Educational guide
IPO Investing in India — How to Apply, Allotment & Listing Gains
IPOs are not a sure-shot listing-gains lottery. Understanding the bidding mechanics tells you when an IPO is worth the locked-up capital.
// the process
Company files a Red Herring Prospectus → SEBI clearance → 3-day book-built bidding → allotment within T+3 → listing on T+6 (under SEBI's current timeline). Retail bids must be in lots and at or above the floor price.
// asba and allocation
All bids are placed via ASBA — your bank blocks the bid amount in your account until allotment. Funds are debited only on allotment. Retail (< ₹2L bids) is allotted on a lottery basis when oversubscribed.
// reading an ipo
Look at: GMP (grey market premium), QIB and NII subscription levels, P/E vs listed peers, anchor investor quality, and the use of proceeds. Strong oversubscription + listed-peer parity + tight valuation usually point to durable listing gains.
// frequently asked questions
No — multiple applications from the same PAN are rejected. One PAN can submit only one retail bid per IPO.