IPO Glossary
A comprehensive glossary of common IPO terms and their definitions.
Allotment
Distribution of shares to investors after IPO closes.
Bid
Application to purchase IPO shares at a specified price.
Cut-off Price
Fixed price for retail investors in IPO bidding.
Demat Account
Dematerialized account for holding securities electronically.
DRHP
Draft Red Herring Prospectus - preliminary IPO document.
Exchange
Stock exchange (BSE/NSE) where shares list after IPO.
GMP
Grey Market Premium - unofficial pre-listing price difference.
Grey Market
Unofficial market for trading IPO shares before listing.
HNI
High Net worth Individual - investor with Rs 2-10 lakh investment.
IPO
Initial Public Offering - process of offering company shares publicly.
Issue Price
Official price at which IPO shares are offered.
Lead Manager
Main investment bank managing IPO process.
Listing
Official debut of shares on stock exchange.
Listing Gain
Profit/loss on listing day vs issue price.
Lock-in Period
Period when shares cannot be sold after allotment.
Lot Size
Minimum number of shares per application.
Merchant Banker
Investment bank managing IPO proceedings.
Price Band
Range within which IPO shares are priced.
Prospectus
Official document with company details for IPO.
Retail Investor
Individual investor applying up to Rs 2 lakh.
SEBI
Securities and Exchange Board of India - regulator.
Share Certificate
Document proving share ownership.
Stock Exchange
Platform for trading securities (BSE/NSE).
Subscription
Demand for IPO - ratio of bids to shares offered.
Underwriter
Bank/institution guaranteeing IPO success.
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