What is IPO? What is the process of applying for IPO?

[Guru]

<p style=”margin: 0px 0px 28px; padding: 0px; word-wrap: break-word; box-sizing: inherit; color: #111111; font-family: Lato, sans-serif;”><span style=”color: #545454; font-family: arial, sans-serif; font-size: small;”>An </span><span style=”font-weight: bold; color: #6a6a6a; font-family: arial, sans-serif; font-size: small;”>initial public offering</span><span style=”color: #545454; font-family: arial, sans-serif; font-size: small;”> (</span><span style=”font-weight: bold; color: #6a6a6a; font-family: arial, sans-serif; font-size: small;”>IPO</span><span style=”color: #545454; font-family: arial, sans-serif; font-size: small;”>) is the first time that the stock of a private company is offered to the public.</span></p>
<p style=”margin: 0px 0px 28px; padding: 0px; word-wrap: break-word; box-sizing: inherit; color: #111111; font-family: Lato, sans-serif;”>There are two ways to invest in IPO’s<br style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;” /><strong style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;”>Online mode<br style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;” />Offline mode</p>
<p style=”margin: 0px 0px 28px; padding: 0px; word-wrap: break-word; box-sizing: inherit; color: #111111; font-family: Lato, sans-serif;”><strong style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;”>Investing in IPO’s online (through the internet)<br style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;” />This is the simpler of the two methods. To get started in investing in IPO’s you will need to open a demat account cum trading account (To do this you will need a bank account and a PAN number). After opening your demat and trading accounts you will need to login through your trading account and select the IPO you wish to invest in. Transfer funds from your bank account to your trading account. Select the number of shares you want to apply for and the price at which you want to bid for (or use cut off option). If you get the shares allotment, the shares will be credited to your demat account. The IPO refund will be sent by cheque to your postal address or through ECS to your bank account.</p>
<p style=”margin: 0px 0px 28px; padding: 0px; word-wrap: break-word; box-sizing: inherit; color: #111111; font-family: Lato, sans-serif;”><strong style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;”>Investing in IPO’s offline<br style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;” />Here you will need only the demat account. Trading account is not necessary unless you decide to sell the shares you have been allotted through IPO’s. You will have to visit your nearest broker and get the IPO application form, fill it up and give the filled form along with the cheque to the broker. You will be given an acknowledgement form. If you apply for more than Rs. 50,000 you will need to attach a photocopy of your PAN card with the IPO application form.</p>
<p style=”margin: 0px 0px 28px; padding: 0px; word-wrap: break-word; box-sizing: inherit; color: #111111; font-family: Lato, sans-serif;”><strong style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;”>Online or offline : Which method should I choose?<br style=”margin: 0px; padding: 0px; word-wrap: break-word; box-sizing: inherit;” />It depends. Online mode is more convenient and saves time, effort maybe money too (if you consider fuel cost). But you won’t be able to give a stop payment if you decide to change your mind after applying. If you are doubtful about investing in an IPO, its always better to use the offline mode to invest in that IPO.</p>

[sriram]

IPO stands for Initial Public Offering, Companies in need of capital can generate the same by issuing shares to public

after being approved by SEBI.

[Saravana Karthik]

IPO is Initial Public Offer.IPO is a primary market .When company wants to raise investment capital or fund for Development of business . They will approach the public to collect the money and gave their shares.

[HARISH]

IPO means initial public offer.The company want to develop or raise the capital they collect the public money and they give the owner ship of  the company as share certificate

[Arulmoli]

IPO is Initial Public Offering.

As an investor (assuming that the investor has DEMAT a/c and PAN and his DEMAT a/c is linked to his bank a/c) , one can apply through any registered stock broker after mentioning bid price and bid qty in the IPO valid time frame published by any registered company/Firm.

[Author]

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