Module 3 of 5 · Buying before it lists

IPOs

How an IPO works from DRHP to listing day, how allotment is really decided, and an honest look at GMP.

Lessons
7 lessons
Total reading time
about 23 min in total
Your progress 
Start with lesson 1

Lessons in this module

  1. What Is an IPO, and Why Does a Company Do One?beginnerAn IPO is a company selling shares to the public for the first time — and understanding who is selling tells you most of what you need to know. 3 min read
  2. DRHP and RHP: What to Actually ReadbeginnerThe offer document runs to hundreds of pages. Five sections carry almost all the useful information — here they are. 3 min read
  3. Book Building, Price Band and Lot SizebeginnerHow the IPO price is discovered, what the cut-off option really means, and why you can only apply in fixed lots. 3 min read
  4. Investor Categories: QIB, NII, Retail and Anchor InvestorsbeginnerAn IPO is divided into buckets, and which bucket you are in decides both your odds of allotment and how allotment is calculated. 4 min read
  5. How to Apply for an IPO: ASBA and the UPI MandatebeginnerYour money never leaves your bank account until shares are allotted. Here is exactly how the process works, step by step. 3 min read
  6. Allotment, Listing Day and What GMP Really IsbeginnerWhat happens between the issue closing and the first trade — and an honest explanation of the grey market premium. 4 min read
  7. Mainboard IPO vs SME IPOintermediateSME IPOs look like smaller versions of mainboard issues. They are a structurally different, higher-risk product with much larger minimum tickets. 3 min read