FAQ
Quick answers to common IPO questions.
Simple explanations for retail investors.
An IPO, or Initial Public Offering, is when a company offers shares to public investors for the first time and becomes listed on a stock exchange.
The offer can contain newly issued shares, shares sold by existing shareholders, or both. QuickIPO explains that split separately so you can see where the money actually goes.
In a fresh issue, the company creates new shares and the money raised goes to the company for the uses described in the offer document.
In an Offer for Sale (OFS), existing shareholders sell shares they already own, so that portion of the money goes to the selling shareholders rather than to the company.
You normally apply through your broker, bank or another supported investment platform during the IPO application window. You select the number of lots, choose a valid bid price when required, and complete the payment-blocking process through UPI or ASBA.
QuickIPO explains the IPO; it does not accept applications or place bids for you.
The lot size is the minimum number of shares in one IPO application unit. If an IPO lot contains 1,000 shares, you generally apply in multiples of that lot rather than choosing any number of shares you want.
The money required therefore depends on both the issue price and the lot size.
ASBA stands for Application Supported by Blocked Amount. Instead of paying the IPO application money immediately, the required amount is blocked in your bank account while the application is processed.
If you receive shares, the appropriate amount is debited. If you do not receive an allotment, the blocked amount is released according to the process followed by your bank and the issue.
A UPI mandate may remain pending because it has not yet been received, approved, processed or reflected by one of the systems involved. Check your broker application status, your UPI app and the mandate deadline.
If the mandate is not approved within the permitted time, the application may not become valid. For a live application problem, use your broker, bank or UPI provider support rather than relying on QuickIPO.
Submitting a valid application earlier in the IPO window does not by itself create a special priority simply because it was placed first.
Allotment depends on the applicable allocation rules, demand in your category and whether your application is valid. Applying before the deadline is still sensible because it gives you more time to fix payment or mandate problems.
If you do not receive shares, the application amount that was blocked should be released according to the IPO and banking process. You do not receive shares simply because you applied.
The exact release timing can depend on the bank, UPI system and issue schedule.
GMP means Grey Market Premium. It is an unofficial indication of the price at which IPO shares are being discussed or traded outside the recognised stock-exchange market before listing.
QuickIPO labels GMP as unofficial and keeps it separate from verified company fundamentals and exchange data.
No. GMP is unofficial, can change quickly and does not guarantee the listing price or any return.
QuickIPO may show GMP as market context, but it should never be treated as proof that an IPO is safe, fairly valued or certain to list at a profit.
On listing day, the allotted shares begin trading on the relevant stock exchange. The market price can open above, near or below the issue price and can continue moving after trading starts.
A strong listing is a market outcome; it does not by itself prove that the underlying business is strong.
Yes. An IPO can list below its issue price and can also fall below the issue price later.
Market prices respond to demand, valuation, broader market conditions and new information. IPO returns are not guaranteed.
Still have a question? Search Research & Help →