Joshi's Blog

  Things About IPOs that Deserve You Attention as an Investor In India, IPOs are going through an interesting phase. People who understand the concept of IPOs, love investing in them and the ones who are oblivious to it stay away. For the uninitiated, the full form of this term is Initial Public Offering . Companies looking to raise capital for their business, offer their stocks to the people. The first investors of these stocks get their shares through an IPO . After the allocation, these stocks are listed in the stock market and investors have a choice to retain them or sell them off depending on the market situation. There are many things that you should know about IPO investment . Here are some of them:   Grabbing the Opportunity Early   If a particular share appreciates in value after getting listed, the investor who bought it at its initial offering price benefits the most out of it. IPOs provide an early mover advantage to people who show trust in the company ...

  What is cut-off price in IPO? Nowadays, the term IPO is heard a lot in our regular lives. You will read about it in newspapers, hear about it in television ads and it will also be part of the TV news. For companies, whenever they want to raise funds, they will opt for the route of Initial Public Offerings. It will list the company on a different platform. It can be an NSE IPO or listed in other stock exchange. While going for IPO, the company will inform in the red-herring prospectus, the need for it and how the funds are going to be utilised and they also mention the floor price or price range and the number of shares per lot. IPO is of two types – Book Building Method and Fixed Price Method: Fixed Price Method In the Fixed price type, you will know in advance the price at which the shares will be allotted to the investors. In this method, the details of the subscription level by retailers or High net worth or institutional investors are not known on daily basis and are ...