NCML Industries Ltd IPO

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

1. Qualified institutional investors (QIIs)
2. Anchor investors
3. Retail investors and
4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

• Login to the 5paisa website or mobile trading app
• Go to the Current IPOs section
• Select the IPO you wish to apply for
• Enter IPO details like price, quantity (lots) and your UPI ID
• Check details and Confirm
• Approve the UPI notification received on your phone (in BHIM App or your net banking app)

You can easily find it on 5paisa.com

Check: List of Upcoming IPOs in 2021

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.