Active IPO

Bid Time: 10:00 am to 5:00 pm

Note - IPO Apply Time: Cut-off time for online IPO application is 5:00 pm on the closing day (subject to change).

Initial Public Offer (IPO)

IPO- Own a company without owning it

IPO is the source for the company to raise funds from the primary market. Here, the company issues shares for the first time to the public. Once the company decides to sell its securities in the primary stock market, it gets listed on the stock exchange. Initial public offering (IPO) allows the company to raise the funds from the primary market- meeting the project costs and receive exposure in the market through the listing on the stock exchange.

When a company lists its shares on the stock exchange, the price paid by the investor for the issued shares is directly paid to that company. This allows the company to bring a huge number of investors to provide the funds for capital growth or compensating the debt. IPO is the instrument for the company to raise capital in a short duration and this is the very reason why many private companies go public.

IPO is a huge source of funds for a company with extensive maturity.

The Process To Invest In IPO:

To apply for IPO online you just need to:

  • Open Demat and Trading Account with ACMIIL.
  • Choose the running IPO available in Market.
  • Place your bid with your Valid UPI id's.

Who are eligible to invest in IPO?

Not all IPOs are open to general public. The underwriters decide the category of people whom they want to invest in their Company. So, there are three kinds of applicants,

  • Retail Individual Investor (RII) - if you are an investor who applies for small value of shares
  • Non-Qualified Institutional Investor (NII) - if you are an investor who applies for large value of shares and you do not qualify as Qualified Institutional Buyer category. They include Companies, NRIs, Corporate entities, Trusts, and Societies.
  • Qualified Institutional Buyer (QIB) - the investor who bids for securities is a financial institution which is declared as companies in the section 4A of the Companies Act or a foreign institutional investor who is registered with SEBI.

Why one should apply in an IPO?

  • Limited capital up to Rs.15000, which can be arranged easily
  • Convenient to invest - with UPI id the money will be blocked by BHIM application
  • The fund will unblock on 6th working day of IPO if shares are not allotted.

How to apply for IPO on

To apply for the IPO online with UPI, following are the steps to be followed:

  • Select the currently running IPO
  • Fill up the IPO bidding details on the screen.
  • Enter your UPI ID in the payment section.
  • Select lot size and bid price.
  • Now you will get a fund block request on your selected UPI app.
  • Approve the request to block the desired amount for the IPO.
  • Your funds will be blocked until allotment.
  • On allotment the blocked amount will be debited. If you didn't get the allotment the blocked funds will be credited to your account.
  • At any given point in time, UPI can become a mandatory payment method to issue IPO.
  • For a retail applicant, the limit for IPO application is Rs 2 lakhs per transaction on UPI.

Frequently asked Questions (FAQs):

Minors are allowed to apply for IPO only if certain conditions are fulfilled by the individual:

  • Demat account is mandatory
  • PAN number and bank account are required.
  • Because the minors do not have any source of income- they can use their parents/ guardian PAN number to open the Demat account. Minor’s bank account is not required.

To exit from the IPO, you can withdraw from the IPO application during the bidding period. Once the IPO is withdrawn, the blocked money will be credited to your account. aims to keep its investors updated about all kinds of investments and financial products. You can like and follow our social media on Instagram and Facebook. Also, we send the push notification on the mobile app and desktop as well. For all the latest updates, you can visit our website-

As being an IPO investor, you can revise bidded book building IPO quantity and price during the issue open for the subscription. To know more about how to revise the IPO application, you can ask our executive and they will share the relevant details with you about the IPO revision form.

There are two types of IPO:

  • Fixed price offering- Here, the company decides the issue price for their initial stock sales. The investor will learn about the stock price which the company decides for the public to purchase. Once the issue is closed, the demand for the stocks is then well-known in the market. If any investor shows interest in the latest IPO investment of the particular company, while making the IPO application- an investor has to shell out the complete share price.
  • Book Building offering- The Company that issue IPO, a 20% price band is offered on the shares to the investors. Interested investors shall bid the price on the shares before the final rate is confirmed by the company. During the bidding, investors have to state the total number of shares they are willing to purchase and the price they will pay for each purchased share. Regarding the share price, the final rate shall be determined by the company based on the investor’s bid.
Investor Maximum IPO limit
Retail Investor (RII) ₹2,00,000
Non-Institutional Investor (NII) < ₹2,00,000
Qualified Institutional Bidders (QIBs) Reserved quota up to 50% in IPO allotment
Anchor Investor < ₹10 Crore

No. IPO bidding is a process; hence IPO allotment depends on the total number of bids received in the category and the price at which investor has applied for shares.

Once IPO is closed, the registrar of the issue will then collect the complete bidding information and prepare ‘Basis of allotment’. Once the basis of allotment document is drafted, it will provide the information about all the bids received from the different investors at different price and in the different patterns of allotment.

The price band is a band of price within which investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. The price band can be revised. If revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding thirteen days.

As the name suggests, a "Fixed Price Issue" is an initial public offering (IPO) where the issuer at the outset decides the issue price & mentions it in the offer document.

It is a process of price discovery. In a "Book Built Issue" the price of an issue is discovered on the basis of demand received from the prospective investors at various price levels.

A Bid-lot is the pre-determined number of shares which have to be applied for by an investor. It is different for each issue. There is a minimum lot size which is pre-decided by the company and mentioned in the application form. Eg: Minimum bid lot in IPO of XYZ co. - 10 Bid-lot Multiples of 10 Price Band - 100-120. It means that a retail investor cannot apply for less than 10 shares in that particular issue. The application for more than 10 shares has to be in multiples of 10 like 20,30,40,etc.

A retail investor can bid at any price within the price band or can bid at cut-off. "Cut-off price" means the investor is ready to pay whatever price is decided by the company at the end of the book building process. While making the application at Cut off, the investor is required to pay the amount at the highest price band. The excess amount, in case the price discovered is lower, is refunded. Cut-off option can be exercised only by Retail Investors and Employees of the issuing company applying in the Employee Category.

Pricing of an issue where one category is offered shares at a price different from the other category is called differential pricing. In DIP Guidelines differential pricing is allowed only if the securities to applicants in the firm allotment category is at a price higher than the price at which the net offer to the public is made. The net offer to the public means the offer made to the Indian public and does not include firm allotments or reservations or promoters' contributions.

Once the subscription closes, one can make out probability of allotment.

e.g. XYZ ltd. issues IPO with lot size of 60, let's assume that retail subscription was 5 times after closure.

So it's clear that people who applied for 5 lots will definitely get at least 1, but for those who applied for less than 5 lots it will be done on lottery basis. i.e. for those who applied for say 1 lot 1 of every 5 will get allotment.

You can check the allotment of shares in your Demat account linked to ACMIIL trading account on date of IPO order.

The Initial Public Offering does not trigger any taxation. Taxes only apply when you sell the shares. Any gains over your cost-basis are taxed as capital gains. If you sell shares you have owned for less than 12 months for a profit, those gains are categorized as short-term gains. More than 12 months is considered long term

The rate that applies depends on all of the gains and losses incurred during the tax year. Net short-term gains are taxed at the same rate ordinary income would be. Net long-term gains are taxed at lower rates.

The refund amount will be either directly credited to the Bank account linked with your DP account or will be mailed by the Registrar in the form of Refund Cheque to the address mentioned in your DP account. It usually takes 3 to 10 days to get IPO refunds after IPO allotments are done by the registrar of the IPO.

Forthcoming IPO

Bid Time: 10:00 am to 5:00 pm

Note: Cut-off time for online application is 5:00 pm on the closing day (subject to change).

Close IPO

Bid Time: 10:00 am to 5:00 pm

Note: Cut-off time for online application is 5:00 pm on the closing day (subject to change).

Transaction Report

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