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IPO Trading FAQs
IPO or Initial Public Offering is the first sale of stock by a company to the public. It is a way for the company to raise money from investors for its future projects or the selling of securities to the public in the primary stock market.
You can easily apply for an IPO online through UPI facility through Dhani Stocks App. You can select the IPO, enter the number of Lots, enter UPI ID and then authorize the bid on UPI app. After the authorization, the bid is placed.
Initial Public offering of the following financial instruments are offered
1. Equity shares
2. Non-convertible debenture
Fixed Price Issues - Price at which the securities are offered and would be allotted is made known in advance to the investors. Demand for the securities offered is known only after the closure of the issue. 50% of the shares offered are reserved for applications below Rs. 2 lakh and the balance for higher amount applications.
Book Building Issues - 20% price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding. Demand for the securities offered at various prices is available on a real-time basis on the BSE and NSE during the bidding period.50 % of shares offered are reserved for QIBS, 35 % for Non Retail and 15% for Retail Investors.
An IPO price band is the offer price of a company’s shares. The seller indicates an upper and lower cost limit, between which buyers can place bids.