Let us understand the share allotment process in an IPO (Initial Public Offering) both in Book Building Issue and Fixed Price Issue. What are the quotas of each category of investors : 1. Retail Individual Investors (RII) 2. Non-Institutional Investors (NII) 3. Qualified Institutional Buyers (QIB) 4. Reserved Category
In IRCTC IPO, most investors were not allotted shares. Let us understand why.
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In this video, I have explained:
Process of IPO allotment process in primary market What is Initial Public Offering (IPO) in Share Market? Categories of investors in indian stock market? Investors and retail investors? What is Fixed Price issue in Share Market? What is book building issue in Stock Market? How can we invest in Initial Public Offering (IPO) in Stock Market? Important conditions for What is the process of Initial Public Offering (IPO) allotment? Who is anchor investor?
The allocation of shares to investor categories is reserved in every IPO. These categories are - qualified institutional buyers, non-institutional investors and retail investors. Most of the times, the quota of shares which is reserved for the retail investors get over-subscribed. Over-subscription happens when the number of applicants exceed the number of shares which are being offered. So, when an issue is over-subscribed, the applicants get fewer shares than what they have applied for.
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