IPO Glossary - Definitions, Abbreviations, Terminology and Meaning

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IPO Definitions, Abbreviations, Meanings

S No	Term	Definition	Feedback
1	Alternative Investment Funds (AIF)	AIF is a special category of SEBI-registered investment vehicles that collect funds from HNIs and institutions with an aim of high return for the benefit of investors.	0
2	Anchor Investor	A Qualified Institutional Buyer(QIB), applying in an IPO under the Anchor Investor Portion and who has Bid for an amount of atleast ₹10 Crore.	10
3	ASBA IPO Application	IPO Application Supported by Blocked Amount (ASBA) facility allows investors to apply in an IPO through the net-banking facility offered by the bank.	35
4	Basis of Allotment (IPO)	Basis of Allotment is a document containing the basics on which Equity Shares are allotted to successful bidders.	0
5	Bid/Offer Closing Date	Last day on which the IPO issue is closed to the public for bidding.	0
6	Bid/Offer Opening Date	First day on which the IPO issue is open to the public for bidding.	0
7	Book Building	Through book building method of IPO, the company assesses the demand and declares a price range for the bid.	0
8	Brokerage Fee	A brokerage fee is the fee that is charged by a broker for executing a transaction	0
9	Draft Red Herring Prospectus (DRHP)	A DRHP it covers a whole host of things - the financials of the company, the risk factors, and industry dynamics.	0
10	Floor Price	The lowest price of the price band is called floor price.	0
11	IPO (Initial public offering)	An IPO is the first time sale of company shares to the public. Company's go to the public to raise funds. Once IPO shares allocated, they start trading on the exchanges.	0
12	IPO Allottee	IPO allottee is the person to whom an allotment is made in an IPO	1
13	IPO Bid	Bid represents the price at which someone is willing to buy shares in IPO.	0
14	IPO Bid Lot	An IPO Bid-Lot is the number of shares which have to be applied for an investor.	0
15	IPO Cut-off Price	IPO Cut-off price is the share price decided by the company based in the demand of IPO shares.	3
16	IPO Draft Prospectus	A draft prospectus is a first legal document that a company files to SEBI prior to proceeding with an initial public offering (IPO)	0
17	IPO Listing Date	The date on which shares officially quoted on the designated stock exchange for the trade	0
18	IPO Lot Size	Lot Size refers the total number of shares investor can buy in one transaction	1
19	IPO Offer Document	IPO Offer Document contains all the relevant information about the Issuer company and IPO.	0
20	IPO Offer Price	Final price of an IPO on which a company sells its shares to investors.	0
21	IPO Oversubscription	Oversubscription is when the demand for the shares in an IPO is more than the number of shares offered in an IPO.	0
22	IPO Price Band	The price band of a book building IPO is the price range in which investors can bid.	0
23	IPO Revision Form	Revision Form is the form which is used to revise the amount or quantity of Equity shares in IPO process	0
24	IPO Undersubscription	Under Subscription is when the demand for shares in an IPO is less than the number of shares offered in an IPO.	0
25	IPO underwriters	IPO underwriters are group of representatives from investment banks	0
26	IPO Working Day	Except Second and fourth Saturday, Sunday or a public holiday	0
27	Issue Size (IPO)	Issue size in an IPO is given either as the number of shares or in value terms. e.g. 5,00,000 shares or Rs 500 Cr	0
28	Lead Manager	A lead manager is the merchant banker appointed by the issuer company to carry out the entire IPO process.	0
29	Lock-in period	The selling of shares or other holdings in the issuer is restricted during the lock-in period for shareholders, promoters, investors, and company executives.	0
30	Market Maker for SME IPO	Market makers help listed companies in improving the liquidity and better price discovery of the stock. They simply infuse liquidity to thinly traded SME stock.	1
31	Net Offer	Net offer is the net value of shares made available to the public in an IPO after considering the reservation quota in the issue.	1
32	Non-institutional bidders (NII)	An Investor who can bid for the value of more than Rs 200000	1
33	Paid-up equity capital	The paid-up capital is the money received by the company from the shareholders from the sale of its shares.	0
34	Private placement	A private placement is a sale of shares or bonds to pre-selected investors rather than on the open market.	0
35	QIBs / QIB Bidders / Qualified Institutional Buyers	Financial Institutions, Banks, FII's and Mutual Funds who usually apply in very high quantities are called QIB's	0
36	Red Herring Prospectus (RHP)	Red Herring Prospectus is SEBI approved IPO prospectus document.	0
37	Retail Individual Bidder(s) / RIB(s)	An individual bidder who bids in an IPO for the Equity Shares for an amount not more than Rs 200,000 falls under the retail investor's category.	0
38	Return on Net Worth	Return on Net Worth (RoNW) denotes the profit earning capacity of the company on the shareholder's invested amount.	0
39	Self Certified Syndicate Bank(s) or SCSB(s)	SCSB is a bank which offers the facility of applying in IPO through the ASBA process.	0
40	SME Platform	SME platform is a trading platform offered by BSE and NSE for listing and trading of SME companies in India.	0
41	Sub broker	Sub Brokers is a SEBI authorized person who works on behalf of trading member	0
42	Syndicate Members	Syndicate members are commercial or investment banks responsible for underwriting IPO's.	0
43	UPI IPO Application	An investor can apply in an IPO using UPI as a payment option. The Unified Payment Interface (UPI) platform blocks the fund for IPO application after the customer approves the fund block mandate request.	2
44	Venture Capital Fund (VCF)	A venture capital fund is a SEBI-registered entity that collects money from investors who wish to invest in start-ups/early-stage companies in return for a certain percentage of equity.	0
45	Weighted Average	The weighted average is the average of numbers with assigned weights.	0

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