Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

What is an IPO and how can we invest in one?

An Initial Public Offering or IPO is when equity shares of a company are offered to the public in the open market i.e. the stock market for the first time. The company going public raises capital and funds by trading IPO shares. During the IPO trading, a fraction of shares is reserved for different types of investors including Individual investors, Qualified Institutional Buyers and High Net-worth Individuals. The IPO is either a Fixed Price Issue or Book Built Issue.
In Fixed Price Issue IPO, price of the shares is decided by the company in advance. In Book Building Issue, the bidder bids for shares within a given price range.
Before investing in IPO, do proper research about the company. Always read the prospectus, pick a company with strong underwriters and study the valuation of the company. You can apply for IPO through ASBA (Application Supported by Blocked Amount). Under ASBA, the IPO application amount remains blocked in your bank account and the amount will be debited only to the extent of the shares allotted.
If you want to invest in IPO in a hassle-free manner, use HDFC securities app. You can apply in an IPO in just 3 clicks. You can download the app using this link-

Sign In or Register to comment.

Trade Brains | Discussion Forum

| Learn to Invest in Stocks
Copyright @ 2019 |Trade brains is a financial education blog focused to teach stock market investing and personal finance to the DIY (do-it-yourself) investors in order to make, grow & sometimes even spend money. #HappyInvesting
Powered by Dailyraven Technologies

Contact us
(+91) 8297411244

Get In Touch