An Initial Public Offering (IPO) is the process through which a private company becomes publicly traded by offering its shares to the general public for the first time. This financial event marks a company's transition from private ownership to a publicly-listed entity on a stock exchange. During an IPO, a company typically issues new shares to raise capital for various purposes, such as expansion, debt reduction, or acquisitions. Investors can then buy and sell these shares on the open market.
To apply for IPO stocks in India, investors can fill out an online IPO application provided by stockbrokers and banks. Stockbrokers offer UPI-based online IPO applications, while banks offer both UPI and ASBA IPO applications
In order to stay updated on the IPO market, a list of IPOs in 2023 provides detailed information on IPOs that took place in that year at exchanges such as BSE, NSE, BSE SME, and NSE Emerge. By clicking on the company name, investors can access IPO details, reviews, analysis, IPO allotment status, bidding information, grey market premiums, IPO news, and performance.
IPO Terms:
IPO stands for Initial Public Offering. It's a process by which a private company becomes a public company by offering its shares to the public for the first time. Here are some key IPO terms:
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Issuer: The company that is offering its shares to the public for the first time.
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Underwriter: A financial institution or investment bank that helps the company go public by purchasing and reselling its shares.
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Offering Price: The price at which the shares are initially offered to the public.
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Prospectus: A legal document that provides details about the company, its financials, and the terms of the IPO.
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Securities and Exchange Commission (SEC): The regulatory body that oversees the securities industry, including the approval of IPOs in the United States.
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Lock-Up Period: A predetermined period after an IPO during which company insiders (such as employees and early investors) are restricted from selling their shares.
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Market Capitalization: The total value of a company's outstanding shares of stock, calculated by multiplying the stock price by the number of shares
- Exchange: The stock exchange where the IPO shares are proposed to be listed. Mainline IPO's are listed on BSE and NSE. The SME IPO's are listed on NSE EMERGE or BSE SME platform of the respective exchanges.
- IPO Open Date / Issue Close Date: The opening and closing date of the IPO bidding process. Investors can apply in an IPO during this time only.
- Lot Size: The minimum count of shares an investor can apply for in an IPO. A lot size of '400' means that an investor needs to bid for at least 400 shares.
- Issue Price: The price per equity share. There are 2 types of IPO's- Book Building and Fixed Price IPOs. Book Building IPOs will have a price range, say Rs 120-125 and investors need to bid within the price range. Fixed price issue has a specific price to bid.
- Issue Size: The total monetary value of the IPO. It is arrived by multiplying the number of shares offered by the company with the issue price per share.
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