What is IPO
An IPO stands for Initial Public Offering.
It’s the process where a private company offers its shares to the public for the first time and gets listed on a stock exchange like NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) in India.
Simple Explanation
Imagine a company that has been privately owned by a small group — maybe the founders, early investors, or family members.
When that company needs more money to grow, it can:
Borrow money (like taking a loan), or
Sell a part of ownership to the public through an IPO.
With an IPO, anyone — including you — can buy shares and become a part-owner of that company.
Key Points About IPO
| Term | Meaning |
|---|---|
| Issuer | The company launching the IPO. |
| Underwriter | Banks or financial institutions that help with the IPO process. |
| Prospectus | A detailed document explaining the company’s business, financials, risks, etc. |
| Price Band | The minimum and maximum price at which investors can bid for shares. |
| Lot Size | The minimum number of shares you must buy in one application. |
| Listing Day | The first day when the company’s shares start trading on the stock exchange. |
Why Companies Launch IPOs
Raise Capital – For expansion, paying debts, new projects.
Increase Visibility – Being a listed company builds trust and reputation.
Allow Early Investors to Exit – Initial backers can sell some shares and book profits.
Why Investors Buy IPOs
Early Opportunity – Get in at the start of a company’s public journey.
Potential Listing Gains – Share price may rise on the first day of trading.
Long-term Growth – If the company performs well, shares can appreciate significantly.
Example
Zomato IPO (July 2021)
Price Band: ₹72–₹76 per share
Listing Day Price: ₹115
Result: Investors who got shares earned ~50% profit on the very first day.
Here you can track live and upcoming IPOs — including subscription data, allotment status, subscriptions and listing performance
Here’s a step-by-step guide on how to apply for an IPO in India.
| Step | Title | Description |
|---|---|---|
| 1 | Check Upcoming IPOs | Visit NSE/BSE websites or financial apps like Moneycontrol to check IPO dates, price band, and lot size. |
| 2 | Login to Your Bank or Broker | Log in to your bank net banking or broker account (Zerodha, Groww, Upstox, etc.). |
| 3 | Select the IPO | Go to the IPO section and choose the IPO you wish to apply for. |
| 4 | Enter IPO Application Details | Fill out details like Lot Size, Bid Price, and UPI ID. Choose Cut-off Price if unsure. |
| 5 | Approve UPI Payment | Approve the UPI mandate request to block funds for IPO application. |
| 6 | Check IPO Allotment Status | After the IPO closes, check allotment status on NSE/BSE websites or the registrar's site. |
| 7 | Shares or Refund | If allotted, shares will be credited to your Demat account. If not, funds will be unblocked automatically. |
| 8 | Listing Day | On listing day, decide to sell your shares for listing gains or hold for long-term investment. |