IPO Related FAQ
Question 1: What is IPO?
Answer: An IPO, or Initial Public Offering, is when a company sells its shares to the public for the first time. It’s like a company’s way of opening up to new investors. By doing this, the company can raise money to help it grow or fund new projects. If you buy shares in the IPO, you become a part-owner of the company.
Question 2: Can an investor apply in an IPO through multiple applications with same name? OR Can I apply for same IPO on multiple platforms?
Answer: You can’t apply for an IPO multiple times using the same Demat account or PAN number. If you try to do this, all your applications will be rejected. If you want to apply more than once, you can do so through family members. Each family member must have their own Demat account and PAN number.
Question 3: What does blocked amount mean in UPI?
Answer: The money you need to bid is put on hold in your bank account. It won’t be taken out, just kept on hold. If you don’t get shares from the IPO, the money will be unblocked and available again within a few days.
Question: What is the HNI category in an IPO?
Answer: People who bid for more than Rs 2 lakhs worth of shares in an IPO are known as High Net-Worth Individuals (HNIs).