About IPO
Initial public offerings allow private companies to access the public market for the first time and raise capital. The shift happens with the issuance of shares of stocks in a trading exchange. The people who purchase the shares at the IPO price can gain by selling those when they increase in value after listing.
Why Do Companies Launch IPOs?
IPOs provide financial fuel while enabling the public to invest alongside a company's journey.
- Companies undertake IPOs primarily to raise funds for growth initiatives. Capital raised can power expansion plans or research endeavors.
- Some businesses use the proceeds to reduce debt levels and strengthen their balance sheets.
- The IPO gives early backers and employees an opportunity to cash in their investments.
- Going public also increases visibility and brand awareness to attract more customers.
Who can invest in an IPO?
Anyone with an approved trading and Demat account will be able to invest in an IPO. Investors can generally be categorized as follows:
- Institutional Investors: This includes entities like banks and mutual funds.
- Retail Investors: They make investments up to ₹2 lakh in an IPO.
- Non-Institutional Investors: They have a net worth of more than ₹2 lakh.
Both experienced and novice individuals can invest. But the IPO allotment process may differ based on demand and investor type.
Steps to Invest in an IPO Online
Investing in an initial public offering has now become straightforward through web-based platforms. Here are the steps necessary to participate in an IPO electronically:
- One must first secure an active trading and demat account from any SEBI-approved broker.
- Subsequently, browse available IPOs and select the one you desire.
- Then, determine the number of shares sought and submit a bid within the stipulated price spectrum.
- The indicated amount will be blocked pending share allocation through the ASBA process.
- If shares are granted, they will be credited to the demat account, and funds will be deducted.
How to Apply for IPO?
India Infoline provides a simple pathway to engage with IPOs.
- Initially, sign into our account using valid credentials.
- Next, navigate to the "IPO" section visible on the dashboard.
- Here, choose the wanted IPO and fill in the application particulars.
- Lastly, submit the order and confirm the filled details.
- One can then track the allocation status through the platform. India Infoline streamlines the investor process by offering up-to-the-minute information on IPOs and allotment monitoring.
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