IPO Glossary - Definitions, Abbreviations, Terminology and Meaning

Understand the meaning of popular words related to IPO.

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IPO Definitions, Abbreviations, Meanings

S No Term Definition Feedback
1AllotteeAllottee is the person to whom an allotment is made1
2Anchor InvestorA Qualified Institutional Buyer(QIB), applying in an IPO under the Anchor Investor Portion and who has Bid for an amount of atleast ₹10 Crore.4
3Anchor Investor Bid/Offer PeriodOne Working Day prior to the Bid/Offer Opening Date0
4Anchor Investor PortionUp to 60% of the QIB Portion0
5ASBAASBA (Application Supported by Blocked Amount) is a way to apply in IPO by simply blocking the fund in the bank account.0
6ASBA IPO ApplicationIPO Application Supported by Blocked Amount (ASBA) facility allows investors to apply in an IPO through the net-banking facility offered by the bank.21
7Bid/Offer Closing DateLast day on which the IPO issue is closed to the public for bidding.0
8Bid/Offer Opening DateFirst day on which the IPO issue is open to the public for bidding.0
9Book Running Lead Manager (BRLM)Lead manager is a financial institution who work as a lead coordinator in IPO process0
10Brokerage FeeA brokerage fee is the fee that is charged by a broker for executing a transaction0
11Floor PriceThe lowest price of the price band is called floor price.0
12IPO (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
13IPO Basis of AllotmentBasis of Allotment is a document containing the basics on which Equity Shares are allotted to successful bidders.0
14IPO BidBid represents the price at which someone is willing to buy shares in IPO.0
15IPO Bid LotAn IPO Bid-Lot is the number of shares which have to be applied for an investor.0
16IPO Cut-off PriceIPO Cut-off price is the share price decided by the company based in the demand of IPO shares.0
17IPO Draft ProspectusA draft prospectus is a first legal document that a company files to SEBI prior to proceeding with an initial public offering (IPO)0
18IPO Listing DateThe date on which shares officially quoted on the designated stock exchange for the trade0
19IPO Lot SizeLot Size refers the total number of shares investor can buy in one transaction0
20IPO Offer DocumentIPO Offer Document contains all the relevant information about the Issuer company and IPO.0
21IPO Offer PriceFinal price of an IPO on which a company sells its shares to investors.0
22IPO OversubscriptionWhen the demand exceed supply in IPO subscription process is called oversubscription0
23IPO Price BandThe price band of a book building IPO is the price range in which investors can bid.0
24IPO Revision FormRevision Form is the form which is used to revise the amount or quantity of Equity shares in IPO process0
25IPO underwritersIPO underwriters are group of representatives from investment banks0
26IPO Working DayExcept Second and fourth Saturday, Sunday or a public holiday0
27Non-institutional bidders (NII)An Investor who can bid for the value of more than Rs 2000000
28Non-Institutional Bidders / NIBsIndividual investors, NRI's, companies, trusts etc who bid for more than Rs 2 lakhs are known as Non-institutional bidders.0
29Private placementA private placement is a sale of shares or bonds to pre-selected investors rather than on the open market.0
30QIBs / QIB Bidders / Qualified Institutional BuyersFinancial Institutions, Banks, FII's and Mutual Funds who usually apply in very high quantities are called QIB's0
31Red Herring Prospectus (RHP)Red Herring Prospectus is SEBI approve IPO prospectus document.0
32Retail Individual Bidder(s) / RIB(s)An individual bidder who bids in an IPO for the Equity Shares for an amount not more than Rs 200,000 falls under the retail investor's category.0
33Self Certified Syndicate Bank(s) or SCSB(s)SCSB is a bank which offers the facility of applying in IPO through the ASBA process.0
34SME PlatformSME platform is a trading platform offered by BSE and NSE for listing and trading of SME companies in India.0
35Sub brokerSub Brokers is a SEBI authorized person who works on behalf of trading member0
36Syndicate MembersSyndicate members are commercial or investment banks responsible for underwriting IPO's.0
37UPI IPO ApplicationAn investor can apply in an IPO using UPI as a payment option. The Unified Payment Interface (UPI) platform blocks the fund for IPO application after the customer approves the fund block mandate request.3