IPO Knowledge Base
What are greenshoe option and safety net?
Greenshoe is an option that allows the underwriting syndicate of an IPO to sell additional shares to public if the demand is high. The name comes from the fact that Green Shoe Company was the first to issue this type of option. A safety net means investors who subscribe to the IPO of a company [...]
Is it mandatory to have a demat account for applying in IPO?
Is it mandatory to have a demat account for applying in public issue (IPO)? An investor has the option to apply for and receive the shares in physical form. However, it is advisable to get the allotment in demat form as the shares in IPO shall be compulsorily tradable in demat segment in stock exchanges. [...]
Within how many days should the company get its securities listed after the IPO?
Within how many days should the company get its securities listed after the issue? The post-issue lead manager ensures that all steps for completion of the necessary formalities for listing and commencement of trading at all stock exchanges where the securities are to be listed are taken within 7 working days of finalisation of basis [...]
In case of non-receipt of the IPO refund order/share certificate/allotment advise, what is the course of action available to the investor?
In case of non-receipt of the IPO refund order/share certificate/allotment advise, what is the course of action available to the investor? The investor should complain in writing to the lead manger/registrar/Sebi’s Investor Grievance Cell.
Within how many days should an investor receive the refund order/allotment advise?
Within how many days should an investor receive the refund order/allotment advise? The investor is entitled to receive a confirmatory allotment note (CAN) in case he has been allotted shares within 15 days from the date of closure of a book-built issue. The registrar has to ensure that the demat credit or refund as applicable [...]
Can the public give their comments/complaints on the IPO issuer company?
Can the public give their comments/complaints on the IPO issuer company or others connected with the issue? Yes, the objective of making offer document public is to invite public comments. The comments should be given within 21 days of the filing of the draft offer document with Sebi.
What is the IPO basis of allotment?
What is the basis of allotment? In case of over-subscription in a fixed price issue, the allotment is done in marketable lots and on a proportionate basis. In case of a book building issue, allotment to Qualified Institutional Buyers (QIBs) and Non-Institutional Buyers (NIBs) are done on a discretionary basis. Allotment to retail investors is [...]
