Question 1

What is an IPO and how does it work in India?

Accepted Answer

An IPO (Initial Public Offering) is the process by which a private company offers its shares to the public for the first time and gets listed on a stock exchange such as NSE or BSE. The company sets a price band, investors apply during a 3-day bidding window through ASBA / UPI, shares are allotted (often by lottery when oversubscribed), and the stock begins trading on the listing date. Investors apply in lots — a fixed minimum number of shares — and the issue can be a fresh issue, an offer for sale (OFS), or both.

Question 2

What is the difference between a Mainboard IPO and an SME IPO?

Accepted Answer

Mainboard IPOs are larger companies that list on the main NSE/BSE platforms with stricter eligibility (minimum post-issue capital, profitability, and disclosure norms) and a minimum retail application of around ₹14,000–15,000. SME IPOs are from small and medium enterprises listing on the NSE Emerge or BSE SME platforms; they have a higher minimum investment (typically ₹1–1.5 lakh per lot), lower liquidity, and higher risk and reward. On this page, SME issues are tagged with an 'SME' label.

Question 3

What do QIB, NII and Retail mean in IPO subscription?

Accepted Answer

These are the three investor categories an IPO is divided into. QIB (Qualified Institutional Buyers) are institutions like mutual funds, banks, insurance companies and FIIs. NII (Non-Institutional Investors), also called HNIs, are individuals and entities applying for more than ₹2 lakh. Retail Individual Investors (RII) apply for up to ₹2 lakh. Each category has a reserved portion of the issue, and the 'subscription times' (e.g. 9.68×) shows how many times the shares offered in that category were bid for.

Question 4

What does it mean when an IPO is oversubscribed?

Accepted Answer

Oversubscription means investors have bid for more shares than are on offer — a subscription of 9.68× means the issue received bids for 9.68 times the available shares. High oversubscription, especially in the QIB category, is often read as strong institutional demand. When an IPO is oversubscribed, retail shares are allotted by a computerised lottery, so applying does not guarantee allotment.

Question 5

How can I check my IPO allotment status?

Accepted Answer

IPO allotment is finalised and published by the issue's registrar (such as Link Intime / MUFG Intime, KFin Technologies, Bigshare or Cameo) — not by the stock exchange. A day or two after the issue closes, you can check allotment status on the registrar's website using your PAN, application number, or DP/Client ID. The relevant registrar link is provided on each IPO's detail page. You can also check via your broker or the BSE/NSE IPO status pages.

Question 6

When does an IPO list after the issue closes?

Accepted Answer

Under the current T+3 listing timeline mandated by SEBI, shares are typically listed on the exchange within 3 working days of the issue closing date. Allotment is usually finalised the next working day after close, refunds/unblocking of ASBA funds happen shortly after, shares are credited to demat accounts, and trading begins on the listing date shown on each IPO page.

Question 7

Where does the IPO data on this page come from?

Accepted Answer

IPO listings, price bands, issue dates, and live subscription figures are sourced from official NSE exchange data and updated through the trading day. Subscription numbers for open issues update during bidding hours. Allotment results are published by the respective registrars. This page is provided for information only and is not investment advice or a recommendation to apply to any IPO.

Sumax Engineering Limited IPO

About this IPO