There are two types of IPOs. These are listed below : Fixed Price Issue – In this case, the issue price is pre ascertained by the issuer. Book Building – In this case, an indicative price range is declared by the company for a public offer of its equity shares. Interested investors place bids within this price range for the quantum of securities they want to subscribe to. Prospective investors can revise their bids at anytime during the bid period, that is, the quantity of shares or the bid price or any of the bid options. Usually, the bid must be for a minimum of 500 equity shares and in multiples of 100 equity shares thereafter. By recording the bids (quantum of shares ordered and the respective prices offered) received in a “book”, the issuer makes an assessment of the demand for the securities proposed to be issued. After the bid closing date, the book runner and the company fix the issue price and decide the allocation to each syndicate member. Thus, book building method helps in optimum price discovery for the security.

Primary Market refers to a market which provides the channel for creation and sale of securities. Primary market provides an opportunity to investors to apply & own stocks issued by the corporate (as well as the government) through an IPO (Initial Public Offer). A corporate raises capital from the public to meet its expansion plans or discharge financial obligations. The resources in this kind of market are mobilized either through the public issue in which anyone can subscribe for it, or through the private placement route in which the issue is made available only to a selected group of subscribers such as banks, FIs, MFs and high net worth individuals. In private placement, the stringent public disclosure regulations and registration requirements are relaxed since these securities are allotted to a few sophisticated and experienced investors,. The Companies Act, 1956, states that an offer of securities to more than 50 persons is deemed to be public issue. Secondary Market refers to a market where shares are traded after being initially offered to the public in the primary market. It is a market in which an investor purchases shares from another investor through stock exchange. Majority of the stock trading is done in the secondary market. The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risk and return. They also sell securities for cash to meet their liquidity needs.

The bidder has to pay the maximum bid price at the time of bidding based on the highest bidding option of the bidder. The bidder has the option to make different bids like quoting a lower price for higher number of shares or a higher price for lower number of shares. The syndicate member may waive the payment of bid price at the time of bidding. In such cases, the issue price may be paid later to the syndicate member within four days of confirmation of allocation. Where a bidder has been allocated lesser number of shares than he or she had bid for, the excess amount paid on bidding, if any will be refunded to such bidder.

We will soon be starting the facility of online IPO application which will enable you to enjoy a hassle-free experience with no botheration to fill tedious, lengthy forms, no requirement to sign cheques or physically deliver the form to the collection centre. Currently, to apply for an IPO, you can collect the IPO Application Form directly from your nearest Lakshmishree branch. To get a list of our branches, please Click Here

To apply for an IPO, the applicant needs to mention the details of his Bank account, Pan Card and Demat Account along with his other personal details in the IPO Application Form.

After several days of the IPO application days, the company comes up with the allotment list. You need to wait until with your money freezed in the account. Once you get your money back in your bank account on the day of IPO allotment, it is clearly understood that you aren’t allotted with the IPO. If you don’t see your money in your account on the allotment day, this indicated that you have been alloted for the no. of that IPO size.

-- Go to Lakshmishree website.
-- Click on Apply for IPO button on the Home Page. You will be redirected to the list of IPOs.
-- Select the one which you want to invest in.
-- Enter the Lot size & Credentials. Click the Submit Button & your Trading Account will be Debited.
OR
You can also Apply through Shree Varahi App.
-- Search for the IPO you want to invest in.
-- Enter the lot size. Submit the same. And let your Trading Account debits the amount for the applied IPO.

Purchasing the IPO has the same process as mentioned in the above situation of applying for the IPO.

You can go to the IPO section of the Shree Varahi App and check whether you can still see the IPO applied transaction in your account.