MEGA Logo

Introducing

Unlocking Investment Opportunities in scaling businesses

Basics of IPO ( Initial Public Offerings )

When investing in an Initial Public Offering (IPO), it's essential for investors to grasp several basic terms .

Issue Price

The issue price refers to the price at which the company offers its shares to the public for the first time. This price is determined through a meticulous process that takes into account various factors such as market conditions, company valuation, and investor demand. Understanding the issue price is fundamental as it directly influences the initial valuation of your investment.

Issue Date

The issue date signifies the date on which the company's shares become available for public purchase. This marks the commencement of trading on the stock exchange. Being aware of the issue date allows investors to plan their investment strategies effectively, ensuring timely participation in the IPO.

Grey Market Premium

The grey market premium reflects the difference between the anticipated market price of the IPO shares and the issue price. It is essentially the premium that investors are willing to pay for acquiring shares before they are officially listed on the stock exchange. Monitoring the grey market premium provides valuable insights into market sentiment and demand for the IPO.

Allotment

Allotment refers to the process through which shares are allocated to investors who have subscribed to the IPO. The allotment process is governed by specific criteria outlined by the company and regulatory authorities. Understanding the allotment process helps investors manage their expectations regarding the quantity of shares they may receive.

Retail & HNI Quota

In most IPOs, a certain portion of shares is reserved for retail investors and high net-worth individuals (HNIs). The retail quota is typically earmarked for individual investors, while the HNI quota caters to institutional investors and wealthy individuals. Assessing the allocation of shares across these quotas enables investors to gauge the level of competition and plan their investment accordingly.

Schedule An Appointment

Mark your calendar! Secure your spot for a productive meeting - schedule your appointment today