What is an IPO?
An Initial Public Offering is the first sale of shares by a company to the public. The company raises money, existing shareholders may sell part of their stake, and afterwards the shares are listed and traded on the NSE or BSE.
IPO Questions & Answers
29 questions we are asked most often — about applying, cut-off times, allotment, GMP, listing day and how this site works.
IPO Basics
What is a price band?
The price band is the range within which you can bid, for example ₹100 to ₹105. The final issue price is discovered inside that range from the demand collected during the bidding period.
What is the cut-off price?
Bidding at cut-off means you accept whatever final price is discovered. Only retail investors may use it. Your bank blocks the cap price and refunds the difference if the final price comes in lower.
What is lot size and minimum order quantity?
A lot is the smallest number of shares you can apply for, and bids must be in whole multiples of it. A Mainboard lot usually works out to about ₹14,000–₹15,000; an SME lot is ₹1 lakh or more.
What is the difference between a Mainboard and an SME IPO?
Mainboard issues list on the main platforms of the NSE and BSE under SEBI’s full eligibility norms. SME issues list on NSE Emerge or BSE SME, are smaller, have a much larger minimum application, and trade in lot multiples after listing.
Applying for an IPO
How do I apply for an IPO?
Through your broker’s app or website using UPI, or through your bank’s net banking under ASBA. You need a demat account and a PAN. Choose the number of lots, bid at cut-off if you are a retail investor, and approve the UPI mandate before the cut-off time.
Can I apply for an IPO on OpenIPO?
No. OpenIPO is an information website. IPO bids can be placed only through a SEBI-registered broker or your bank’s UPI-ASBA facility. We never ask for your PAN, bank details or UPI ID.
What is ASBA and how is my money blocked?
Application Supported by Blocked Amount means the application money is frozen in your own bank account rather than debited. It is debited only if you receive an allotment, and it continues to earn interest until then.
What is a UPI mandate and why did my application fail?
When you apply through a broker, a block request arrives in your UPI app. If you do not approve it before the cut-off, the application is rejected. An unapproved mandate is the most common cause of a failed retail application. Check the pending requests section of your UPI app rather than only your notifications.
What is the last time to apply on the closing day?
Retail applications generally have to reach the exchange by 5:00 pm on the closing day, with the UPI mandate approved by 5:00 pm as well. Most brokers set an earlier internal cut-off — often 2:00 pm to 4:00 pm — so treat the closing day as a morning deadline.
Can I apply more than once with the same PAN?
No. Only one application per PAN is allowed in a category, and duplicates cause all of them to be rejected. Separate family members with their own PAN and demat account can apply separately.
Can I change or cancel my bid?
Retail investors can revise or withdraw a bid until the issue closes. QIB and NII applicants may revise upwards but cannot withdraw once the bid is submitted.
Can I apply without a demat account?
No. Allotted shares are credited electronically, so a demat account with NSDL or CDSL is mandatory. Opening one through a broker usually takes a day.
Subscription & Allotment
What does subscription status mean?
It shows how many times an IPO has been applied for against the shares on offer. Retail at 3.2x means retail investors bid for 3.2 times the shares reserved for that category. You can follow it live on our subscription status page.
Does applying for more lots improve my chance of allotment?
Not in the retail category when the issue is oversubscribed. Allotment then moves to a computerised lottery in which each eligible application gets one entry, so several single-lot applications across different PANs are treated better than one large application.
How do I check my IPO allotment status?
On the registrar’s website using your PAN, application number or demat ID, or on the BSE and NSE allotment pages. Our allotment page links directly to the correct registrar for each issue.
When is my money unblocked if I do not get an allotment?
Normally on the working day after the basis of allotment is finalised. If the block is still showing after that, raise it with your bank — the registrar has already released it.
Why was my application rejected even though the IPO was undersubscribed?
Technical rejections happen regardless of demand — a PAN and demat name mismatch, an inactive or wrong demat number, a duplicate application on the same PAN, or an unapproved mandate.
What happens if an IPO is undersubscribed?
If the issue does not receive at least 90% subscription, it must be withdrawn and all application money returned.
GMP & Listing
What is GMP (Grey Market Premium)?
GMP is the unofficial premium at which IPO shares change hands before listing, quoted by grey market dealers. No exchange, regulator or registrar publishes it and nobody audits it.
Is GMP reliable?
No. It is a sentiment indicator, not a forecast. GMP can move several times a day, it is easy to manipulate in a thin market, and issues with a high GMP have listed flat or at a discount many times. Never size an application on GMP alone.
When do IPO shares list?
Within three working days of the issue closing, under SEBI’s T+3 timeline. Trading begins with a special pre-open session from 9:00 am to 10:00 am that discovers the opening price.
Can I sell on listing day?
Yes, once the shares are credited to your demat account and trading opens. Newly listed shares have circuit limits, and SME shares can only be traded in lot multiples, so an exit at your preferred price is not guaranteed.
What is anchor lock-in and why does it matter?
Anchor investors cannot sell half their shares for 30 days and the rest for 90 days after allotment. Those expiry dates often bring extra selling pressure in a newly listed stock.
About OpenIPO
Where does OpenIPO get its data?
From SEBI offer documents (DRHP, RHP and prospectus), the NSE and BSE issue portals, and the registrars. GMP is the exception: it is indicative and comes from grey market dealers. Our about page lists every source.
How often is the data updated?
Subscription and GMP figures are refreshed through the day while an issue is open, and each IPO page shows when it was last updated. Where sources disagree we prefer the exchange or the prospectus and leave a field blank rather than publish a guess.
Is OpenIPO SEBI registered? Do you give investment advice?
No on both counts. We are not a SEBI-registered investment adviser or research analyst, and nothing on this site is a recommendation to apply for or avoid any IPO.
Is OpenIPO free? How does the site make money?
The site is free. It is funded by advertising and by affiliate links to broker account-opening pages. Those links never change what we publish about an IPO.
I found a wrong figure. How do I report it?
Email openipo.in@gmail.com with the page link and the correct figure with its source, or use our contact page. Corrections get priority.
Still stuck?
Look up a term in the IPO glossary, read the step-by-step application guide, or write to us. We cannot place, change or cancel a bid for you — that is between you and your broker.