What is cut-off price in IPO?

The cut-off price is the final price at which shares are issued to retail investors. Bidding at cut-off ensures your application is considered valid across the entire price band.

How to check IPO allotment status?

IPO allotment can be checked online on the registrar's official portal or on IPO-Trend using your PAN number or DP ID once the basis of allotment is finalized.

IPO FAQs: Most Frequently Asked Questions About Initial Publ

Investing in Initial Public Offerings (IPOs) is one of the most popular avenues for retail investors in India to participate in a company's early growth. However, beginners often face confusion regarding bidding rules, cut-off prices, allotment odds, and refund cycles.

1. What is Cut-off Price in an IPO?

The cut-off price is the final issue price decided by the company and its merchant bankers within the price band based on investor demand. Retail individual investors (RIIs) applying for shares are strongly advised to select the Cut-Off Price option when placing their bid through UPI or ASBA. This guarantees that your bid remains valid regardless of whether the final issue price is fixed at the lower or upper end of the price band.

2. Who is Eligible to Apply for an IPO?

Any Indian resident or NRI who holds an active PAN card, a valid Demat account, and a UPI-enabled bank account supported by ASBA (Applications Supported by Blocked Amount) can bid for an IPO. Applications are categorized into Retail Individual Investors (up to ₹2 Lakh), High Net-Worth Individuals (HNI/NII: ₹2 Lakh to ₹10 Lakh+), and Qualified Institutional Buyers (QIBs).

Subscription Demand Tracking

Retail and QIB bidding data provide valuable insights into market appetite. Investors can monitor category-wise bidding figures and quota progress via live IPO subscription status.

3. How to Track Live Subscription Demand?

Stock exchanges (NSE and BSE) publish live bidding data from 10:00 AM to 5:00 PM on trading days when the IPO window is open. Monitoring how institutional buyers (QIBs) and non-institutional investors (NIIs) bid on Day 2 and Day 3 is critical before finalizing your retail application. You can inspect day-wise IPO subscription updates to see cumulative oversubscription multipliers.

4. How Do I Check My IPO Allotment Status?

Once the bidding window closes, the registrar (such as Link Intime, KFin Technologies, or Bigshare Services) executes the basis of allotment. When the basis is finalized, investors can verify allotment using their PAN number, Application number, or DP Client ID. For direct registrar links and fast server verification, access the online IPO allotment status checker.

5. What Role Does Grey Market Premium (GMP) Play?

Before an IPO lists on stock exchanges, unofficial trading takes place in the IPO grey market. The Grey Market Premium (GMP) provides an early market sentiment signal indicating whether the stock might list at a premium or discount over the issue price. Check real-time daily premium updates, Kostak rates, and Subject to Sauda calculations on our live IPO GMP tracker.

IPO FAQs: Most Frequently Asked Questions About Initial Public Offerings