Frequently Asked Questions
Learn about common IPO terms, subscription categories, GMP and the IPO application process.
What is an IPO?+
An IPO, or Initial Public Offering, is the process through which a private company offers its shares to the public for the first time and becomes listed on a stock exchange.
What is IPO GMP?+
IPO GMP stands for IPO Grey Market Premium. It refers to the premium at which an IPO is reportedly traded in the grey market before its official listing. GMP is an unofficial market indicator and is not guaranteed to be the actual listing price.
What is IPO subscription?+
IPO subscription shows how many times the shares offered in an IPO have been bid for by investors. For example, a subscription of 5x means bids have been received for five times the number of shares offered.
What is QIB in an IPO?+
QIB stands for Qualified Institutional Buyers. This category generally includes eligible institutional investors such as mutual funds, insurance companies and other institutions that meet the applicable regulatory requirements.
What is NII in an IPO?+
NII stands for Non-Institutional Investors. This category generally covers investors who are not eligible under the Qualified Institutional Buyer category and apply under the applicable non-institutional portion of an IPO.
What is the Retail category in an IPO?+
The Retail category is the portion of an IPO reserved for eligible retail individual investors, subject to the applicable rules and investment limits.
What is the difference between QIB, NII and Retail?+
QIB, NII and Retail are different investor categories in an IPO. QIB refers to qualified institutional investors, NII refers to eligible non-institutional investors, and Retail refers to eligible individual investors applying within the applicable retail category.
What is IPO lot size?+
Lot size is the minimum number of shares that an investor can apply for in an IPO. The minimum investment is generally calculated using the lot size and the applicable IPO price.
What is the IPO price band?+
The IPO price band is the range between the minimum and maximum price at which shares are offered to investors during the IPO.
What is IPO allotment?+
IPO allotment is the process through which shares are assigned to investors after the IPO subscription period ends. The method of allotment depends on the investor category and applicable regulatory rules.
What is an SME IPO?+
An SME IPO is an IPO issued by a small or medium-sized enterprise through an SME platform of a stock exchange. SME IPOs can have different eligibility, lot size and trading requirements from Mainboard IPOs.
What is the difference between GMP and listing price?+
GMP is an unofficial grey-market indicator before listing, whereas the listing price is the actual price at which the shares begin trading on the stock exchange. GMP does not guarantee the listing price.
What does 10x IPO subscription mean?+
A 10x subscription means the total demand represented by bids is ten times the number of shares available in the relevant category or issue, depending on how the subscription figure is reported.
What is IPO issue price?+
The issue price is the price at which shares are allotted to successful investors in an IPO, subject to the applicable IPO structure and pricing method.
What is IPO listing price?+
The listing price is the price at which an IPO share starts trading on the stock exchange on its listing day. It can be different from the IPO issue price.