Current IPO
An Initial Public Offering (IPO) allows a company to offer its shares to the public for the first time. Investors can apply for an IPO during the subscription period after reviewing details such as issue price, lot size, financial information, and other disclosures. This article explains current IPO details, the difference between Mainboard and Small and Medium Enterprise (SME) IPOs, the IPO application process, allotment-related points, required documents, and factors investors may consider while applying for an IPO.
- Issue Date 20 Aug - 24 Aug
- Price Range ₹ 285 to ₹300
- IPO Size ₹ 650 Cr
- Min. Investment ₹ 14250
- Issue Date 21 Aug - 25 Aug
- Price Range ₹ 750 to ₹788
- IPO Size ₹ 825 Cr
- Min. Investment ₹ 14250
An Initial Public Offering (IPO) is a process through which a private company offers its shares to public investors for the first time. The company issues shares to raise funds for business requirements, expansion, debt repayment, or other purposes mentioned in the offer document.
After the IPO process is completed, the company's shares may get listed on recognised stock exchanges such as the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE), allowing investors to trade them in the secondary market.
The following table explains the key differences between Mainboard and Small and Medium Enterprise (SME) IPOs.
| Feature | Mainboard IPO | SME IPO |
|---|---|---|
| Company Size | Generally issued by larger companies | Issued by small and medium enterprises |
| Listing Platform | NSE or BSE mainboard platforms | NSE Emerge or BSE SME platforms |
| Investor Participation | Open to eligible investors based on IPO category | May have different eligibility and lot size requirements |
| Lot Size | Usually lower compared to SME IPOs | Generally higher due to exchange requirements |
| Trading Conditions | Follows mainboard trading rules | Follows SME platform regulations |
Both IPO types are regulated by the Securities and Exchange Board of India (SEBI). Investors may review the offer document and issue details before applying.
The following are the two common methods through which IPOs are issued.
Book Building Method
In the book building process, the company provides a price range called the price band. Investors submit bids within this range. Based on the demand received from investors, the final issue price is decided.
The allotment of shares depends on the number of applications received and the category of investors.
Fixed Price Method
In a fixed price issue, the company decides the share price before opening the IPO. Investors apply at the specified price, and shares are allotted based on the available demand and category-wise allocation.
The following are the general steps to apply for an IPO through a trading platform:
1. Open the IPO section on the platform.
2. Select the IPO available for subscription.
3. Review the issue details, including price band and lot size.
4. Enter the number of lots and bid price.
5. Complete the application using the Unified Payments Interface (UPI) process.
6. Approve the payment mandate request received through the UPI application.
7. Check the allotment status after the IPO closes.
The application process may vary depending on the platform used by investors.
Tips to Increase your Chances of IPO Allotment
Applying through the correct investor category and following the prescribed bidding process can help investors participate in an IPO effectively. However, IPO allotment rules may differ based on the type of issue, investor category, subscription demand, and applicable regulatory guidelines.
Retail investor allocation and allotment mechanisms are not identical across all IPOs. Mainboard and SME IPOs may have different eligibility requirements, allocation structures, and exchange-specific rules. Investors should review the IPO offer document and issue details before applying.
Investors should avoid submitting multiple applications using the same PAN, as this may lead to rejection. For eligible retail investors in book-built IPOs, bidding at the cut-off price may be applicable as per the rules of the specific issue.
Documents Required to Apply for an IPO
The following documents and details are generally required for an IPO application:
- Permanent Account Number (PAN)
- Active Demat account details
- Bank account linked with UPI or application method
- UPI ID for online applications
- Registered mobile number linked with banking details
Investors should ensure that the information provided in the application matches their official records.
Conclusion
Current IPO details such as issue dates, lot size, subscription status, and price bands help investors understand an IPO before applying. The IPO process involves multiple stages, including bidding, allotment, and listing. Investors may review the offer document, company information, and applicable risks before making decisions. Understanding the difference between Mainboard and SME IPOs, application requirements, and allotment process can help investors follow IPO-related information more effectively. Checking updates from recognised sources can help investors stay informed about ongoing and upcoming IPOs.
Here’s the link to our blog on How to Increase Your Chances of IPO Allotment.
Trending News about IPOs
Frequently Asked Questions
To get information about all the current IPOs along with its subscription status kindly check https://www.5paisa.com/ipo/ipo-subscription-statu
Issue size refers to the minimum amount the company wishes to raise from the market. The issue size determines the price band, lot size, and minimum investment amount.
Generally, the company willing to list itself and the lead managers, such as syndicate members or merchant bankers, determine the price band of the IPO. Contrary to popular belief, SEBI does not have any say in fixing the price band of an IPO.
IPO prices are generally set by merchant bankers after evaluating the company's financial strengths, business risks, valuation, and public perception. Deciding the price is crucial since if the price is too high, the IPO may get a lukewarm response from investors.
5paisa offers you a comprehensive review of current and upcoming IPOs and publishes the issue open and close dates on its website.
An IPO can generate higher returns than many other investment instruments. For instance, when a company lists at a premium to its issue price, you may sell the shares instantly and take home your profits. Alternatively, if the company has a promising track record, you may stay invested longer to increase your profits.
You can apply for IPOs and FPOs through 5paisa. IPOs are issued by unlisted companies, while FPOs are offered by listed companies to raise funds.
An IPO or Initial Public Offering is launched by a company seeking funds for expanding its business, running its operations, or consolidating existing debt. An FPO or Follow-on Public Offer is launched by an already listed company seeking additional funds from investors.
An IPO generally remains open for a few working days as specified in the offer document. The subscription period may vary depending on regulatory requirements, issue conditions, and any permitted changes during the bidding period.
Grey Market Premium (GMP) refers to the price difference at which IPO shares are traded in the unofficial grey market before listing.
Mainboard IPOs are issued by larger companies, while SME IPOs are issued by small and medium enterprises with different listing requirements.
Investors can apply through an IPO platform by entering bid details and approving the payment mandate request received through UPI.
IPO applications generally require PAN details, Demat account information, bank account details, and a valid UPI ID.
Yes, investors may modify or cancel applications during the IPO bidding period, subject to applicable exchange and platform rules.
If shares are not allotted, the blocked application amount is released or refunded according to the applicable process.
SME IPOs involve market risks. Investors may review company details, financial information, and offer documents before applying.
The minimum lot size is decided by the company and mentioned in the IPO offer document.
The IPO subscription period is the timeframe during which investors can submit applications for an IPO.
IPO allotment is conducted according to regulatory guidelines and depends on investor category, demand, and shares available.
IPO shares are generally listed on stock exchanges after the allotment process and completion of required procedures.
A minor may apply through a guardian if permitted under applicable rules and procedures.