An Equity IPO (Initial Public Offering) is the process through which a private company offers its shares to the public for the first time. This helps the company raise capital while giving investors a chance to own a stake in a business at its initial valuation. Once listed, these shares can be traded on the stock exchange.

Types of Equity IPOs

  • Fixed Price IPO : The company sets a fixed price for its shares.
  • Book Building IPO : A price range is provided, and investors place bids within that range.
  • Offer for Sale (OFS) : Promoters or existing shareholders sell part of their holdings.

Key Features

  • Early Investment Opportunity : Invest in a company before its shares are listed on the exchange.
  • Potential for Listing Gains : Possibility of profits on the first day of listing, depending on demand.
  • Transparent Allotment Process : Allotments are regulated and follow a fair bidding or lottery system.
  • Online and Offline Application : Apply via your trading account, UPI, or ASBA-enabled bank account.
  • Participation Through Retail Quota : Individual investors benefit from a reserved quota and capped investment limits.
  • Company Disclosures Available : Access detailed company information in the draft red herring prospectus (DRHP).

Equity IPOs offer a gateway to invest in growing businesses and participate in their journey right from the beginning. With proper research and guidance, IPOs can add value to your investment portfolio.

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