The primary market provides investors, opportunities to buy shares at a reasonable price before its upcoming IPO listing price. Additionally, retail investors also enjoy discounted rates while applying for Upcoming IPOs. Holding on to the shares also provides an opportunity to participate in the future success of these companies.
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Initial public offering or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.
Firstly, login on any of the online platforms of Motilal Oswal Financial Services Ltd and select the Upcoming IPO you wish to invest in. Secondly, enter the minimum Lot Size & desired Price (or use the Cut-off price option) and click on “Submit” for placing an order. You can also place multiple bids as well, from a single order form.
To apply for an Upcoming IPO you can either place your bids through “Online Trading Platforms” using UPI or else you can fill an IPO application form. You can also get the application form through a registered share broker or investment consultant such as Motilal Oswal Financial Services Ltd. Or else the forms are available at various banks as well as stalls outside the stock exchanges. The other option is to check the SEBI Website (http://www.sebi.gov.in/) for the prospectus of a particular Upcoming IPO. The prospectus lists the lead managers for the New IPO and you can get a copy of the application form from their centers as well. Once you get the form, you have to fill the details pertaining to minimum lot size & desired price (or use the Cut-off price option). Also you need to enter the UPI ID for bidding the desired IPO. Payment needs to be blocked post applying for an IPO investment using the UPI enabled app. User can also apply for a New IPO using the ASBA process through Net Banking. If you have a demat account with a registered broker such as Motilal Oswal or any bank, you can apply for the shares directly through your demat account or there is an option of physical delivery of share certificates. Some IPOs offer only demat (dematerialised) form of shares, while others offer both demat as well as regular (physical) shares. SEBI advises investors to get the allotment in demat form as the shares in IPO are tradable only in demat segment in the stock exchanges. Dealing of physical shares (allocated in New IPO) is not accepted.
IPO Funding (or IPO Financing) is a loan offered for applying in primary stock market by NBFCs (Non Banking Financial Companies) to retail, high net worth individuals (HNI) as well as Corporate entities and Partnership / LLP firms. As per ICRA, over Rs 20,000 IPO funding is offered in a good mainline IPO.
“Yes, you can revise or cancel your IPO application.
An initial public offering (IPO) represents a private company’s first offering of its equity to public investors. A company goes through a three-part IPO transformation process: a pre-IPO transformation phase, an IPO transaction phase and a post-IPO transaction phase.
“If you are still interested in the IPO, you don’t have to do anything. When you get the allotment of shares, only the required amount will be taken from the blocked amount. If you are no more interested in the IPO, you can always withdraw the application when bidding is in progress.”
Cut-off is a facility available for retail investors in the book building issues wherein the price is not fixed and investors have to bid within a predetermined price range. Marking the cut-off means that you’re willing to buy shares at any price set during the allotment process. Your bid price in your application makes no difference.
IPO stock can be bought before or after the underwriting broker sets the opening price. To buy the stock before the price is set, you must be a professional investor or have a special relationship with management. However, these investments are generally in very large amounts in the millions of dollars. They are also more risky than a stock market investment because the shares are much more difficult to sell before the IPO.
No, you cannot sell the stock before it gets listed. You can sell 50% of your shares if it lists above 40–50% gains and you can sell 100% of your shares if it exceeds 70% gains at 10 am on the Upcoming IPO listing day.
