What is IPO In Detail and how to buy? IPO Full Form 2023

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What Is IPO In Hindi: People Are Not Aware Of Many Things Related To The Stock Market, One Of Those Terms Is IPO. To Get Success In The Stock Market, It Is Necessary To Have Knowledge About IPO. That’s Why We Have Told You About IPO In Hindi In This Article.

Through This Article, We Have Given You Information About What Is IPO, Types Of IPO, How To Buy IPO, How To Invest In IPO, Advantages Of IPO And Disadvantages Of IPO.

If You Also Want To Invest In The Stock Market, Then This Article Is Very Important For You, So Read This Article Till The End. So Let’s Start This Article Without Any Delay – IPO Investment In Hindi.

IPO Kya Hai In Hindi (What is IPO in Hindi)

The Full Form Of IPO Is Initial Public Offering. Whenever A Company Lists Its Common Stock In The Stock Market And Makes It Public For The First Time, It Is Called An IPO. When Companies Are Listed On The Stock Market, Any Investor Can Buy And Sell Their Shares.

Actually, Companies Need Funds To Increase Their Growth, Then They Offer Some Percent Of Their Shares To The General Public. The Company Invests The Funds It Raises From The Shares In The Development Of The Company And The Investor Gets Some Percentage Stake In The Company.

Simply Put, When A Company Issues Its Common Shares To The General Public For The First Time, It Is Called An IPO. Any Company Is Listed In The Stock Market Through IPO.

Full name of IPO (IPO Full form in Hindi)

The Full Form Of IPO Is Initial Public Offering, Which In Hindi Is Called ‘First Public Offer’.

By Now You Must Have Got A Little Idea That What Is An IPO, Now It Is Also Important To Know Why A Company Brings An IPO.

Reason for bringing IPO

As We Told You Above That Companies Issue IPO To Raise Funds. IPO Is Issued By Both Small And Big Companies.

The Main Objective Of IPO Is To Raise Funds For The Necessary Operations And Progress Of The Company. Although Companies Can Also Take Loans From Banks To Raise Funds, But In Taking Loans, The Company Has To Return The Loan Amount Along With Interest To The Bank Within A Fixed Time Interval.

But Companies Do Not Have To Return Anyone’s Money By Issuing Shares. After Getting Listed On The Stock Market, The Company Issues Some Percentage Of Its Shares To The General Public, And Investors Buy The Company’s Shares, Giving The Investor Some Percentage Of The Company’s Stake And The Company Receiving Money.

Both The Company And The Investor Benefit From An IPO. On One Hand The Company Collects Funds For Itself And On The Other Hand The Investor Becomes The Owner Of Some Percentage Of The Company. A Company Can Issue An IPO More Than Once.

Following Are Some Of The Major Reasons For Issuing An IPO –

  • A Small Company Issues An IPO For Its Growth.
  • Medium And Large Companies Can Take Out IPO For Their Expansion.
  • A Company Issues An IPO To Repay Debt.
  • Companies Also Take Out IPOs To Launch New Products.

Types of IPO

There Are Mainly Two Types Of IPOs –

  • Fixed Price Offer
  • Book Building Offer

#1 – Fixed Price Offers (Fixed Price Offers)

As The Name Suggests, Under Fixed Price, The Company Going Public Sets A Fixed Price At Which Its Shares Are Offered To The Investors. Investors Get To Know The Share Price Of The Company Even Before It Comes On The Stock Market. Because In Fixed Price IPO, The Company Along With The Investment Bank Decides The Share Price. Investors Participating In This Type Of IPO Have To Pay The Full Price Of The Shares At The Time Of Application.

#2 – Book Building Offering (Book Building Offer)

In Book Building IPO, The Companies Along With The Investment Bank Decide The Price Band. Generally Companies Give Up To 20% Discount To Investors Under Book Building IPO. IPO Is Issued When The Price Is Fixed.

Investors Bid On The Shares Before The Final Price Is Decided. Investors Have To Specify How Much Share They Want To Buy And How Much They Are Ready To Pay.

 There Is No Fixed Price Per Share In A Book Building IPO. The Lowest Share Price Is Called The Floor Price And The Highest Share Price Is Called The Cap Price.

How to earn money from IPO

To Earn Money From IPO You Have To Invest In IPO. Investing In IPO Means That Your Fortune Is Tied To The Company, The Company In Which You Have Invested In IPO, If It Grows, You Will Also Benefit, But If The Company Suffers Loss, Your Investment Will Be Lost. Money Can Also Sink. Huh.

Application to apply in IPO

Here Is A List Of The Best IPO Apps To Apply For IPO –

Name Of The App Applying For The IPOIPO App Download Link
Upstox App (Upstox Trading App)Upstox App Download
Groww App (Grow Investment App)Groww App Download
Angel One By Angel BrokingAngel Broking App Download
Zerodha Trading App (Zerodha Kit Trading App)Zerodha Download

We Have Given You More Information About Investing In IPO In This Article –

How to invest in IPO (How to Invest in IPO in Hindi)

When Any Company Issues An IPO, It Gives Investors 3 To 10 Days To Invest In The IPO. In This Fixed Time Interval The Investor Can Buy The IPO Of The Company. Some Company Opens Its IPO For 3 Days Only While Some Opens Its IPO For Investors For More Than 3 Days.

To Invest In IPO, You Can Invest By Visiting The Official Website Of The IPO Issuing Company Or You Can Also Buy IPO Through A Registered Stock Broker .

If The Company Has Issued A Fixed Price IPO, Then You Will Have To Buy The IPO At The Fixed Price Only. And If IPO Is Book Building Then You Have To Bid In IPO. If You Have Invested In IPO Then Share Allotment Happens Only After The IPO Is Closed.

Your Broker Should Be The Best To Invest In IPO, Initially You Invest In IPO With The Broker Only. Compare The Company You Want To Invest In IPO With 2-3 Other Companies, Invest In IPO Only After Watching The Progress Of The Company For A Few Days.

Upstox App And Grow App Are Very Good For Investing In IPO, You Can Invest In IPO Through These Applications.

How to buy IPO?

To Buy IPO Follow The Following Steps In A Sequential Manner –

  • First Of All Open Your Demat Account With Any Discount Brokerage . You Can Open Your Demat Account With Upstox And Groww App.
  • After This Go To The IPO Section Of The Application.
  • Here You Will Get To See The List Of IPO Of The Company.
  • To Buy IPO, You Have To Pay Through UPI. After Which The Company Allots You IPO.
  • When The IPO Is Allotted, You Become A Shareholder Of The Company In Proportion To The Percentage Of Shares You Hold.
  • If For Some Reason You Are Not Allotted The IPO, Then Your Money Is Transferred To Your Bank Account.

IPO allotment process

When The Opening Of The IPO Is Closed, The Companies Do The IPO Allotment, In This Process The Company Allots The IPO To All The Investors And After The IPO Allotment The Shares Of The Company Are Listed In The Stock Market.

When The Company’s Shares Are Listed On The Stock Market, They Can Be Bought And Sold In The Secondary Market, They Cannot Be Sold Until The Shares Are Listed On The Stock Market. But When The Shares Are Listed In The Market, The Two Investors Can Buy And Sell The Shares As Per The Timings Of The Stock Market.

This Question May Also Be Coming In The Mind Of Many People That What Is The Secondary Market, So For Your Information, Let Us Tell You That You Can Invest In The Stock Market In Two Ways. Primary Market And Secondary Market.

In Primary Market You Can Invest Through IPO And In Secondary Market You Can Invest In Shares Listed In Stock Market.

Know these things before investing in IPO

  • Investing In IPO Is Very Risky, Your Money Can Sink In It And You Can Also Become A Millionaire Overnight.
  • To Invest In IPO, You Should Also Have A Little Knowledge Of It. You Can Also Take The Help Of Your Broker To Invest In IPO.
  • You Must Have A PAN Card And A Demat Account To Invest In IPOs.
  • Investing In IPO Requires A Demat Account, If You Have Less Capital Then You Can Open Your Demat Account With Discount Brokerage.
  • Don’t Be Greedy, Avoid Investing All Your Capital In IPO.

What is SEBI (What is SEBI in Hindi)

SEBI (Securities And Exchange Board Of India) Is A Government Regulatory Body For Companies Bringing IPO, Which Makes Companies Follow The Rules. Companies Have To Give All Kinds Of Information To SEBI. Even After Bringing The IPO, SEBI Checks The Company Whether The Information Given By Them Is Correct Or Not.

Advantages of IPO

The Benefits Of IPO Are As Follows –

  • After Bringing IPO, Companies Collect Enough Capital For Their Growth.
  • SEBI Keeps An Eye On The IPO, So There Is No Risk Of Fraud With The Investor.
  • You Can Earn More Money With Less Investment.
  • IPO Can Be A Good Option For A Beginner Investor.

Disadvantages of IPO

IPO Also Has Some Disadvantages Like –

  • IPO Is Risky.
  • The Company Has To Work Under The Rules Of SEBI.
  • The IPO Process Is Costly For The Company.

IPO FAQs

Q. What Is IPO?

When A Company Issues Its Shares To The General Public For The First Time, It Is Called An IPO.

Q. What Is The Full Form Of IPO?

The Full Form Of IPO Is Initial Public Offering. This Is Called The First Public Offer In Hindi.

Q. Is It Right To Invest In IPO?

Although IPO Is Considered A Risky Investment Because People Do Not Have Any Information Related To The Progress Of The Company’s Stock. However, For Those Who Are Beginner Investors, Investing In IPO Can Be A Good Option. Because It Is Necessary To Know About IPO To Make A Future In The Stock Market. Beginner Investors Can Invest In IPO With The Help Of Their Broker.

Q. What Is Required To Invest In IPO?

To Invest In The IPO, The Investor Must Have A PAN Card Issued By The Income Tax Department And Must Also Have A Demat Account. Only Then An Investor Can Invest In IPO.

Q. Who Can Invest In IPO?

Any Adult Or Minor Holding A PAN Card Issued By The Income Tax Department Can Invest In An IPO.

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