IPO Dashboard

The word IPO stands for initial public offering, wherein a private company offers its shares for the first time to the public to raise funds. A successful completion of the IPO results in the company turning into a public entity.

The main difference between mainboard and SME IPO is in terms of size. Mainboard issue are typically by larger and more established companies while SME IPOs are issued by small and medium enterprises. Mainboard companies list on the BSE and NSE while SME IPOs are listed on NSE Emerge or BSE SME platform.

In an IPO the company is offering its shares to the public for the first time, as indicated by the word "initial". The IPO helps it transform from a private to a public company. Meanwhile, an FPO (follow-on public offer) is when a listed company offers additional shares to the public.

Grey market is an unofficial market where the shares of an ongoing or upcoming IPO are traded before they are listed on the exchanges. Since the market regulator Sebi doesn't recognise this market, there are no regulations involving it.

To apply for an IPO you need a Demat account. A demat account is needed to hold IPO shares in case of an IPO allotment.

In case an IPO is undersubscribed, meaning it has not received 100% bids for the shares offered, all the applicants receive the IPO allotment. However, in case the IPO is oversubscribed, the IPO shares are allotted on a lottery-based system.

Yes, gains made from IPO are taxable. If an investor sells IPO shares in less than a year, then STCG of 20% would be applicable. Taxes on gains over long-term (made over 1 year) will be applicable in case of returns over ₹1.25 lakh in a year.