions (FAQs)

What are the opening and closing dates of the Mangal Electrical IPO?
The IPO opened on August 20, 2025, and closed on August 22, 2025.
What is the price band of the IPO?
The price band is set at ₹533–₹561 per share.
What is the issue size of the IPO?
The IPO size is ₹400 crore, entirely a fresh issue.
When will the shares list?
The shares are expected to list on August 28, 2025, on BSE and NSE.
What are the objectives of the IPO?
Proceeds will be used for debt repayment, capacity expansion, funding working capital requirements and general corporate purposes.

August 22, 2025

Gem Aromatics IPO Allotment Status: Check Latest GMP, Steps to Verify Status

Gem Aromatics Limited, a leading manufacturer of specialty ingredients such as essential oils, aroma chemicals, and value-added derivatives, concluded the subscription for its ₹451.25 crore IPO on August 21, 2025. The issue comprised a fresh issue of ₹175 crore and an offer-for-sale (OFS) of up to ₹276.25 crore. The price band was set at ₹309–₹325 per share. Following allotment, the shares are scheduled to be listed on BSE and NSE on August 26, 2025.

Gem Aromatics IPO – Day 3 Subscription Status

The final day of bidding saw strong investor participation across categories. Below is the detailed subscription status as of Day 3:

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	53.76
Non-Institutional Investors (NII)	45.96
bNII (above ₹10 lakh)	48.48
sNII (less than ₹10 lakh)	40.91
Retail Individual Investors (RII)	10.49
Total	30.45

Total Applications: 10,59,134

How to Check Gem Aromatics IPO Allotment Status

Gem Aromatics IPO allotment can be checked online using the Registrar’s website (Kfin Technologies Ltd.) or via the BSE website.

Method 1: Registrar’s Website (Kfin Technologies Ltd.)

Steps to check:

Visit the Kfin Technologies Ltd. IPO allotment site.
Select “Gem Aromatics Limited IPO” from the dropdown.
Enter your PAN, Application Number, or Demat/DP Client ID.
Complete any captcha if prompted and click Submit/Search.
Allotment status will be displayed.

Method 2: BSE or NSE Website

Steps to check:

Visit the BSE or NSE IPO/allotment webpage.
Select the Equity segment, then choose “Gem Aromatics Limited IPO”.
Input your PAN and Application Number (and captcha, if any).
Click Search/Submit to view your allotment status.

Objective of the Gem Aromatics IPO

The company plans to utilize the net proceeds of the IPO towards strengthening its balance sheet by reducing debt and supporting future business needs. The funds will also be deployed for general corporate purposes, providing additional financial flexibility.

Objects of the Issue	Expected Amount (₹ in crores)
Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited	140.00
General Corporate Purposes	–

Gem Aromatics IPO GMP – Day 3 Update

Gem Aromatics IPO last GMP is ₹28, last updated Aug 21st 2025 04:58 PM. With the upper limit of price band at ₹325, Gem Aromatics IPO’s estimated listing price is ₹353. The expected percentage gain/loss per share is 8.62%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
21-08-2025 (DAY 3)	₹28	₹353	8.62%

Gem Aromatics IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Price Band	₹309–₹325 per share
Issue Size	₹451.25 crore (Fresh: ₹175 Cr, OFS: ₹276.25 Cr)
Lot Size	46 shares
Listing Platform	BSE & NSE
Registrar	Kfin Technologies Ltd.
Gem Aromatics IPO DRHP	Click Here

Important Dates for Gem Aromatics IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

Gem Aromatics Overview

Gem Aromatics Limited, incorporated in October 1997, is a long-established manufacturer of specialty ingredients like essential oils, aroma chemicals, and value-added derivatives. It offers about 70 products across four categories: mint and mint derivatives, clove and its derivatives, phenol, and other synthetic/natural ingredients. The company serves domestic and global markets (18 countries), through its manufacturing facilities in Budaun (UP), Silvassa, and Dahej, and maintains strong R&D and innovation capabilities.

Frequently Asked Questions (FAQs)

Q1. What is the opening and closing date of the Gem Aromatics IPO?
The Gem Aromatics IPO opens on August 19, 2025, and closes on August 21, 2025.
What is the price band of the Gem Aromatics IPO?
The price band for the IPO is set between ₹309 and ₹325 per share.
What is the total issue size of the Gem Aromatics IPO?
The total issue size is ₹451.25 crore, comprising a fresh issue of ₹175 crore and an Offer for Sale (OFS) worth ₹276.25 crore.
What is the expected listing date of Gem Aromatics?
The shares are expected to be listed on BSE and NSE on August 26, 2025.
What are the objectives of the Gem Aromatics IPO?
The proceeds will be used for repayment or prepayment of certain outstanding borrowings of the company and its subsidiary, Krystal Ingredients Private Limited, as well as for general corporate purposes.

August 22, 2025

LGT Business Connextions IPO Allotment Status: Check Latest GMP, Steps to Verify Status

LGT Business Connextions Limited, a service aggregator in the travel and tourism industry, will close the subscription for its ₹28.09 crore IPO today. The issue comprises a fresh issue, an Offer for Sale (OFS), and a reserved portion for market makers, at a fixed price of ₹107 per share. The subscription window runs from August 19 to August 21, 2025. Following allotment, the company’s shares are scheduled to be listed on the BSE SME on August 26, 2025.

LGT Business Connextions IPO Day 3 Subscription Status

LGT Business Connextions IPO subscribed 1.25 times. The public issue subscribed 1.75 times in the individual investors category and 0.75 times in the NII category by August 21, 2025.

Investor Category	Subscription (x)
Non-Institutional Investors (NII)	0.75
Retail Individual Investors (RII)	1.75
Total	1.25

Total Applications: 1,054

How to Check LGT Business Connextions IPO Allotment Status

LGT Business Connextions IPO allotment can be checked online using the Registrar’s website (Skyline Financial Services Pvt. Ltd.) or via the BSE website.

Method 1: Registrar’s Website (Skyline Financial Services Pvt. Ltd.)

This is the most reliable way to check your allotment status:

Steps to check:

Visit the official Skyline Financial Services Pvt. Ltd. IPO Website.
Select “LGT Business Connextions Limited” from the issuer dropdown.
Enter your PAN number, Application number, or DP/Client ID (Demat account number).
Complete the captcha (if prompted), then click Submit or Search.
Your allotment status will be displayed on the screen.

Method 2: BSE Website

If the registrar’s site is busy, you can also check via the BSE SME allotment portal:

Steps to check:

Go to the BSE IPO allotment page under the ‘Equity’ segment.
Select “LGT Business Connextions Limited” from the IPO list.
Enter your PAN number and Application number (and captcha, if any).
Click on Search/Submit to view your allotment status.

Objective of the LGT Business Connextions IPO

The objective of the LGT Business Connextions IPO is to raise funds for capital expenditure, meeting working capital requirements, and general corporate purposes. This will strengthen the company’s operations, support future expansion, and provide overall financial flexibility.

Objects of the Issue	Expected Amount (₹ in crores)
Capital Expenditure	10.44
Working Capital Requirement	7.70
General Corporate Purpose	3.79

LGT Business Connextions IPO GMP – Day 3 Update

LGT Business Connextions SME IPO last GMP is ₹0, last updated Aug 21st 2025 04:57 PM. With the price band of 107.00, LGT Business Connextions SME IPO’s estimated listing price is ₹107 (cap price + today’s GMP).The expected percentage gain/loss per share is 0.00%.

Date	GMP (₹)	Est. Listing Price (₹)	Gain (%)
21-08-2025 (DAY 3)	₹0	₹0	0%

LGT Business Connextions IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Issue Price	₹107 per share
Total Issue Size	26,25,600 shares(aggregating up to ₹28.09 Cr)
Listing Platform	BSE
Registrar	Skyline Financial Services Pvt.Ltd.
LGT Business Connextions IPO RHP	Click Here

Important Dates for LGT Business Connextions IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

LGT Business Connextions Overview

LGT Business Connextions Limited is a Chennai-based service aggregator in the travel and tourism sector, offering end-to-end solutions across MICE travel, cruise and hotel bookings, sightseeing, visa assistance, and customized tour packages for corporates and individuals. Established in 2016, the company leverages its integrated services to cater to both domestic and international clients, ensuring seamless travel experiences. Its diversified offerings position it as a one-stop solution for business and leisure travel needs. Between FY 2024 and FY 2025, revenue increased by 13% and profit after tax (PAT) rose by 44%, supported by strong operating efficiency and robust demand in the travel and tourism sector.

FAQs (Frequently Asked Questions)

What is the opening and closing date of the LGT Business Connextions IPO?
The LGT Business Connextions IPO opens on August 19, 2025, and closes on August 21, 2025.
What is the price band of the LGT Business Connextions IPO?
The IPO is a fixed-price issue, priced at ₹107 per share.
What is the total issue size of the LGT Business Connextions IPO?
The total issue size is approximately ₹28.09 crores, consisting of a fresh issue of around ₹23.87 crores, offer for sale (OFS) of ₹2.81 crores & ₹1.41 Crores Reserved for Market Maker.
What is the expected listing date of LGT Business Connextions?
The shares are expected to be listed on BSE SME on August 26, 2025.
What is the Grey Market Premium (GMP) of the LGT Business Connextions IPO today?
The current Grey Market Premium (GMP) for the IPO is nil (₹0), indicating no premium.

August 22, 2025

What Is Black-Scholes Model: Meaning, Formula & Benefits

Have you ever wondered how the correct price of an option is determined? In the world of trading, the Black-Scholes Model has provided a mathematical solution to this question. It is a mathematical model that helps in finding the correct value of a European option. Today, this model is used by traders, investment banks and fund managers around the world.

In this blog, we will understand in simple language what is Black-Scholes model, its formula, assumptions, strengths and limitations of Black-Scholes option pricing model.

What Is Black-Scholes Model?

The Black-Scholes Model is a mathematical method for calculating the theoretical price of a European option. It was developed in 1973 by Fischer Black and Myron Scholes, with later contributions from Robert Merton. For the first time, the model gave traders a scientific way to calculate what the “fair value” of an option should be.

The Black-Scholes option pricing model is still one of the most widely used models in the world, especially for pricing stock options and other derivative instruments. It is used by major investment banks, trading firms and portfolio managers to make the right decisions at the right time. The model focuses on :

1. Current Price

This is the actual market price of the underlying asset at the time when you are calculating the value of the option. As the price moves up or down, the option price is also directly affected.

2. Strike Price

The strike price is the price at which the option holder can buy or sell the stock in the future. For a call option, if the stock price is higher than the strike price, the option becomes more valuable. For a put option, the opposite is true—the higher the strike price, the higher the value.

3. Time to Expiry

This tells how much time is left till the maturity of the option (in years). The more time is left, the higher is the value of the option because the scope of favorable price movement is larger.

4. Volatility

Volatility means the possibility of fluctuations in the stock price.

Higher volatility means more uncertainty and therefore the option may be more expensive because its potential payoff is higher.In the Black-Scholes model, volatility is assumed to be constant.

5. Risk-Free Interest Rate

This is the interest rate that an investor can get without any risk (such as government bonds). This shows how much the future payout of the option should be discounted in today’s terms. Higher rates mean the value of the option may be affected.

Using all these factors, the Black-Scholes model determines what the fair price of an option should be. Now in the further sections we will understand its formula and real-life examples in detail.

The Black-Scholes Formula

The Black-Scholes model is used to calculate the theoretical price of European style call and put options. The formulas for both are different but the base variables remain the same.

Black-Scholes Formula:

Option Type	Formula
Call Option (C)	C = SN(d1) − Xe^(−rt)*N(d2)
Put Option (P)	P = Xe^(−rt)N(−d2) − S*N(−d1)

Variables and their meaning (applicable to both Call and Put):

Symbol	Represents	Simple Explanation
S	Current Stock Price	The market price of the stock at the time of option pricing
X	Strike Price	The predetermined price at which the option can be exercised in the future
r	Risk-Free Interest Rate	The return on a risk-free investment
t	Time to Expiry (in years)	The time remaining until the option’s expiration
σ	Volatility	The expected fluctuation or variability in the stock price
N(d1),N(d2)	Standard Normal Distribution	The probability values derived from the standard normal distribution curve
d1	Intermediate Calculation	[ ln(S / X) + (r + σ² / 2) × t ] / (σ × √t)
d2	Intermediate Calculation	d1 – σ × √t

Example: Call Option Price Using Black-Scholes

Parameter	Value
Nifty Spot Price (S)	25100
Strike Price (X)	25000
Time to Expiry (T)	15 days = 15/365 = 0.041
Risk-free rate (r)	6.9% = 0.069
Volatility (σ)	13% = 0.13

Step 1: d1

d1 = [ ln(S/X) + (r + σ²/2) × T ] / (σ × √T)

= [ ln(25100 / 25000) + (0.069 + 0.13² / 2) × 0.0411 ] / (0.13 × √0.0411)

= [ 0.00399 + (0.069 + 0.00845) × 0.0411 ] / (0.13 × 0.2027)

= [ 0.00399 + 0.00317 ] / 0.02635

= 0.00716 / 0.02635 = 0.272

Step 2: Calculate d2

d2 = d1 – σ × √T

= 0.272 – 0.13 × 0.2027

= 0.272 – 0.02635 = 0.2457

Step 3: Find N(d1) and N(d2)

N(d1) = 0.6069

N(d2) = 0.5969

Step 4: Calculate Call Option Price

Call = S × N(d1) – X × e^(-rT) × N(d2)

= 25100 × 0.6069 – 25000 × e^(-0.069 × 0.0411) × 0.5969

= 15245.2 – 25000 × 0.9972 × 0.5969

= 15245.2 – 14918.4 = ₹326.8

Final Answer : Call Option Premium (Strike ₹25000) = ₹326.8

Benefits of the Black-Scholes Model

The benefits of Black-Scholes Model are given below:

Fast and standard way to know Option Price : The Black-Scholes model gives a formula that allows you to calculate the price of options quickly and in a standard way. This helps traders to take fast decisions.
Accepted Model in Global Financial Industry : This model is accepted and used by banks, institutions and analysts around the world. Its credibility is quite strong, which makes it easy for practical use.
Makes it easy to compare different options : With the help of Black-Scholes, you can compare options of different stocks and expiry dates. This shows which option is more valuable.
Foundation of Advance Financial Models : This model is the base of many advanced models like Binomial tree, Monte Carlo simulation. Meaning, this is a foundational concept that is important to understand.
Helps in catching market inefficiencies : When the actual market price of an option is higher or lower than the theoretical price, this model can tell if there is some mispricing happening in the market.

Strengths and Limitations of the Black-Scholes Model

Strengths

Precise and Quick Pricing : This model helps calculate the theoretical value of the option quickly and accurately, which is very useful for real-time trading decisions.
Globally Accepted Standard : Black-Scholes is the most widely used option pricing model worldwide. Institutions, hedge funds, and traders use it as a benchmark.
Mathematical Simplicity : Its formula may seem complex, but when the variables are right, its calculation is simple and repeatable. It can be easily implemented with Excel or programming tools.

Limitations

Constant Volatility Assumption : Black-Scholes assumes that the volatility of the stock remains constant, whereas in the real world volatility keeps changing over time. This is a big limitation.
Only for European Options : This model applies only to European options that can be exercised only at expiry.
No Transaction Costs : The model assumes that there is no brokerage or transaction cost. But in real trading there are charges that affect the option price.
Ignore Sudden Events : This model does not consider events like unexpected news, market crashes or earnings announcements, which can change the volatility of the asset significantly and cause a difference between the actual price and the model price of the option.

Conclusion

The Black-Scholes Model remains one of the most reliable frameworks for determining the theoretical value of options. While it is based on certain ideal assumptions, it continues to be highly relevant in real-world trading and risk management. For anyone looking to deepen their understanding of options and learn how fair valuation is determined, the Black-Scholes Model offers a strong foundation. With the right data and tools, its application is straightforward and can serve as a valuable guide for traders, investors, and financial professionals alike.

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4	Synthetic Futures – Definition, Risk, Advantages, Example
5	Difference Between Forward and Future Contracts Explained
6	Cost of Carry in Futures Contract
7	Silver Futures Trading – Meaning, Benefits and Risks

Frequently Asked Questions (FAQs)

What is the Black-Scholes Model used for?
This model is used to calculate the theoretical price of options.
Is the Black-Scholes Model still relevant today?
Yes, this model is still used a lot today, especially for valuing European options.
Can I use the Black-Scholes formula to calculate option prices manually?
Yes, but the calculations are a bit complex, it is easier to calculate using a spreadsheet or calculator.
What are the key inputs in Black-Scholes Model?
Spot price, strike price, time to expiry, risk-free rate and volatility – these are the main inputs.
Is the model accurate in all market conditions?
No, its accuracy may decrease in highly volatile market conditions.

August 22, 2025

Shreeji Shipping Allotment IPO Status: Check Latest GMP, Steps to Verify Status

Shreeji Shipping Global Limited, a leading player in dry-bulk logistics across non-major ports in India and Sri Lanka, has launched its ₹411 crore IPO, consisting entirely of a fresh issue of 1.63 crore equity shares. The issue opened for subscription on August 19, 2025, at a price band of ₹240 to ₹252 per share, and closed on August 21, 2025. Post allotment, the company’s shares are scheduled to be listed on both the BSE and NSE on August 26, 2025.

Shreeji Shipping IPO Day 3 Subscription Status

The Shreeji Shipping IPO witnessed an overwhelming response on the final day, with an overall subscription of 58.08 times. The issue was led by Qualified Institutional Buyers (110.41 times), followed by Non-Institutional Investors (72.70 times). The Retail Investor category also saw strong demand, being subscribed 21.92 times.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	110.41
Non-Institutional Investors (NII)	72.70
bNII (above ₹10 lakh)	72.86
sNII (less than ₹10 lakh)	72.37
Retail Individual Investors (RII)	21.92
Total Subscriptions	58.08

Total Applications: 19,98,034

Total Bid Amount (₹ Crores): 16,699

How to Check Shreeji Shipping IPO Allotment Status

Shreeji Shipping Global 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 (Bigshare Services Pvt. Ltd.)

The most reliable way is to check allotment from Bigshare Services Pvt. Limited’s website.

How to do:

Visit Bigshare Services official website
Select “Shreeji Shipping Global Ltd.” 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 “Shreeji Shipping Global Ltd.” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Shreeji Shipping Global IPO

Shreeji Shipping Global Limited intends to utilize the net proceeds from the fresh issue primarily for expansion and strengthening of its fleet through the acquisition of dry bulk carriers in the Supramax category, for partial repayment or prepayment of certain outstanding borrowings, and for general corporate purposes.

Use of IPO Proceeds	Amount (₹ Cr)
Acquisition of Dry Bulk Carriers in Supramax category in the secondary market	251.18
Pre-payment/ re-payment, in part or full, of certain outstanding borrowings availed by the Company	23
General Corporate Purposes	–

Shreeji Shipping IPO GMP – Day 3 Update

The grey market premium (GMP) of Shreeji Shipping IPO is ₹38, as on 5:00 PM August 21, 2025. The upper limit of the price band is ₹252, and the estimated listing price as per today’s GMP can be ₹290, giving a potential gain of around 15.08% per share.

Date	GMP	Est. Listing Price	Gain
21-08-2025 (DAY 3)	₹38	₹290	15.08%

Shreeji Shipping IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Issue Price Band	₹240 to ₹252 per share
Total Issue Size	1,62,98,000 shares(aggregating up to ₹410.71 Cr)
Listing Platform	BSE, NSE
Registrar	Bigshare Services Private Limited
Shreeji Shipping IPO RHP	Click Here

Important Dates for Shreeji Shipping IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

Shreeji Shipping Overview

Shreeji Shipping Global Limited is an integrated shipping and logistics service provider specializing in dry bulk cargo handling across ports and jetties in India and Sri Lanka. With over three decades of industry experience, the company operates a fleet of 80+ vessels, 370+ earthmoving equipment, and offers end-to-end solutions including lighterage, stevedoring, cargo management, transportation, fleet chartering, and equipment rentals. Focused on non-major ports, particularly along India’s west coast, Shreeji serves diverse sectors such as oil and gas, energy, FMCG, coal, and metals. For FY 2025, it reported revenues of ₹6,076.13 million and PAT of ₹1,412.37 million.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Shreeji Shipping IPO?
Shreeji Shipping IPO is open on 19 August 2025 and will close on 21 August 2025.
What is the price band of the Shreeji Shipping IPO?
Its price band is fixed from ₹240 to ₹252 per share.
What is the GMP (Grey Market Premium) of Shreeji Shipping IPO today?
The GMP on 21 August 2025 is ₹38, which leads to a possible listing price of ₹290.
What is the total issue size of Shreeji Shipping IPO?
The total issue size of the Shreeji Shipping IPO is ₹410.71 crore, which is entirely a fresh issue.
What is the expected listing date of Shreeji Shipping?
This IPO is expected to be listed on BSE and NSE on August 26, 2025.

August 21, 2025

Vikram Solar Allotment IPO Status: Check Latest GMP, Steps to Verify Status

Vikram Solar Limited, a major player in solar photovoltaic manufacturing in India, has launched its ₹2,079 crore IPO, comprising a fresh issue of ₹1,500 crore and an offer for sale of ₹579 crore. The issue opens for subscription on August 19, 2025, at a price band of ₹315 to ₹332 per share, and closes on August 21, 2025. Post allotment, the company’s shares are expected to be listed on both the BSE and NSE on August 26, 2025.

Vikram Solar IPO Day 3 Subscription Status

Vikram Solar IPO witnessed a massive response on the final day, with an overall subscription of 56.42 times. The issue was driven by strong demand from Qualified Institutional Buyers (145.10 times), followed by Non-Institutional Investors (52.87 times). The Retail Investor category was subscribed 7.98 times, while the employee quota stood at 5.10 times.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	145.10
Non-Institutional Investors (NII)	52.87
bNII (above ₹10 lakh)	59.58
sNII (less than ₹10 lakh)	39.46
Retail Individual Investors (RII)	7.98
Employees	5.10
Total Subscriptions	56.42

Total Applications: 35,06,503

Total Bid Amount (₹ crores): 82,296

How to Check Vikram Solar IPO Allotment Status

Vikram Solar 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 (MUFG Intime India Pvt. Ltd.)

The most reliable way is to check allotment from MUFG Intime India Private Limited’s website.

How to do:

Visit MUFG Intime’s official website
Select “Vikram Solar Ltd.” 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 “Vikram Solar Ltd.” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Vikram Solar IPO

Vikram Solar Limited intends to utilize the net proceeds from the fresh issue towards funding capital expenditure for its Phase I and Phase II projects, along with meeting general corporate purposes.

Use of IPO Proceeds	Amount (₹ Cr)
Partial funding of capital expenditure for the Phase-I Project	769.73
Funding of capital expenditure for the Phase-II Project	595.21
General Corporate Purposes	–

Vikram Solar IPO GMP – Day 3 Update

The grey market premium (GMP) of Vikram Solar IPO is ₹51, as on 5:00 PM August 21, 2025. The upper limit of the price band is ₹332, and the estimated listing price as per today’s GMP can be ₹383, giving a potential gain of around 15.36% per share.

Date	GMP	Est. Listing Price	Gain
21-08-2025 (DAY 3)	₹51	₹383	15.36%

Vikram Solar IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Issue Price Band	₹315 to ₹332 per share
Total Issue Size	6,26,31,604 shares(aggregating up to ₹2,079.37 Cr)
Listing Platform	BSE, NSE
Registrar	MUFG Intime India Private Limited
Vikram Solar IPO RHP	Click Here

Important Dates for Vikram Solar IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

Vikram Solar Overview

Vikram Solar Limited is one of India’s largest solar photovoltaic (PV) module manufacturers, with over 17 years of industry experience. As of March 31, 2025, the company has an installed manufacturing capacity of 4.5 GW, strategically located in West Bengal and Tamil Nadu, and is expanding to 20.5 GW by FY 2027. Its product portfolio includes high-efficiency Mono-PERC, N-Type, and HJT solar modules, supported by strong R&D and global certifications. Vikram Solar also provides EPC and O&M services and exports to over 39 countries, serving marquee clients worldwide while maintaining a strong domestic presence.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Vikram Solar IPO?
Vikram Solar IPO is open on 19 August 2025 and will close on 21 August 2025.
What is the price band of the Vikram Solar IPO?
Its price band is fixed from ₹315 to ₹332 per share.
What is the GMP (Grey Market Premium) of Vikram Solar IPO today?
The GMP on 21 August 2025 is ₹51, which leads to a possible listing price of ₹383.
What is the total issue size of Vikram Solar IPO?
The total issue size of the Vikram Solar IPO is ₹2,079.37 crore, consisting of ₹1,500 crore of fresh issue and ₹579.37 crore of offer for sale.
What is the expected listing date of Vikram Solar?
This IPO is expected to be listed on BSE and NSE on August 26, 2025.

August 21, 2025

How to Check Patel Retail IPO Allotment Status?

Patel Retail Limited, a Maharashtra-based supermarket operator, has launched its ₹243 crore IPO, comprising a fresh issue and an offer for sale. The issue opened for subscription on August 19, 2025, at a price band of ₹237 to ₹255 per share, and closed on August 21, 2025. Following allotment, the company’s shares are set to be listed on both the BSE and NSE on August 26, 2025.

Patel Retail IPO Day 3 Subscription Status

Patel Retail IPO witnessed an overwhelming response on the final day, with an overall subscription of 95.69 times. The issue was driven mainly by Qualified Institutional Buyers (272.14 times), followed by strong demand from Non-Institutional Investors (108.11 times) and Retail Investors (42.55 times). The employee quota was also oversubscribed at 25.29 times.

Investor Category	Subscription (x)
Qualified Institutional Buyers (QIB)	272.14
Non-Institutional Investors (NII)	108.11
bNII (above ₹10 lakh)	102.09
sNII (less than ₹10 lakh)	120.17
Retail Individual Investors (RII)	42.55
Employees	25.29
Total Subscriptions	95.69

Total Applications: 28,00,638

Total Bid Amount (in ₹ crore): 19,080

How to Check Patel Retail IPO Allotment Status

Patel Retail 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 (Bigshare Services Pvt. Ltd.)

The most reliable way is to check allotment from Bigshare Services Pvt. Limited’s website.

How to do:

Visit Bigshare Services official website
Select “Patel Retail Ltd.” 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 “Patel Retail Ltd.” from the IPO list
Enter PAN number and Application number
Click on Search

Objective of the Patel Retail IPO

Patel Retail Limited intends to utilize the net proceeds from the IPO towards repayment or prepayment of certain outstanding borrowings, meeting its working capital requirements, and for general corporate purposes.

Use of IPO Proceeds	Amount (₹ Cr)
Repayment/prepayment, in full or part, of certain borrowings availed of by the Company.	59
Funding of working capital requirements of the Company	115
General Corporate Purposes	–

Patel Retail IPO GMP – Day 3 Update

The grey market premium (GMP) of Patel Retail IPO is ₹50, as on 5:00 PM August 21, 2025. The upper limit of the price band is ₹255, and the estimated listing price as per today’s GMP can be ₹305, giving a potential gain of around 19.61% per share.

Date	GMP	Est. Listing Price	Gain
21-08-2025 (DAY 3)	₹50	₹305	19.61%

Patel Retail IPO – Key Details

Particulars	Details
IPO Opening Date	August 19, 2025
IPO Closing Date	August 21, 2025
Issue Price Band	₹237 to ₹255 per share
Total Issue Size	95,20,000 shares(aggregating up to ₹242.76 Cr)
Listing Platform	BSE, NSE
Registrar	Bigshare Services Private Limited
Patel Retail IPO RHP	Click Here

Important Dates for Patel Retail IPO Allotment

Event	Date
Tentative Allotment	August 22, 2025
Refunds Initiation	August 25, 2025
Credit of Shares to Demat	August 25, 2025
Listing Date	August 26, 2025

Patel Retail Overview

Patel Retail Limited is a value-focused supermarket chain operating under the brand “Patel’s R Mart,” primarily in tier-III cities and suburban areas of Maharashtra. Incorporated in 2008, the company manages 43 stores with a retail area of about 1.79 lakh sq. ft., offering over 10,000 SKUs across food, FMCG, general merchandise, and apparel. It has also developed private label brands such as Patel Fresh, Indian Chaska, Blue Nation, and Patel Essentials. Through backward integration, Patel Retail operates modern processing and agri-processing facilities in Maharashtra and Gujarat, supporting retail, exports to over 35 countries, and bulk agri-commodity trading.

Frequently Asked Questions (FAQs)

What is the opening and closing date of Patel Retail IPO?
Patel Retail IPO is open on 19 August 2025 and will close on 21 August 2025.
What is the price band of the Patel Retail IPO?
Its price band is fixed from ₹237 to ₹255 per share.
What is the GMP (Grey Market Premium) of Patel Retail IPO today?
The GMP on 21 August 2025 is ₹50, which leads to a possible listing price of ₹305.
What is the total issue size of Patel Retail IPO?
The total issue size of the Patel Retail IPO is ₹242.76 crore, consisting of 217.21 crore of fresh issue and 25.55 crore of offer for sale.
What is the expected listing date of Patel Retail?
This IPO is expected to be listed on BSE and NSE on August 26, 2025.

August 21, 2025

Pledging Shares vs Pay Later (MTF): Key Differences

Nowadays, many retail investors resort to margin trading so that they can buy more shares even with less capital. But there are two main ways to get this facility one is availing margin by Pledging Shares, and the other is Pay Later (MTF), where the brokerage firm lends you money. Both options work differently and choosing the wrong option can also lead to losses.

In this blog, we will understand in simple language what is the difference between Pledge Shares vs Pay Later, which option can be better for you, and what things should be kept in mind.

What is a Margin Trading Facility (MTF)?

Margin Trading Facility (MTF) is a facility that gives investors the advantage to buy more shares with less capital. In this system, instead of paying the entire amount at once, you invest a certain percentage of the amount yourself and your broker lends the rest of the amount. In return, the broker charges interest from you.

Example : Suppose you want to buy shares worth ₹1 lakh but you have only ₹25,000. If your broker gives 75% margin, then you can buy shares worth ₹1 lakh even by paying ₹25,000. The broker will give the remaining ₹75,000 and you will have to pay interest on it daily.

Pros of Margin Trading Facility

Facility to do big trades with less capital : Through MTF, you can buy shares of large amounts even by investing less money. This gives you the opportunity to catch big opportunities in the market, especially when you do not have the full amount.
Margin facility without needing an existing portfolio: With MTF, you can avail funds from the broker even if you don’t already hold shares. This allows you to trade and capture opportunities in the market without depending on your existing investments.
Regulated and secure system by SEBI : MTF runs completely as per the rules of SEBI. Under this, the process of pledging is done through NSDL/CDSL, which maintains transparency and security.

Cons of MTF

Interest cost can be high : In MTF, interest is calculated daily on the amount taken from the broker. With most brokers, this interest can be as high as 12% to 18% per annum, which significantly increases your cost in the long run.
Big loss due to high leverage : If the trade goes against you, then due to leverage the loss can also be equally high. Therefore, using MTF without risk management can be dangerous.
Forced selling of shares when the market falls : If the value of the pledged shares falls and the margin in your account reduces, then the broker can force selling. This puts the decision to exit the trade out of your control.

What is Pledging of Shares?

Pledging of Shares is a facility in which you can get margin for trading from the broker by pledging your existing shares. This saves you from having to invest extra money and you can make new trades using your existing portfolio. This is especially beneficial for those investors who want to hold long term investments but also want to trade in the short term.

How does Pledging of Shares work?

When shares are pledged, the broker applies a haircut to their value. This means that the collateral value of your pledged shares is reduced by a certain percentage. The haircut varies depending on the market value, volatility, and overall risk profile of the share. Higher-risk or more volatile shares usually attract a higher haircut, which reduces the effective margin you receive.

Example : If you pledge shares worth ₹1,00,000 and the haircut is 25%, then you will get a margin of ₹75,000. You can use this margin in share trading, option selling or other segments.

Pledging of Shares Process: OTP facility from CDSL/NSDL

Pledging of Shares is completely digital and SEBI-regulated. You have to give OTP-based approval through CDSL or NSDL. For every pledge, you get a link via SMS/E-mail, through which you approve the pledge.

Which stocks can be pledged?

Not every stock is eligible for pledge. Pledge is allowed only on stocks approved by SEBI and included in the broker’s approved securities list, usually bluechip and high-liquidity stocks.

Pros of Pledging of Shares

No need to invest extra cash : You can trade by pledging the shares you already have; this eliminates the need to invest new capital.
Trading without selling long-term holdings : If you want to hold your stocks for the long term, you can still pledge them and trade in the short term. This gives both benefits.
SEBI regulated, secure process : The pledge system through NSDL/CDSL is transparent and secure. The broker cannot take any action without your permission.
Useful in option trading : Margin is required for option writing (selling) in this situation pledged stocks prove to be very useful as it reduces the capital requirement.

Cons of Pledging of Shares

Due to haircut, full margin is not available : Haircut is applicable on every share. On some stocks, a haircut can be 30% or more, due to which you get less margin.
Some stocks are not eligible for pledge : Not all shares can be pledged. If you have shares of small or illiquid companies, then you may not be able to take pledge margin from them.
Risk of Auto-Square Off in market fall : If the value of your pledged stocks suddenly falls and the loss in your position increases, then the broker can automatically square off your position (auto square-off). This can lead to losses.

Pledging of Shares vs Pay Later (MTF): Key Differences

Feature	Pledging of Shares	Pay Later (MTF)
Source of Funding	Margin from own holdings	Funds are received in the form of loan from the broker
Ownership of shares	Shares remain in your name	Shares are purchased in your name using borrowed funds
Interest Rate	Interest on margin is charged only if used overnight or for delivery trades	Daily interest applies (typically 12-18% annually)
Risk Level	Low to medium	Higher, especially in volatile markets
Ideal Use Case	Option trading, margin shortfall, hedging	Positional trading for higher returns
Margin Flexibility	Depends on haircut % and type of pledged stock	Depends on broker limits and transaction size
Regulation	SEBI-mandated CDSL/NSDL pledge system	Governed by SEBI’s MTF framework

Increase Buying Power with Pocketful MTF – Get 5x Margin!

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Check Out – Stocks Available for MTF

When Should You Use Pledging of Shares?

Already held shares should be available : Investors who already have quality stocks and do not want to sell them can generate additional returns by trading using pledged shares.
Trading with Limited Capital : When there is an opportunity to trade in the market but cash is limited, Pledging of Shares is a better solution as it does not require investing new funds.
There should be a plan for option selling or hedge strategy : Pledging of Shares is most beneficial for option sellers, especially in hedged strategies (such as covered call or spread trades) where margin requirements are high.
Financing costs are low : The interest in Pledging of Shares is very low or sometimes even zero on intraday trading as compared to Pay Later MTF, making it a cost-efficient way of capital utilization.

When Should You Use Pay Later (MTF)?

When trading capital is low but conviction is high : If you have confidence in a stock or move but do not have required funds, then with MTF you can create a trading position without missing that opportunity.
Suitable for short-term or swing trading: The Pay Later facility is designed for traders looking to capture price movements typically within 3 to 15 days. By providing leverage, MTF enhances the potential for higher returns over this short holding period.
Immediate entry is needed in a high momentum market : When the market is moving fast and delaying entry can be harmful, then MTF offers an instant funding option.
Capital efficiency needs to be improved : With the Pay Later feature, you can take a much larger trading position with less capital, which can help in using the available funds in a smarter way.
Interest cost seems manageable : If you are planning to square off the trade quickly and the impact of interest is minimal, then MTF can prove to be cost-effective.

Use our Margin Trading Facility Calculator

Conclusion

Pledging Shares and Pay Later (MTF) are powerful tools that offer flexibility and capital efficiency to modern traders. However, choosing the right option depends on how you trade and whether you have some shares that you wish to hold for the long term or not. Pay Later (MTF) works best for short term trading opportunities, while Pledging Shares can be a smarter way to unlock the value of your long term holdings. Your decision should align with your trading style, risk appetite and investment horizon. Always keep in mind that leverage is a double edged sword. It can amplify gains but without the right strategy it can also magnify losses. Hence, it is advised to consult a financial advisor before using either of these features.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Margin Against Shares: How Does it Work?
2	Top Tips for Successful Margin Trading in India
3	Margin Pledge: Meaning, Risks, And Benefits
4	What is Intraday Margin Trading?
5	What is Operating Profit Margin?
6	What is Stock Margin?
8	What is Margin Funding?

Frequently Asked Questions (FAQs)

What is the meaning of MTF in trading?
MTF means Margin Trading Facility, through which you can buy more quantities of shares for less money.
Can I pledge any stock for margin?
No, only stocks from the broker’s approved list can be pledged, usually liquid and blue-chip stocks.
Is interest charged in MTF?
Yes, MTF charges interest daily as per the MTF rates specified by the broker until you close the position.
What happens if the price of the stock bought using MTF falls?
If the stock price falls and the stock is bought using MTF, the broker may send you a margin call or square-off your position.
Which is safer: MTF or Pledge Shares?
Safety depends on your strategy. Pledging shares reduces risk for long-term investors, while MTF offers the option of high risk but quick returns.

August 21, 2025

Blog

Shivashrit Foods IPO – Day 1 Subscription Status

Objective of the Shivashrit Foods IPO

Shivashrit Foods IPO GMP – Day 1 Update

Shivashrit Foods Ltd. IPO – Key Details

Important Dates for Shivashrit Foods IPO Allotment

Shivashrit Foods Ltd. Overview

Easy Steps to Apply for Shivashrit Foods IPO via Pocketful

Frequently Asked Questions (FAQs)

When does the Shivashrit Foods IPO open and close?

What is the price band?

What is the issue size and structure?

When will the listing happen?

What are the IPO objectives?

Classic Electrodes IPO – Day 1 Subscription Status

Objective of the Classic Electrodes IPO

Classic Electrodes IPO GMP – Day 1 Update

Classic Electrodes (India) Ltd. IPO – Key Details

Important Dates for Classic Electrodes IPO Allotment

Classic Electrodes (India) Ltd. Overview

Easy Steps to Apply for Classic Electrodes IPO via Pocketful

Frequently Asked Questions (FAQs)

What are the opening and closing dates of Classic Electrodes IPO?

What is the price band for the IPO?

What is the issue size of the IPO?

When will the shares be listed?

What is the GMP of Classic Electrodes IPO on Day 1?

Mangal Electrical IPO – Day 3 Subscription Status

How to Check Mangal Electrical IPO Allotment Status

Method 1: Registrar’s Website

Method 2: BSE Website

Objective of the Mangal Electrical IPO

Mangal Electrical IPO GMP – Day 3 Update

Mangal Electrical IPO – Key Details

Important Dates for Mangal Electrical IPO Allotment

Mangal Electrical Overview

Frequently Asked Questions (FAQs)

What are the opening and closing dates of the Mangal Electrical IPO?

What is the price band of the IPO?

What is the issue size of the IPO?

When will the shares list?

What are the objectives of the IPO?

Gem Aromatics IPO – Day 3 Subscription Status

How to Check Gem Aromatics IPO Allotment Status

Method 1: Registrar’s Website (Kfin Technologies Ltd.)

Method 2: BSE or NSE Website

Objective of the Gem Aromatics IPO

Gem Aromatics IPO GMP – Day 3 Update

Gem Aromatics IPO – Key Details

Important Dates for Gem Aromatics IPO Allotment

Gem Aromatics Overview

Frequently Asked Questions (FAQs)

Q1. What is the opening and closing date of the Gem Aromatics IPO?

What is the price band of the Gem Aromatics IPO?

What is the total issue size of the Gem Aromatics IPO?

What is the expected listing date of Gem Aromatics?

What are the objectives of the Gem Aromatics IPO?

LGT Business Connextions IPO Day 3 Subscription Status

How to Check LGT Business Connextions IPO Allotment Status

Method 1: Registrar’s Website (Skyline Financial Services Pvt. Ltd.)

Method 2: BSE Website

Objective of the LGT Business Connextions IPO

LGT Business Connextions IPO GMP – Day 3 Update

LGT Business Connextions IPO – Key Details

Important Dates for LGT Business Connextions IPO Allotment

LGT Business Connextions Overview

FAQs (Frequently Asked Questions)

What is the opening and closing date of the LGT Business Connextions IPO?

What is the price band of the LGT Business Connextions IPO?

What is the total issue size of the LGT Business Connextions IPO?

What is the expected listing date of LGT Business Connextions?

What is the Grey Market Premium (GMP) of the LGT Business Connextions IPO today?

What Is Black-Scholes Model?

1. Current Price

2. Strike Price

3. Time to Expiry

4. Volatility

5. Risk-Free Interest Rate

The Black-Scholes Formula

Black-Scholes Formula: