A comprehensive reference dictionary for Indian IPO investors. Master every technical financial term from Grey Market Premium and Kostak rates to ASBA bidding, SEBI quotas, and registrar allotments.
An unofficial over-the-counter (OTC) cash premium quoted by unofficial dealers before an IPO lists on BSE/NSE. It reflects investor appetite and anticipated debut listing gains.
A fixed rupee amount paid by an unofficial buyer to purchase an entire IPO application prior to allotment. The applicant receives this payout regardless of whether shares are allotted.
A conditional OTC agreement where the buyer pays the seller an agreed profit only if the applicant is allotted shares in the registrar lottery. If zero allotment occurs, the payout is ₹0.
The price range within which investors can bid for shares in a book-built issue, established with a floor price (minimum) and a cap price (maximum).
The final issue price determined by the company and lead managers after evaluating all bids. Retail investors applying at cut-off price agree to purchase at whatever clearing price is finalized.
The minimum number of equity shares an investor must bid for in an IPO. In Mainboard issues, lot sizes are structured so the minimum application value is ₹14,000–₹15,000.
The preliminary registration document submitted to SEBI and stock exchanges containing business operations, promoters, financial statements, and object of the issue before approval.
The official offering circular filed with the Registrar of Companies (RoC) that contains all definitive business disclosures and issue details, excluding the final price.
A Qualified Institutional Buyer (QIB) that applies for a minimum of ₹10 Crore in a public issue one day before the IPO bidding window officially opens to retail investors.
A mechanism where existing promoters or early venture investors liquidate part of their holding. The IPO capital raised through OFS goes directly to selling shareholders, not the company.
New shares issued by the company to the public. Funds raised through a fresh issue are infused directly into corporate operations for debt repayment, capex, or working capital.
An individual resident or NRI investor who bids for a total application value not exceeding ₹2,00,000. Reserved minimum 35% in profitable book-built issues.
Non-Institutional Investors bidding for amounts greater than ₹2 Lakh up to ₹10 Lakh. SEBI reserves 1/3rd of the total 15% NII quota for this category, allocated via randomized lottery.
High-Net-Worth Individuals (HNIs) and corporate entities applying for amounts exceeding ₹10 Lakh. Allocated 2/3rd of the 15% NII quota.
Institutional entities such as mutual funds, foreign portfolio investors (FPIs), banks, and insurance companies registered with SEBI. Allocated 50% of the book-built issue.
A statutory mechanism where bid funds remain in the investor’s own bank account earning interest and are blocked via UPI mandate until allotment is finalized.
The official allocation formula determined by the registrar under stock exchange supervision, detailing oversubscription multiples and lottery winning probabilities per category.
A SEBI-registered entity (such as Link Intime, KFintech, or Bigshare Services) responsible for processing bids, determining allotment, and dispatching demat credits and refunds.
The statutory settlement standard where an IPO lists on stock exchanges within 3 working days after the issue closing date (T+1 Allotment, T+2 Demat/Refunds, T+3 Listing).
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