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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
1Alternative Investment Funds (AIF)AIF is a special category of SEBI-registered investment vehicles that collect funds from HNIs and institutions with an aim of high return for the benefit of investors.0
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.7
3ASBA 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.33
4Basis of Allotment (IPO)Basis of Allotment is a document containing the basics on which Equity Shares are allotted to successful bidders.0
5Bid/Offer Closing DateLast day on which the IPO issue is closed to the public for bidding.0
6Bid/Offer Opening DateFirst day on which the IPO issue is open to the public for bidding.0
7Book BuildingThrough book building method of IPO, the company assesses the demand and declares a price range for the bid.0
8Brokerage FeeA brokerage fee is the fee that is charged by a broker for executing a transaction0
9Draft Red Herring Prospectus (DRHP)A DRHP it covers a whole host of things - the financials of the company, the risk factors, and industry dynamics.0
10Floor PriceThe lowest price of the price band is called floor price.0
11IPO (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
12IPO AllotteeIPO allottee is the person to whom an allotment is made in an IPO1
13IPO BidBid represents the price at which someone is willing to buy shares in IPO.0
14IPO Bid LotAn IPO Bid-Lot is the number of shares which have to be applied for an investor.0
15IPO Cut-off PriceIPO Cut-off price is the share price decided by the company based in the demand of IPO shares.2
16IPO 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
17IPO Listing DateThe date on which shares officially quoted on the designated stock exchange for the trade0
18IPO Lot SizeLot Size refers the total number of shares investor can buy in one transaction1
19IPO Offer DocumentIPO Offer Document contains all the relevant information about the Issuer company and IPO.0
20IPO Offer PriceFinal price of an IPO on which a company sells its shares to investors.0
21IPO OversubscriptionOversubscription is when the demand for the shares in an IPO is more than the number of shares offered in an IPO.0
22IPO Price BandThe price band of a book building IPO is the price range in which investors can bid.0
23IPO Revision FormRevision Form is the form which is used to revise the amount or quantity of Equity shares in IPO process0
24IPO UndersubscriptionUnder Subscription is when the demand for shares in an IPO is less than the number of shares offered in an IPO.0
25IPO underwritersIPO underwriters are group of representatives from investment banks0
26IPO Working DayExcept Second and fourth Saturday, Sunday or a public holiday0
27Issue Size (IPO)Issue size in an IPO is given either as the number of shares or in value terms. e.g. 5,00,000 shares or Rs 500 Cr0
28Lead ManagerA lead manager is the merchant banker appointed by the issuer company to carry out the entire IPO process.0
29Lock-in periodThe selling of shares or other holdings in the issuer is restricted during the lock-in period for shareholders, promoters, investors, and company executives.0
30Market Maker for SME IPOMarket makers help listed companies in improving the liquidity and better price discovery of the stock. They simply infuse liquidity to thinly traded SME stock.1
31Net OfferNet offer is the net value of shares made available to the public in an IPO after considering the reservation quota in the issue.0
32Non-institutional bidders (NII)An Investor who can bid for the value of more than Rs 2000001
33Paid-up equity capitalThe paid-up capital is the money received by the company from the shareholders from the sale of its shares.0
34Private placementA private placement is a sale of shares or bonds to pre-selected investors rather than on the open market.0
35QIBs / QIB Bidders / Qualified Institutional BuyersFinancial Institutions, Banks, FII's and Mutual Funds who usually apply in very high quantities are called QIB's0
36Red Herring Prospectus (RHP)Red Herring Prospectus is SEBI approved IPO prospectus document.0
37Retail 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
38Return on Net WorthReturn on Net Worth (RoNW) denotes the profit earning capacity of the company on the shareholder's invested amount.0
39Self Certified Syndicate Bank(s) or SCSB(s)SCSB is a bank which offers the facility of applying in IPO through the ASBA process.0
40SME PlatformSME platform is a trading platform offered by BSE and NSE for listing and trading of SME companies in India.0
41Sub brokerSub Brokers is a SEBI authorized person who works on behalf of trading member0
42Syndicate MembersSyndicate members are commercial or investment banks responsible for underwriting IPO's.0
43UPI 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.2
44Venture Capital Fund (VCF)A venture capital fund is a SEBI-registered entity that collects money from investors who wish to invest in start-ups/early-stage companies in return for a certain percentage of equity.0
45Weighted AverageThe weighted average is the average of numbers with assigned weights.0