Technically speaking, any adult who is competent to enter into a legal contract is eligible to apply in the IPO of a company. Of course, it is essential that you have a PAN card issued by the Income Tax department and you also have a valid demat account.Remember, having a trading account is not necessary in case of IPOs, a demat account alone is sufficient. However, if you want to sell the shares on listing then trading account will be required. That is why brokers will advise you to open a trading account along with demat account when you apply for an IPO for the first time. An important point to be remembered here! When you apply for an IPO, it is not an offer but an invitation to offer. Only when the IPO issuer offers you shares, it amounts to an offer.
Types of IPO: Fixed Price Issue Book Building Issue The issues differ on these factors which are tabled as below. Fixed Price Issue Book Building Issue Pricing The Share Price Is Fixed On The First Day Of Issue And Is Printed In The Order Document. The Exact Share Price Isn’t Fixed. Only The Price Band Is Fixed. The Price Is Fixed After The Closing Date Of The Bid. Demand It Is Known Only After The Close Of Issue. It Can Be Known Every Day. Payment The Payment Should Be Done 100% In Advance. Refund Is Given After The Allocation. The Payment Can Be Made After The Allocation. Reservations 50% Of The Allocations Are Reserved For Investments Below 2 Lakhs, And The Rest For High Amount Investors. 50% Of Allocations Are Reserved For The QIBs. 35% For Small Investors And The Rest To Other Categories Of Investors.
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