IPO

What is IPO?

An Initial Public Offering (IPO) is a financial process through which a privately held company transitions into a publicly traded entity by issuing its shares to the general public for the first time.

What is the process of investing in IPO?

Step 1:

Open Demat Account

Step 2:

Check Eligibility as some IPOs have specific criteria, such as a minimum investment amount or specific account types. Make sure you meet the eligibility requirements for the IPO you're interested in.

Step 3:

Research the IPO by understand its business model, financials, and growth prospects. Many IPOs have a prospectus or offering document that provides detailed information.

Step 4:

Place an Order for the IPO shares through the brokerage platform. Specify the number of shares you want to purchase and the price you're willing to pay (or choose the option to purchase at the IPO price).

Step 5: Wait for Allocation:

After submitting your order, you'll have to wait for the allocation process. Not all orders may be fulfilled, and the number of shares you receive depends on factors like demand and the allotment process determined by the company and underwriters.

Step 6: Allotment and Confirmation:

If your order is successful, you will receive an allotment of shares. The brokerage platform will confirm the number of shares allocated to you, and the corresponding amount will be deducted from your account.

Step 7: Listing and Trading:

Once the IPO is listed on the stock exchange, the shares become tradable. You can choose to hold onto your shares or sell them on the open market.