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Beginner English · HinglishFree

IPO Investing Guide

How a company lists, how to read its offer document and how to apply.

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6
Lessons
3
Chapters
7
Diagrams
42
Practice questions
58 min
Time

What you'll be able to do

  • Follow an IPO from filing to listing
  • Read the parts of a DRHP that matter
  • Apply with UPI and understand allotment
  • Judge grey market talk for what it is

Course syllabus

Every lesson has worked examples, diagrams, key terms, common mistakes and a practice check.

  1. 1

    Chapter 1

    How an IPO works

    • How an IPO Works 10 min

      An IPO is a company selling shares to the public for the first time. Follow the journey from filing to listing.

    • Reading the DRHP Like an Analyst 10 min

      The offer document is long, but five sections tell you most of what matters. Here is where to look.

  2. 2

    Chapter 2

    Applying

    • Applying Through UPI (ASBA) 9 min

      Your money is blocked, not debited, until allotment. Learn the exact steps and the common reasons bids fail.

    • Grey Market Premium: What It Is and Isn't 9 min

      GMP is an unofficial, unregulated number. It moves with sentiment and is often wrong. Learn to treat it as noise.

  3. 3

    Chapter 3

    After the listing

    • Listing Day: Plan Before the Bell 10 min

      Listing day is volatile. Decide your plan before 10 am, not after the first candle.

    • Case Studies: Good Process, Bad Process 10 min

      Three made-up but realistic IPO stories show how process, not luck, decides long-term results.

A look inside: “How an IPO Works”

In this lesson you will

  • Explain why companies go public
  • Follow the IPO timeline from DRHP to listing
  • Tell fresh issue from offer for sale
From filing to listing
IPO timeline from DRHP to listing1DRHPfiled with SEBI2SEBIobservations3RHPprice band set4Issueopen 3+ days5Allotmentlottery if oversubscribed6ListingT+3 after close

A company files its draft offer document with SEBI, gets observations, fixes a price band and opens the issue for at least three working days. Allotment follows, and shares usually list on the third working day after the issue closes.

IPO
Initial public offering: a company's first sale of shares to the public.
Fresh issue
New shares; the money goes to the company.
Offer for sale (OFS)
Existing shareholders sell; the money goes to them.
Anchor investor
Large institution allotted shares a day before the IPO opens.