All you need to know about IPO

Short Summary:

  • List of upcoming IPOs and subscription details live data
  • How to subscribe?
  • Can one get listing gain always?
  • How IPO stocks are allocated?
  • Step-by-step guide to check IPO allotment status

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Initial Public Offer (IPO) is a privately held company's first sale of stock to the public via a stock exchange. Companies use IPO funds for working capital, debt repayment, acquisitions, and for many other uses. 

There is enough good material written by professionals in internet. So I will try to give a summary and necessary links for further reading.


List of upcoming IPOs and subscription details live data:

Follow chittorgarh website for all kinds of IPO data including financials, subscription rate, upcoming IPOs and ongoing IPO(s).

https://www.chittorgarh.com/ipo/


How to subscribe:

You need demat account like Zerodha and BHIM upi. (1) you have to fill the IPO from from Zerodha kite interface and accept the payment from connected BHIM upi app.

Steps to apply in an IPO through Zerodha

  1. Visit the Zerodha website and login to Console.
  2. Go to Portfolio and click the IPOs link.
  3. Go to the 'Complany IPO' row and click the 'Bid' button.
  4. Enter your UPI ID, Quantity, and Price.
  5. ‘Submit’ IPO application form.
  6. Visit the UPI App (net banking or BHIM) to approve the mandate.

Get all the steps here:


Broker: 

broker opens demat account to start investing in stocks. I'm using Zerodha discount broker. Its the market leader and charges an annual maintenance fee and a fixed dp charges while offloading an equity  lot.
Follow my referral below to earn signing bonus: Zerodha Referal link


Can one get listing gain always?

No.
Listing gain is achieved when (1) there enough demand or buzz for a stock (2) stock is sold at discount. Market conditions also place a role. Be careful that company try to gauge the demand and valuation of a new stock by selling outside the exchange before IPO hitting the market. Those data are most of the time provides a guideline about the scale of buzz around the company. However, they can also be manipulated.

Read the case about uncertainty of not getting listing gain.






How IPO stocks are allocated?

(I) Qualified Institutional and High Net-worth Individuals: 

For instance, the Y company IPO has been oversubscribed 4 times, an applicant who has asked for 100k shares will only get 25k shares of the company Y.

  
(II) Retail investors:  Companies issue shares in lots to retailers. In case of oversubscription in this category, the allotment is done through a computerized draw to pick applicants for IPO allotment. Each draw winner gets at least one lot. 

Read more about here:
(1)
(2)
(3)






Step-by-step guide to check IPO allotment status

BSE website:

Check your IPO allotment status on the BSE website here: https://www.bseindia.com/static/investors/application_statuschecksystem.aspx

Select ‘Equity’ and then from the dropdown, select issue name- ‘ipo company'. 

Please note the company will only appear once the allotment is done.

Enter your 'Application Number' and 'PAN Card No' and click Search.

Applicants can also visit the Registrar website of the company also to check status.

Note: Zerodha doesn't provide IPO allotment status.

Or LinkTime website

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Disclaimer: Stocks mentioned (if any) here are not recommendation. We may have already invested in some of the name mentioned here. Read full disclaimer here

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