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From Private to Public — Be A Part of the Journey
An IPO is when a company sells a portion of its ownership (shares) to the public through the stock market to raise capital for growth, expansion, debt repayment, or other corporate purposes. Its a process through which a private company offers its shares to the public for the first time and becomes a publicly traded company.- It marks a major milestone in the company’s journey — opening doors for investors like you to become shareholders and participate in its growth.
Apply IPO At Your Fingertipes
Top Reasons to Invest in an IPO.
Early Entry into a Growth Story
IPOs often mark the beginning of a company’s next phase of expansion—whether it’s entering new markets, scaling operations, or launching new products.
Early investors may benefit from capital appreciation as the company grows and matures in the public market.
Transparency and Regulation
IPO-bound companies are subject to strict SEBI regulations and must disclose detailed financials and business risks in the Red Herring Prospectus (RHP).
This transparency gives investors access to audited information to make informed decisions.
Diversification Opportunities
IPOs allow investors to diversify their portfolios with stocks from emerging industries, sectors, or startups that were previously unavailable in the public domain.
Types of IPO
The key difference between SME IPO and Mainboard IPO lies in the size of the company, listing requirements, and regulatory norms.
SME IPO
(Small and Medium Enterprises)
SME IPOs are designed for smaller, growing companies that want to raise capital but may not meet the stringent requirements of a full-fledged Mainboard IPO.
Minimum Post-Issue Capital is ₹1 crore to less than ₹25 crore
Application size is greater than ₹1 lakh for 1 lot.
Often Open to only High Net Worth Individuals (HNIs) & Institutional Investors (some limit retail participation)
SME Platforms (NSE Emerge, BSE SME)
Mainboard IPO
Mainboard IPOs are for well-established companies with larger capital and a broad investor base.
Minimum Post-Issue Capital is ₹25 crore or more
Application Ranges between ₹10,000 – ₹15,000
Open to all investor categories including retails
NSE / BSE (Mainboard)
Analyze Multiple Factors to Select IPO
Company & Business Model
Look for a company with a clear and sustainable business model. It should operate in a growing industry with good potential for expansion and profitability.
Financial Performance
Check the company’s revenue and profit trends over the past few years. Consistent growth and healthy cash flow indicate strong fundamentals. Also, review the company’s debt levels to assess financial stability.
Use of IPO Proceeds
Understand how the company plans to use the money raised. Common uses include business expansion, paying off debt, or investing in new projects. The plan should support future growth.
Valuation & Pricing
Compare the IPO’s price band and valuation ratios (like P/E ratio) with similar companies. A fair valuation means the shares aren’t overpriced, offering better potential returns.
Management & Promoters
Experienced and trustworthy leadership is critical. Research the promoters’ background and their commitment to the company. Strong promoter holding usually signals confidence in the business.
Risk Factors
Read the risk section in the IPO documents carefully. Identify major risks like market competition, regulatory issues, or operational challenges, and decide if you are comfortable with them.
Industry & Market Outlook
Consider the industry’s growth prospects and the company’s position within it. Companies with a competitive edge or unique offerings tend to perform better in the long run.
Promoter Holding & Lock-In Period
Check what percentage of shares promoters will hold after the IPO and how long their shares are locked in. This shows the promoters’ confidence and reduces the risk of them selling shares immediately after listing.
Subscription & Demand
Monitor how much demand the IPO is generating from different investor categories. Strong but balanced demand is a good sign, though extreme over subscription might reduce your chances of allotment.
IPOs for All- From Retail to Institutional, Everyone Can Participate
Retail Individual Investors
- Power of the common investorIndividuals (including NRIs and HUFs) investing ₹2 lakhs or less
- Ideal entry point for beginner or small-scale investors
- Can apply via UPI or ASBA (through net banking).
- Eligible for retail quota, which is usually 35% of the issue.
NRI - Can apply in the retail or HNI category, depending on availability of IPO & investment size. Can apply through ASBA (UPI is not yet available for NRIs)
High-Net-Worth Individuals (HNIs)
- The High RollersIndividuals or companies investing more than ₹2 lakhs
- Fall under the Non-Institutional Investor (NII) category.
- No upper investment limit.
Qualified Institutional Buyers (QIBs)
- Institutional TitansBanks, mutual funds, FPIs, and financial institutions registered with SEBI
- Typically allotted 50% of the IPO issue.
- Cannot withdraw bids after submission.
Employees (if applicable)
- Core CrewIf the company has an employee reservation quota, current employees can apply under that category—often at a discounted price.
Anchor Investors
- The Early InvestorsQIBs investing ₹10 crore or more, 1 day before public issue
- Sub-category of QIBs invited to invest before the IPO opens to the public.
Online IPO Application Process: A Step-by-Step Guide
1Login to SIHL MONEYMAKER app or www.sihl.in & go to the IPO section
2Choose the IPO you want to apply for & Enter: Lot size/quantity Bid price (or select cut-off price) UPI ID Submit the application.
3You will receive a UPI mandate request in your UPI app (Google Pay, PhonePe, Paytm, etc.).
4Approve the mandate to block funds.
5Done! You’ll get an SMS/email confirmation from the exchange.
Post-IPO Application Process: What to Expect
UPI Mandate Request
You’ll receive a mandate request in your UPI app.
- Approving this request will block the IPO application amount in your bank account (no immediate debit).
Allotment Process (T+2 Working Days)
Within approximately 2 working days after the IPO closes
- If shares are allotted, they will be credited to your Demat account.
- If not allotted, the blocked amount will be automatically unblocked and made available in your bank account.
Trade with SIHLMONEY MAKER
Get ready to Trade allotted shares on listing day from SIHLMONEY MAKER.
