Last Updated on June 11, 2025 10:14:20 PM by Vivek Makwana
Thinking about investing in the stock market? 🤔 Heard the buzz about companies “going public”? 🎤💼 That’s where IPO comes in! Let’s break it down in a simple, emoji-style guide 🧠🎯 for beginners.
📌 What is an IPO?
Initial Public Offering is when a private company offers its shares to the public for the first time via the stock exchange. 🏛️ It helps the company raise funds 💰 and gives investors a chance to become shareholders 🧍♂️📊.
🧬 Types of IPOs
There are mainly Two Types of IPOs:
- 📊 Fixed Price IPO: Company sets a fixed price for the shares.
- 📈 Book-Building IPO: A price range is given (e.g., Rs100–Rs120), and investors bid within this range.
🔎 How to Know About Upcoming IPOs?
You can find details about upcoming IPOs from:
- 📱 Finance apps like Groww, Zerodha, Upstox, Paytm Money
- 🌐 Official websites like NSE or BSE
- 📰 Financial news portals (Moneycontrol, Economic Times)
- 📧 Alerts from your broker platform
Stay updated to never miss a hot IPO! 🔔🔥
💡 What is IPO GMP?
GMP stands for Grey Market Premium. It’s the price at which IPO shares are traded unofficially before listing. 📈
Example:
- IPO Price: Rs100
- GMP: Rs40
- Expected Listing Price: Rs140
⚠️ Note: GMP is not official and purely speculative.
🧾 What is IPO Allotment?
After the IPO closes, the company reviews all applications and Allocates Shares. This is called IPO Allotment. ✅
- If demand High supply → Shares are Allotted via Lottery 🎲
- If demand Low supply → You Usually get Full Allotment 💯
You can check your Allotment Status On:
- 💻 Registrar websites (e.g., Link Intime, KFintech)
- 📱 Your Stock Broker App
🤔 What is IPO Grey Market?
The Grey Market is an unofficial market where people buy/sell IPO applications before listing. 🕶️
This includes:
- GMP (Premium)
- Kostak Rate (Price for Selling an Application Before Allotment)
- Subject to Sauda (Conditional Deals Before Listing)
⚠️ It’s not Regulated by SEBI, so Proceed with Caution.
📲 Here Are Some Apps is Best for IPO Information?
Here are some Top Apps for IPO Tracking in India:
- 🟢 Groww (50,000,000+Downloads)
- 🔵 Zerodha (Kite + Console) (10,000,000+Downloads)
- 🟣 IPO Premium (By Jaynath Infotech P.Ltd) (500,000+Downloads)
- 🟠 IPO Ji (1,000,000+Downloads)
- 🟡 Moneycontrol (10,000,000+Downloads)
This Downloads Data is On Dated 19-05-2025 09:33 PM On Google Play Store
These apps show:
- Upcoming IPOs
- Allotment status
- GMP (in some)
- Historical performance
🧾 Allotment, Demat Credit & Listing – What Happens Next?
- ✅ Allotment: Shares are Allocated to your Demat if successful.
- 📥 Demat Credit: Shares appear in your Demat Account before the listing date.
- 📅 Listing Day: Shares are listed on NSE/BSE and open for Public Trading.
If you didn’t get Allotment, 💵 your money is Refunded to your Bank Account.
📝 How to Apply for an IPO in India – Step-by-Step
✅ 1. Open a Demat & Trading Account
You need a Demat Account to Hold Shares and a Trading Account to Apply. You can open these with Brokers like:
- 🟢 Groww
- 🔵 Zerodha
- 🟣 Upstox
- 🟠 Paytm Money
📲 2. Log in to Your Broker App or Website
Access your broker platform (e.g., Groww, Kite by Zerodha) and go to the IPO section.
🔎 3. Choose the IPO
Select the IPO you want to Apply for from the list of Active IPOs.
🧾 4. Fill in Bid Details
- Investor Type: Usually Retail
- Lot Size: Minimum number of Shares (1 lot, 2 lots, etc.)
- Price: Choose cut-off price for retail investors (or bid a price in Book-Building IPOs)
🏦 5. Use UPI for Payment
- Enter your UPI ID (Linked with your Bank Account)
- Approve the Mandate Request in your UPI App (e.g., Google Pay, PhonePe, Paytm,BHIM)
- Funds will be Blocked in Lien Amount, not Deducted Immediately (Deducte After Successful Allotment, Otherwise Unlock IPO Amount From Lien)
📧 6. Check IPO Application Status
After Submission, You Can:
- Track Status on Broker App
- Or visit Registrar Sites like Link Intime or KFinTech (Whatever it is)
🎉 7. Allotment, Refund & Listing
- 📅 If Allotted: Shares are Credited to Your Demat Account in Next Working Day of Allotment.
- ❌ If not Allotted: Your Money is Unblocked/Refunded On the Next Business Day After the Shares are Credited
- 🛎️ On listing day, Shares are Available for Trading on NSE/BSE
✅ Trading Time on Listing Day (India – NSE/BSE)
On Listing Day, Price Discovery occurs during the pre-Open Session (9:00–9:45 AM).
Regular Trading 10:00 AM – 3:30 PM
The Listing Price is Determined based on Supply and Demand This can be Higher or Lower than the IPO price.
🧾 Understanding SME IPO Listing Price Movement
- SME IPOs (Small and Medium Enterprises) are listed on Patforms like NSE or BSE.
- Unlike Mainboard IPOs, SME IPOs have different rules for price bands and circuit limits.
- On listing day, SME stocks Cannot Open with a gain of more than 90% of the issue Price During the pre-open Session. This is a Restriction from the Exchange to Control Volatility and Manipulation.
🔒 Why SME IPO Cannot Open Above 90%?
- Exchanges like NSE and BSE Often Apply Listing Day Price Caps for SME IPOs:
- The Maximum listing price during the pre-open call auction session is often Restricted to 90% above the issue price.
- This is a Regulatory Safeguard to prevent Unreasonable Spikes due to Speculative Demand or price Manipulation.
📌 Example:
- IPO Price: Rs100
- Max Possible Listing Price (on pre-open): Rs190 (i.e., 90% above issue price)
Even if Market Demand would Otherwise Push it to Rs200+, it will be Capped at Rs190 in the Auction Matching Mechanism.
🕒 Post Listing:
- After the Stock Lists, it May Trade Freely (subject to SME Segment Circuit Limits, 5%-20%).
🏁 Final Thoughts
An IPO is your chance to be part of a Company’s Growth Story from Day 1! 🌱
But Always:
- Do Your Own Research 📚
- Don’t Blindly Follow GMP Rumors ❌
- Invest as Per Your Risk Profile 🎯
SEBI and Stock Exchanges update Rules Times to Time, Visit Official Website Of Them.
