IPO, i.e., Initial Public Offering, refers to the process where private companies sell their shares to the public to increase equity capital from public investors. The IPO is a process that converts a privately held firm into a publicly held company. The IPO process also initiates an opportunity where seasoned investors have a possibility to make some good returns on their investments.

An upcoming IPO is also a high possibility wherein a company may be planning to offer its shares to the public for the first time in the immediate future. Investing in IPOs can be a sound financial decision if you are a conversant investor. But not every new IPO is a viable opportunity. Benefits and risks are closely connected.

Why Do Investors Track An IPO After Applying?

Investors track an IPO after applying to check for allotment results, manage their blocked bank funds and plan their trading methods for the listing day.

IPO subscription reflects the total number of public subscriptions in an IPO. It indicates the demand for an IPO around the number of shares based on the applications received. There is a change in the IPO subscription number throughout the IPO window, and it is completed after the IPO bidding period shuts down.

How To Check IPO Subscription Status

You can check IPO subscription status on NSE and BSE websites. To know all IPO subscription status on the NSE:

• Visit the official NSE website.
• Select ‘IPO’ under ‘Primary markets’ under ‘Market Data’
• Then select the IPO whose subscription numbers you want to check the bid details.

To check IPO subscription status on BSE:

• Visit the official BSE website.
• Click on ‘Public issues’ within the ‘menu’ dropdown.
• Select the IPO subscription whose details you want to check
• Choose ‘Cumulative Bid Details’ to find out the subscription status.

Additionally, you can check the IPO subscription status on your broker’s platform.

What Is The IPO Allotment Process?

The IPO allotment process is the method used for distributing the shares of the issuing company to investors who have earlier applied for them during the IPO (initial public offering). There are numerous steps included in the distribution process, from the application to bid validation and the final allotment.

There are different mediums via which you can check your IPO allotment status. Firstly, you can directly check it online through the BSE Application Status Check page. Also, you can check on the registrar (RTA) or even stockbroker apps.

Reasons Why IP0 Allotment Is Necessary

• Fair and balanced distribution of shares, specifically in the case of oversubscribed IPOs.
• Clear and transparent allotment process monitored by the stock exchange and registrar.
• Developing investor confidence and promoting more participation in IPOs.
• Assisting companies to raise capital for future operations and growth objectives via share allocation to an expansive investor range.
• Adhering to SEBI guidelines and other compliance needs.

Besides investing in an IPO, the IPO grey market premium is the additional amount investors are willing to pay for an IPO share in the unofficial grey market prior to the shares being listed officially on the stock exchange.

Investors may want to use the IPO grey market premium as a benchmark for overall investor interest and anticipation of the listing price. A higher GMP reflects a good price at listing and a strong interest among investors, whereas a lower grey market premium may reflect weaker demand as well.

What is IPO Grey Market Trading?

The grey market in the Indian context of IPOs is an unofficial and unregulated area where IPO shares or the right to receive allotments are purchased and sold before the company officially lays out any recognised stock exchange.

Grey market trading is not fully banned by law under the Indian securities law. However, SEBI has mentioned that trading in listed or to-be-listed securities must be carried out via recognised stock exchanges. Grey market transactions lie outside of the Securities Contracts (Regulation) Act and SEBI Act’s jurisdiction completely. None of the framework offers any security and there are no civil regulatory measures for grey market disputes.

By examining these details through reliable and authorised sources, investors can stay updated throughout the IPO process. However these signs offer only partial information required to examine an IPO. Investors should also assess the company financial position, business approach, growth opportunities, valuation, offer details and related risks before making an investment decision. Taking into account all these factors can help investors make a more sound decision by differentiating between potential opportunities and risks rather than simply depending on subscription numbers or GMP by itself.