What do you mean by IPO funding?

IPO funding is basically a credit facility that’s offered by many Non-Banking Financial Corporations (NBFCs). If you’re low on funds, you can use this loan to apply for an IPO of your choosing so as to not miss out on the wealth creation opportunity.

What is the life cycle of an IPO?

The life cycle of a typical IPO consists of three distinct phases - a pre-IPO transformation phase, an IPO transaction phase, and a post-IPO transaction phase. The pre-IPO transformation phase is when the company complies with all the processes, procedures, and regulatory requirements.

Can I revise or cancel my IPO application?

Of course. You can revise or cancel your IPO subscription application till the IPO closing date. To do so, all you have to do is log into the trading portal of Motilal Oswal, navigate to the IPO section, where you can choose to modify the order or cancel it completely.

What is the book building in IPO?

Companies looking to go for an IPO typically use the book building method as a means of price discovery. Here’s the meaning of the book building process in an IPO. The book building method is the process through which a company attempts to discover the price at which its shares should be issued at.

Who can invest in an IPO?

Any individual, corporate entity, or a partnership firm can invest in an IPO. The only prerequisite for investing in one is that you require an active demat account.

What is the meaning of IPO (Initial Public Offer)?

An Initial Public Offering, also known as an IPO, is the process through which a company offers its shares up for sale to the general public for the first time. This is the traditional IPO definition. Once a company has sold its shares to the general public, which includes both institutional and retail investors, they get listed on a stock exchange and can be traded freely.

How to apply for upcoming IPOs online at Motilal Oswal?

To apply for an online Initial Public Offering (IPO) through Motilal Oswal, you first need to open a trading and demat account with us. Once you’ve opened it, log into the Motilal Oswal trading portal using the credentials given to you and select the IPO that you wish to invest in.

What is IPO issue size?

The IPO issue size represents the total number of shares and the total value of the shares being put up for sale by the company. On the other hand, the IPO lot size is the minimum number of shares for which you’re required to place an order.

Where do I get an application form for an upcoming IPO?

You can get an application form for an upcoming IPO or a New Fund Offer (NFO) through various different ways. Here’s a quick look. You can get it from the trading portal of Motilal Oswal, where you can also apply for the upcoming IPO online. You can get a physical copy of the application form from any of the branch offices of Motilal Oswal.

How to check an IPO start date?

To check the start date of a public issue, all that you need to do is take a look at the IPO calendar hosted on the Motilal Oswal website. In addition to giving you an idea about the upcoming IPO list, it also provide

What is pre-apply in IPO?

As the name suggests, pre-apply IPO applications are the ones that allows an investor to apply for a specific IPO before the bidding period starts. Usually, pre-applications start 3-4 days before the actual bidding period. With Motilal Oswal, you can now pre-apply for any IPO, to make sure you don’t miss the bid.

What is the minimum and maximum Investment in an IPO for retail investors?

The minimum investment requirement for an IPO is decided by the company, which ranges in between Rs 12,000 to Rs 15,000. However, a retail investor can invest a maximum of Rs 2 Lakh in an IPO.

Do I need a Demat account for investing in an IPO?

It is not mandatory for an investor to have a DEMAT account to invest in an IPO. But, to trade the shares allocated in the IPO, an investor will have to open a DEMAT Account. Open a Demat Account with Motilal Oswal now!

How do I sell an IPO on a listing day?

To sell IPO shares on the listing day, an investor can make use of the pre-market session to place the sell orders. This can be done by selecting the option of 'selling'. Post this, you can set certain parameters such as the trigger price (price at which you wish to sell the share), number of shares to be sold, etc. once the shares get listed.

What is the average first day return on IPOs?

Listing day returns of an IPO depend on variety of factors such as the fundamentals of the company, valuations, percentage of institutional buyers, High-net-worth individuals (HNI), etc. Although, it is not possible to correctly specify the first day returns, an investor can expect good-priced IPOs to at least bounce up by 10%.

What is the difference between issue price and listing price?

The issue price of an IPO is the price at which a company sells its shares. The IPO is then listed at exchanges. The listing price is the opening price of the share on the listing day.

What is Price Band in IPO?

Price band of a share in an IPO is a price range set by the company to sell its shares to the public. Price-band allows the company to know if an investor is eager to buy the share at an upper range or at the lower range. For example, if the price-band of a particular IPO is priced at Rs 200-250 per share, an investor cannot bid below Rs 200 or beyond Rs 250 per share. Price-band varies depending on the type of investor.

What is the difference between DRHP and RHP?

DRHP means Draft Red Herring Prospectus. This means, DRHP is a draft that does not have complete particulars on the price of the securities offered and quantum of securities offered. On the other hand, RHP is the final prospectus that is approved by the SEBI. RHP, thus contains all information and data with respect to the price of the shares offered for sale, and the number of shares an investor will be allocated.