Usually there are two markets in the stock market, the first Primary Market and Second Market. Companies we see are enlisted in the stock market, the stock we purchase and sell. But prior to throwing oneself into the secondary market, the company has to put forward an Initial Public Offering (IPO) in the primary market. Prior to IPO, a provide limited company can allocate or grant shares to 200 people in the structure of private placement.
Now the private limited company will have to become public limited company. Directly after the company can promulgate an IPO. IPO are subscribed by stockholder at a price bracket. IPOs are subscribed by stockholder at a price bracket. By putting forward an IPO, the company is enlisted in the secondary market.
Let us tell you many IPOs are going to be set in motion in the forthcoming days. You should know that 5 paisa.com is a finer platform for financial forethought or planning. Here you can also invest money in mutual funds. The unusual or market thing is that zero brokerage facility is available.
Also Read :-Explained Everything about the DCX Systems IPO
Know How You Can Invest In IPO
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Things You Will Need
- Demat account, trading Demat account, Mobile number linked to bank account and last UPI ID.
Know the Application Process
- First you need to log in to the broker’s trading app.
- Now go to IPO section then select Investor Type.
- Then choose the company in whose IPO money is to be invested.
- Enter the number of shares and the bid price.
- At last enter the UPI ID.
Why Amount Gets Blocked For a Few Days
After you made submission of the application for IPO, a mandate plea comes on your UPI app for acquiescence or consent. You need to log in to the UPI app and accept that mandate plea. Subsequent to this your money will be blocked.
Unblocking Blocked Amount
In case you do not get any shares that were allotted on the same day of share allotment, then the entire blocked amount will be unblocked. However, if you get some allotted shares, then the amount will be unblocked except for the amount of that number of shares.
Although if all the shares that you had applied for have been allotted to you, then the entire amount will be blocked or debited.
