Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Initial Public Offering is the process by which a private company offers its shares to the public for the first time on a stock exchange.
An IPO is when a company sells its shares to everyday investors for the first time on the stock market — like Zomato or Nykaa going public.
SEBI regulates IPO disclosure, pricing, and allotment. Retail investors apply via ASBA through banks or brokers. Listing gains are not guaranteed; post-listing performance depends on fundamentals and market sentiment.
You apply for an IPO at ₹450 per share for 2 lots (30 shares), investing ₹13,500. If listed at ₹600, paper profit is ₹4,500 before STT and taxes on sale.
For oversubscribed retail portions, SEBI-mandated lottery allotment applies. For QIB and HNI categories, proportional or book-building rules differ.
Yes, once shares credit to your demat and trading opens. Gains may qualify as STCG if sold soon after allotment depending on holding period rules.
Application Supported by Blocked Amount holds application money in your bank without debit until allotment, releasing unused funds if not allotted.