subject: How To Invest In Ipo In India? [print this page] Any individual having a demat account can make investment in IPOs in India. As per SEBI guidelines a retail investor can apply or bid for shares for a value of not more than Rs. 1, 00,000. In book build offer 35% of the issued shares are reserved for retail investors.
An investor can obtain the application form to participate in an IPO from any collection centers, brokers or stock exchanges Public issues is open for at least 3 working days and not more than 10 working days.
In case of fixed price issue, the investor is intimated about the allotment or refund order within 30 days of the closure of the issue, in case of book built issue this process takes 15 working days.
An investor in IPO is entitled to receive a Confirmatory Allotment Note (CAN) in case he has been allotted shares within 15 days from the closure of a book built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 15 days of the closure of the issue. The listing on the stock exchanges is done within 7 days from the finalization of the issue. In case of fixed price issue, listing would be around 37 days after the closure of the issue.
In case, applicant is not allotted any shares in the IPO or he gets less shares than originally applied he is entitled to get refund. Some years ago SEBI has initiated Electronic Clearing Service (ECS) facility to speed up the refund process. As of now, ECS facility is available in 15 centres that are managed by the Reserve Bank of India. Investors residing in other centers will continue to get refunds through registered or ordinary post. Investor must note that the refund orders will be issued on bank accounts which is mentioned in your demat
