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How are shares alloted in IPO

Whenever any company offers their share for the first time in Public, its called as an IPO or Initial Public Offering. These shares are allotted to 3 types of Investors in specific quota. They are qualified institutional buyers, Non institutional investors, Retail investors. <br>You invest in upcoming SBI Card IPO(https://www.edelweiss.in/new-issues/ipo-listing/sbi-cards-payment-services-ltd-ipo-20149) where your money is invested to fund new SBI cards.

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How are shares alloted in IPO

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  1. What is IPO An initial public offering (IPO) refers to the process of offering shares of a privatecorporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering.

  2. Allotment of shares in IPO IPO shares are allotted to 3 types of Investors in specific quota. They are as follows: · Qualified Institutional buyers i.e QIB · Non Institutional Investors i.e NII · Retail Investors

  3. Process of IPO Allotment After some days of bidding, the process of allotment of shares in IPO begins. In IPO we cannot bid for any number of shares. The company that is issuing IPO decides the lot size and we can buy those shares only is those lots or their multiple. For Example if any company who is issuing IPO decides lot size of 10, then we have to either bid for lot of 10 shares or multiples of 10 i.e 2*10 or 5*10 etc. To invest in IPO we need to buy at least one lot of shares. If your bid is higher than 2 lakhs then you will have to apply from HNI category. If number of bids are more than number of lots then we say that IPO is oversubscribed. Apply for SBI Card IPO today!

  4. THANK YOU

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