IPO Glossary - Definitions, Abbreviations, Terminology and Meaning

Understand the meaning of popular words related to IPO.

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0 Feedbacks 1. Allottee
Allottee is the person to whom an allotment is made
0 Feedbacks 2. Anchor Investor
A Qualified Institutional Buyer(QIB), applying in an IPO under the Anchor Investor Portion and who has Bid for an amount of atleast ₹10 Crore.
0 Feedbacks 3. Anchor Investor Bid/Offer Period
One Working Day prior to the Bid/Offer Opening Date
0 Feedbacks 4. Anchor Investor Portion
Up to 60% of the QIB Portion
0 Feedbacks 5. ASBA
ASBA (Application Supported by Blocked Amount) is a way to apply in IPO by simply blocking the fund in the bank account.
0 Feedbacks 6. Bid/Offer Closing Date
Last day on which the IPO issue is closed to the public for bidding.
0 Feedbacks 7. Bid/Offer Opening Date
First day on which the IPO issue is open to the public for bidding.
0 Feedbacks 8. Book Running Lead Manager (BRLM)
Lead manager is a financial institution who work as a lead coordinator in IPO process
0 Feedbacks 9. Brokerage Fee
A brokerage fee is the fee that is charged by a broker for executing a transaction
0 Feedbacks 10. Floor Price
The lowest price of the price band is called floor price.
0 Feedbacks 11. IPO (Initial public offering)
An IPO is the first time sale of company shares to the public. Company's go to the public to raise funds. Once IPO shares allocated, they start trading on the exchanges.
0 Feedbacks 12. IPO Basis of Allotment
Basis of Allotment is a document containing the basics on which Equity Shares are allotted to successful bidders.
0 Feedbacks 13. IPO Bid
Bid represents the price at which someone is willing to buy shares in IPO.
0 Feedbacks 14. IPO Bid Lot
An IPO Bid-Lot is the number of shares which have to be applied for an investor.
0 Feedbacks 15. IPO Cut-off Price
IPO Cut-off price is the share price decided by the company based in the demand of IPO shares.
0 Feedbacks 16. IPO Draft Prospectus
A draft prospectus is a first legal document that a company files to SEBI prior to proceeding with an initial public offering (IPO)
0 Feedbacks 17. IPO Listing Date
The date on which shares officially quoted on the designated stock exchange for the trade
0 Feedbacks 18. IPO Lot Size
Lot Size refers the total number of shares investor can buy in one transaction
0 Feedbacks 19. IPO Offer Document
IPO Offer Document contains all the relevant information about the Issuer company and IPO.
0 Feedbacks 20. IPO Offer Price
Final price of an IPO on which a company sells its shares to investors.
0 Feedbacks 21. IPO Oversubscription
When the demand exceed supply in IPO subscription process is called oversubscription
0 Feedbacks 22. IPO Price Band
The price band of a book building IPO is the price range in which investors can bid.
0 Feedbacks 23. IPO Revision Form
Revision Form is the form which is used to revise the amount or quantity of Equity shares in IPO process
0 Feedbacks 24. IPO underwriters
IPO underwriters are group of representatives from investment banks
0 Feedbacks 25. IPO Working Day
Except Second and fourth Saturday, Sunday or a public holiday
0 Feedbacks 26. Non-institutional bidders (NII)
An Investor who can bid for the value of more than Rs 200000
0 Feedbacks 27. Non-Institutional Bidders / NIBs
Individual investors, NRI's, companies, trusts etc who bid for more than Rs 2 lakhs are known as Non-institutional bidders.
0 Feedbacks 28. QIBs / QIB Bidders / Qualified Institutional Buyers
Financial Institutions, Banks, FII's and Mutual Funds who usually apply in very high quantities are called QIB's
0 Feedbacks 29. Red Herring Prospectus (RHP)
Red Herring Prospectus is SEBI approve IPO prospectus document.
0 Feedbacks 30. Retail Individual Bidder(s) / RIB(s)
An Investor who cannot bid for the value of more than Rs 200000
0 Feedbacks 31. Self Certified Syndicate Bank(s) or SCSB(s)
SCSB is a bank which offers the facility of applying in IPO through the ASBA process.
0 Feedbacks 32. SME Platform
SME platform is a trading platform offered by BSE and NSE for listing and trading of SME companies in India.
0 Feedbacks 33. Sub broker
Sub Brokers is a SEBI authorized person who works on behalf of trading member
0 Feedbacks 34. Syndicate Members
Syndicate members are commercial or investment banks responsible for underwriting IPO's.

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