New to IPOs, or just want a term in plain English? Start here. We explain every number we show — so a 5-minute read is enough to understand any issue.
What is an IPO?
An Initial Public Offering is the first time a company sells its shares to the public and lists them on a stock exchange, usually to raise money to grow or to let early investors sell part of their stake.
What is a DRHP?
The Draft Red Herring Prospectus is the offer document a company files with SEBI. It lays out the business, financials, risks and exactly how the money raised will be used. It is the document we read and analyse for you, every figure cited to its page.
What is an RHP?
The Red Herring Prospectus is the near-final version of the DRHP, updated with the price band, filed just before the issue opens.
What is GMP, the grey-market premium?
The unofficial premium at which an IPO’s shares change hands before listing. It is unregulated, self-reported by grey-market dealers, and no exchange records it. Treat it as a sentiment signal, never a guarantee — which is why we also show how often GMP has actually been right.
What is the price band?
The range you can bid in, for example ₹100–105 per share. The upper end is the “cap”; the minimum investment is worked out at the cap price.
What are lot size and minimum investment?
You apply in lots, not single shares. The lot size is the smallest number of shares in one application; the minimum investment is that one lot at the cap price — the least you can put in.
Who are QIB, NII/HNI and Retail investors?
The three buckets an issue is split into: QIBs are large institutions (mutual funds, banks); NII/HNI are non-institutional investors applying above ₹2 lakh; Retail is individuals applying up to ₹2 lakh.
What does “subscribed 3x” mean?
How many times the shares on offer were bid for. 3x means investors asked for three times the shares available. Strong demand, especially from QIBs, is often read as interest — but it is demand, not a verdict.
Fresh issue vs Offer for Sale (OFS) — why does it matter?
In a fresh issue the company creates new shares and keeps the money to grow. In an OFS, existing shareholders sell their shares and the money goes to them, not the company. The split tells you who actually gets your money.
What is an anchor investor?
Large institutional investors who commit a day before the issue opens, at a fixed price. Strong anchor demand is a confidence signal; their shares carry a lock-in.
What is a lock-in period?
A window after listing during which certain holders (promoters, anchors, pre-IPO investors) cannot sell. When a big lock-in expires, more shares can hit the market and pressure the price — worth watching.
What is the cut-off price?
Retail investors can bid “at cut-off”, meaning they accept whatever final price is set within the band (usually the cap). It maximises the chance of allotment.
What is ASBA?
Application Supported by Blocked Amount: your application money is blocked in your bank account, not debited, until shares are allotted. If you get none, nothing is deducted.
What is allotment?
Whether you actually received shares. When an IPO is oversubscribed, retail allotment is decided by a lottery, so applying does not guarantee shares.
What is listing gain?
The percentage change between the issue price and the price on listing day — what an allottee gains or loses on day one. It is the number GMP tries to predict.
What is face value?
The nominal, on-paper value of a share (often ₹1, ₹2 or ₹10). It is an accounting figure, not the price you pay — that is set by the price band.
What is book building?
The price-discovery method most IPOs use: a band is offered, investors bid within it, and the final price is set from the demand collected.
Mainboard IPO vs SME IPO?
Two tracks. Mainboard is the big board on NSE and BSE, for larger companies. SME is a separate platform for smaller ones, with much bigger minimum lots (often Rs 1 to 2 lakh) and thinner trading after listing.
What is a fixed-price issue?
The price is set upfront instead of discovered through bidding, so you know the exact price before you apply. Common on smaller SME issues.
What is the Basis of Allotment (BoA) date?
The day the registrar finalises who got shares. After it, blocked money for non-allottees unblocks, and allotted shares are credited before listing.
What is a UPI mandate?
How most retail applications pay now. You approve a UPI request that blocks the amount in your account. It is debited only if you actually get an allotment.
What does oversubscribed mean?
Investors bid for more shares than are on offer. Retail is then allotted by a lottery, so heavier demand means lower odds, not more shares for you.
Who is the registrar?
The agency that processes applications, runs the allotment, and handles refunds. You check your allotment status on its website after the BoA date.
What is a market maker on an SME IPO?
On SME issues a broker agrees to quote buy and sell prices for a while after listing, to keep some liquidity in a stock that would otherwise barely trade.
What is a shareholder or employee quota?
A slice of the issue reserved for a listed parent company's shareholders, or for the company's own employees, often at a small discount. A separate bucket from retail.
What are kostak and subject-to-sauda?
Grey-market slang. Kostak is a fixed price someone pays for your whole application before allotment. Subject-to-sauda pays only if you get shares. Both are unofficial, like GMP.
What is flipping on listing day?
Selling the moment the stock lists, to book the gain or cut a loss, instead of holding. Most retail applicants do exactly this.