IPO Glossary: Terms, Definitions & Meanings

What is an IPO Glossary?

An IPO Glossary is a collection of commonly used terms, abbreviations and financial concepts related to Initial Public Offerings (IPOs). It helps investors understand the terminology used throughout the IPO process, from IPO application and bidding to subscription, allotment, GMP and stock market listing.

Whether you are applying for your first IPO or looking to understand advanced IPO terminology, this glossary explains each term in simple language with practical examples.

Basic IPO Terms

Term	Simple Definition	Example
IPO – Initial Public Offering	An IPO is when a company offers its shares to the public for the first time.	ABC Ltd. launches an IPO at ₹100 per share, allowing investors to apply for its shares.
Public Issue	A public issue is when a company offers its shares or securities to the general public to raise money.	ABC Ltd. offers 1 crore shares to the public at ₹100 each to raise funds.
Public Offering	A public offering is when a company makes its shares available for investment by the public.	A company offers its shares through an IPO, allowing anyone eligible to apply.
New IPO	A new IPO is an IPO that has recently been announced or launched by a company.	ABC Ltd. announces a new IPO with a price band of ₹95–₹100 per share.
Upcoming IPO	An upcoming IPO is an IPO that is announced but has not opened for investors yet.	ABC Ltd.'s IPO is expected to open next month, so it is an upcoming IPO.
Current IPO	A current IPO is an IPO that is open for investors to apply for at that time.	If ABC Ltd.'s IPO is open from August 20 to August 22, it is a current IPO during those dates.
Open IPO	An open IPO is an IPO where investors can currently submit their applications.	ABC Ltd.'s IPO is open from August 20 to August 22, so investors can apply during this period.
Closed IPO	A closed IPO is an IPO whose application period has ended and investors can no longer apply.	If ABC Ltd.'s IPO closed on August 22, investors cannot submit new applications after that date.
Listed IPO	A listed IPO is an IPO whose shares have completed the IPO process and are now trading on a stock exchange.	ABC Ltd. lists its shares on NSE at ₹120 after offering them at ₹100 in its IPO.
IPO Market	The IPO market is where companies raise money from the public by offering shares and investors apply for those shares.	Investors track upcoming IPOs in the Indian IPO market to find new investment opportunities.
IPO Investment	IPO investment means putting money into a company's shares through its IPO.	Ravi invests ₹15,000 in an IPO by applying for 150 shares at ₹100 each.
IPO Application	An IPO application is a request made by an investor to buy shares offered in an IPO.	Neha applies for 100 shares of an IPO at ₹200 per share through her broker.
IPO Bidding	IPO bidding is the process of choosing how many shares to apply for and, where applicable, the price within the IPO price band.	An investor bids for 100 shares at ₹150 each when the IPO price band is ₹140–₹150.
IPO Offer	An IPO offer is the proposal by a company to sell its shares to the public.	ABC Ltd. makes an IPO offer of 2 crore shares at ₹100 per share.
IPO Issue	An IPO issue is the complete offering of shares made by a company to raise money from public investors.	ABC Ltd. announces an IPO issue of ₹500 crore to raise funds for expansion.
IPO Issue Size	IPO issue size is the total value of shares offered to investors through an IPO.	If a company offers 5 crore shares at ₹100 each, its IPO issue size is ₹500 crore.
IPO Offer Size	IPO offer size is the total amount of money a company plans to raise through the shares offered in its IPO.	If the company offers shares worth ₹1,000 crore, its IPO offer size is ₹1,000 crore.
IPO Share	An IPO share is a share of a company that investors can buy through its IPO.	If an IPO price is ₹80 per share, an investor applying for 100 shares needs ₹8,000.
Equity Share	An equity share represents a small ownership part of a company.	If you own 10 shares of an Indian company, you own a small part of that company.
Ordinary Share	An ordinary share is a regular company share that usually gives the shareholder voting rights and a possible dividend.	If Priya owns ordinary shares of an NSE-listed company, she may have voting rights as a shareholder.
Public Shareholders	Public shareholders are investors who own shares of a company that are available for public trading.	After an IPO, thousands of investors who receive the shares become public shareholders of the company.
Issuer Company	An issuer company is the company that offers shares or other securities to investors to raise money.	ABC Ltd. is the issuer company because it is offering its shares through an IPO.
IPO Company	An IPO company is a company that is launching or has recently launched an IPO.	ABC Ltd. becomes an IPO company when it offers its shares to the public for the first time.
Listed Company	A listed company is a company whose shares are officially traded on a stock exchange such as NSE or BSE.	Reliance Industries is a listed company whose shares trade on NSE and BSE.
Unlisted Company	An unlisted company is a company whose shares are not traded on a stock exchange like NSE or BSE.	If ABC Ltd. has not listed its shares on NSE or BSE, it is an unlisted company.

IPO Types

Term	Simple Definition	Example
Mainboard IPO	A Mainboard IPO is an IPO of a company that meets the requirements to list on the main board of NSE or BSE.	A large company launches an IPO and lists its shares on the NSE Mainboard.
Mainline IPO	Mainline IPO is another common name for a Mainboard IPO.	A large Indian company raising ₹2,000 crore through an IPO can be called a Mainline IPO.
SME IPO	An SME IPO is an IPO launched by a small or medium-sized company on an SME stock exchange platform.	ABC Small Ltd. raises ₹50 crore through an SME IPO to expand its business.
NSE	NSE means National Stock Exchange of India, one of India's major stock exchanges where shares and other securities are traded.	If ABC Ltd. is listed on NSE, investors can buy and sell its shares through the NSE.
BSE	BSE means BSE Limited (formerly Bombay Stock Exchange), one of India's major stock exchanges where shares and other securities are traded.	If ABC Ltd. is listed on BSE, investors can buy and sell its shares through the BSE.
Fresh IPO	A fresh IPO means the company issues new shares to raise new money for its business.	ABC Ltd. issues 50 lakh new shares at ₹100 each and raises ₹50 crore for expansion.
FPO – Follow-on Public Offer	An FPO is when an already listed company offers additional shares to the public to raise more money.	An NSE-listed company launches an FPO to raise ₹500 crore for a new project.
OFS – Offer for Sale	OFS is when existing shareholders sell their shares to the public through the stock exchange.	A promoter sells shares worth ₹200 crore through an OFS, and the money goes to the selling shareholder.
Rights Issue	A rights issue allows existing shareholders to buy additional shares, usually at a set price.	A company offers 1 new share at ₹80 for every 5 shares held by an investor.
Bonus Issue	A bonus issue gives existing shareholders additional free shares based on the shares they already own.	If a company announces a 1:1 bonus, an investor holding 100 shares gets 100 additional shares.
Preferential Issue	A preferential issue is when a company issues new shares to selected investors instead of offering them to everyone.	A company issues 10 lakh new shares to selected investors at ₹150 per share.
Book Built Issue	A book built issue is an issue where the final share price is decided based on investor bids within a price range.	An IPO has a price band of ₹95–₹100, and strong investor bids help set the final price at ₹100.
Fixed Price Issue	A fixed price issue is an IPO where the company announces one fixed price for its shares before investors apply.	ABC Ltd. offers its IPO at a fixed price of ₹120 per share.
Primary Market	The primary market is where new shares or securities are sold to investors for the first time to raise money.	When you buy shares directly in an IPO, you are investing in the primary market.
Secondary Market	The secondary market is where investors buy and sell already-issued shares with each other through stock exchanges.	After an IPO listing, Ravi buys ABC Ltd. shares from another investor on NSE for ₹130.

IPO Price & Issue Terms

Term	Simple Definition	Example
IPO Price	IPO price is the price at which a company offers its shares to investors in an IPO.	If ABC Ltd. offers its IPO shares at ₹120 each, ₹120 is the IPO price.
Issue Price	Issue price is the price investors pay for each share offered by a company.	If an IPO has an issue price of ₹150, an investor pays ₹150 for each allotted share.
Offer Price	Offer price is the price at which shares are offered to investors in a public issue.	ABC Ltd. offers its shares at ₹200 per share, so ₹200 is the offer price.
Issue Price Band	Issue Price Band is the range between the lowest and highest price at which investors can bid for an IPO share.	If the Issue Price Band is ₹95–₹100, investors can bid at a price between ₹95 and ₹100.
Lower Price Band	Lower price band is the lowest price at which investors can bid for an IPO share.	If the price band is ₹90–₹100, ₹90 is the lower price band.
Upper Price Band	Upper price band is the highest price at which investors can bid for an IPO share.	If the price band is ₹90–₹100, ₹100 is the upper price band.
Floor Price	Floor price is the lowest price at which investors can bid for shares in an IPO.	If an IPO has a floor price of ₹80, investors cannot bid below ₹80 per share.
Cap Price	Cap price is the highest price at which investors can bid for shares in an IPO.	If an IPO has a cap price of ₹100, investors cannot bid above ₹100 per share.
Cut-off Price	Cut-off price is the final IPO price decided after considering all investor bids.	If an IPO has a price band of ₹90–₹100 and the final price is ₹100, ₹100 is the cut-off price.
Cut-off Bid	A cut-off bid means agreeing to buy IPO shares at whatever final price is decided within the price band.	Priya selects “cut-off” while applying for an IPO with a ₹95–₹100 price band, so her bid remains valid at the final price.
Final Issue Price	Final issue price is the actual price at which IPO shares are finally offered to investors.	An IPO has a price band of ₹100–₹110 and the final issue price is set at ₹108.
Final Offer Price	Final offer price is the final price decided for shares offered to investors after the IPO bidding process.	If investor bids lead to a final price of ₹250, ₹250 is the final offer price.
IPO Valuation	IPO valuation is the estimated value of a company based on the price of its shares during the IPO.	If an IPO price implies that ABC Ltd. is worth ₹5,000 crore, its IPO valuation is ₹5,000 crore.
Pre-IPO Valuation	Pre-IPO valuation is the estimated value of a company before it becomes publicly listed.	Before its IPO, ABC Ltd. is valued at ₹4,000 crore by investors and the company.
Post-IPO Valuation	Post-IPO valuation is the estimated value of a company after the IPO based on its IPO share price.	If ABC Ltd. is valued at ₹5,000 crore after its IPO, ₹5,000 crore is its post-IPO valuation.
Market Capitalisation(Market Cap)	Market capitalisation is the total market value of all a company's outstanding shares.	If a company has 10 crore shares priced at ₹200 each, its market capitalisation is ₹2,000 crore.
Post-Issue Market Cap	Post-issue market cap is the company's total share value after new shares from an issue are included.	If a company has 10 crore shares and issues 2 crore new shares at ₹100, its post-issue market cap at that price is ₹1,200 crore.
Face Value	Face value is the original value assigned to each share by the company.	If a company's share has a face value of ₹10 but its IPO price is ₹150, ₹10 is the face value.
Premium	Premium is the extra amount charged above the face value of a share.	If a share has a face value of ₹10 and is issued at ₹120, the premium is ₹110.
Share Premium	Share premium is the amount by which the issue price of a share is higher than its face value.	If the face value is ₹10 and the issue price is ₹150, the share premium is ₹140.
IPO Discount	IPO discount is a reduction in the IPO price offered to certain eligible investors.	If an IPO price is ₹100 and eligible investors get a ₹5 discount, they pay ₹95 per share.
Retail Discount	Retail discount is a special reduction in the IPO price offered to eligible retail investors.	If an IPO offers a ₹5 retail discount on a ₹100 share, eligible retail investors pay ₹95.
Employee Discount	Employee discount is a special reduction in the IPO price offered to eligible employees of the company.	If the IPO price is ₹500 and employees get a ₹20 discount, eligible employees pay ₹480 per share.
Share Price	Share price is the amount an investor pays to buy one share of a company.	If ABC Ltd.'s shares are trading at ₹250 on NSE, its share price is ₹250.
Offer Price Per Share	Offer price per share is the amount charged for each share offered in an IPO or public issue.	If a company offers 1 crore shares at ₹100 each, the offer price per share is ₹100.
Price Discovery	Price discovery is the process of finding a fair market price based on investor demand and supply.	In a book-built IPO, investors bid at different prices and their bids help determine the final IPO price.

IPO Issue Structure

Term	Simple Definition	Example
Fresh Issue	A fresh issue means a company creates and sells new shares to raise money for its business.	ABC Ltd. issues 1 crore new shares at ₹100 each and raises ₹100 crore through a fresh issue.
Fresh Equity Shares	Fresh equity shares are new shares created and issued by a company to raise money.	ABC Ltd. creates 50 lakh new equity shares and offers them to investors at ₹80 each.
Existing Shareholders	Existing shareholders are people or organisations that already own shares in a company.	Before its IPO, ABC Ltd.'s founders and early investors are existing shareholders.
Promoter Selling	Promoter selling means the company's promoters sell some of the shares they already own.	ABC Ltd.'s promoter sells shares worth ₹100 crore through an OFS.
Promoter Offer for Sale	Promoter Offer for Sale means promoters sell their existing shares to public investors through an OFS.	ABC Ltd.'s promoter offers 20 lakh shares for sale as part of the IPO.
Net Issue	Net issue is the total issue size left after removing shares reserved for specific categories, if applicable.	If an issue has 1 crore shares and 10 lakh are reserved for employees, the net issue may be 90 lakh shares.
Gross Issue	Gross issue means the total number or value of shares included in an issue before applicable deductions or reservations.	A company announces a gross issue of ₹500 crore, including shares reserved for different investor categories.
Total Issue Size	Total issue size is the total value or number of shares offered through a public issue.	ABC Ltd. offers 2 crore shares at ₹100 each, making the total issue size ₹200 crore.
Public Issue Size	Public issue size is the total value of shares offered to public investors in an issue.	A company offers shares worth ₹1,000 crore to public investors, so its public issue size is ₹1,000 crore.
Shares Offered	The number of shares offered is the total number of shares made available to investors in an issue.	ABC Ltd. offers 5 crore shares to investors through its IPO.
Equity Shares Offered	Equity shares offered are the ordinary ownership shares made available to investors through an issue.	ABC Ltd. offers 2 crore equity shares at ₹150 each in its IPO.
Net Offer	Net offer is the portion of an issue available to the public after excluding shares reserved for certain categories.	If 1 crore shares are offered and 5 lakh are reserved for employees, the remaining 95 lakh shares form the net offer.
Net Offer to Public	Net offer to public means the shares actually available for subscription by public investors after applicable reservations.	If 1 crore shares are offered and 10 lakh are reserved for employees, 90 lakh shares may be available as the net offer to public.
Capital Structure	Capital structure shows how a company is funded through equity, debt and other sources of money.	ABC Ltd. has ₹200 crore in equity and ₹300 crore in loans, showing part of its capital structure.
Post-Issue Capital	Post-issue capital is the company's share capital after new shares from an issue have been added.	ABC Ltd. has 5 crore shares before its IPO and issues 1 crore new shares, giving it 6 crore shares after the issue.
Pre-Issue Share Capital	Pre-issue share capital is the company's share capital before it issues new shares to investors.	ABC Ltd. has 5 crore shares before its IPO, so 5 crore shares are its pre-issue share capital.
Post-Issue Share Capital	Post-issue share capital is the total share capital after the public issue is completed.	If a company has 10 crore shares before an IPO and issues 2 crore new shares, it has 12 crore shares after the issue.
Dilution	Dilution means existing shareholders own a smaller percentage of the company after new shares are issued.	If a promoter owns 60% before an IPO and 50% after new shares are issued, the promoter's ownership has been diluted.
Equity Dilution	Equity dilution means the ownership percentage of existing shareholders falls because new equity shares are issued.	A founder owns 70% before an IPO but 60% after new shares are issued, causing equity dilution.
Promoter Dilution	Promoter dilution means the promoters' percentage ownership in a company decreases after new shares are issued.	A promoter's stake falls from 65% to 55% after a fresh issue, resulting in promoter dilution.
Stake Dilution	Stake dilution means an investor's or shareholder's percentage ownership in a company becomes smaller.	An investor owns 20% before a fresh issue but 15% after new shares are issued, so their stake is diluted.

IPO Documents

Term	Simple Definition	Example
DRHP – Draft Red Herring Prospectus	DRHP is a draft document a company files with SEBI that gives important details about its business and proposed IPO.	ABC Ltd. files its DRHP with SEBI, showing its business, financial results, risks and how it plans to use the IPO money.
RHP – Red Herring Prospectus	RHP is the IPO document released before the issue that gives investors detailed information but may not contain the final issue price.	ABC Ltd. releases its RHP before the IPO opens, helping investors understand the company and the risks involved.
Draft Prospectus	A draft prospectus is an early version of the document containing important information about a company planning to raise money from investors.	ABC Ltd. prepares a draft prospectus with details about its business, finances and proposed IPO.
Red Herring Prospectus	A Red Herring Prospectus is an IPO document that provides detailed company and issue information before the final price is decided.	Investors read ABC Ltd.'s Red Herring Prospectus to check its financial performance and IPO risks.
Final Prospectus	A final prospectus is the completed IPO document containing the final details of the public issue.	After deciding the final IPO price, ABC Ltd. files its final prospectus with the required authorities.
Prospectus	A prospectus is a detailed document that tells investors about a company, its financials, risks and the securities it is offering.	Before applying for an IPO, an investor can read the company's prospectus to understand its business and risks.
Offer Document	An offer document contains important information about a public issue to help investors make an informed decision.	ABC Ltd.'s offer document explains its business, financials, risks and details of its IPO.
Abridged Prospectus	An abridged prospectus is a shorter version of the full prospectus containing the main information about an issue.	Instead of reading the entire prospectus, an investor can first read the abridged prospectus for key IPO details.
Anchor Investor List	An anchor investor list shows the institutional investors who receive shares before an IPO opens to other investors.	ABC Ltd. announces that several mutual funds and other institutions are part of its anchor investor list.
Anchor Allocation	Anchor allocation is the shares reserved for selected institutional investors before the IPO opens for other investors.	ABC Ltd. allocates 50 lakh shares to eligible anchor investors before its IPO opens.
Basis of Allotment	Basis of allotment explains how IPO shares are distributed among investors when there are more applications than available shares.	If an IPO receives applications for 10 times the available shares, the basis of allotment decides which applicants receive shares.
Basis of Allocation	Basis of allocation means the method used to decide how many IPO shares each eligible investor receives.	If a retail IPO is heavily subscribed, shares may be allotted according to the approved basis of allocation.
SEBI Observation	SEBI observation means comments or queries given by SEBI on a company's IPO documents during the review process.	SEBI asks ABC Ltd. for clarification about a risk mentioned in its DRHP before the IPO moves ahead.
SEBI Approval	SEBI approval means SEBI has completed its required review and allowed the company to proceed subject to applicable requirements.	ABC Ltd. receives SEBI approval to proceed with its proposed IPO after completing the required process.
IPO Approval	IPO approval means the required authorities have cleared the company to proceed with its IPO.	ABC Ltd. receives the necessary approvals and can move forward with its IPO plans.
Regulatory Approval	Regulatory approval means permission or clearance from the relevant authority before a company can carry out a regulated activity.	A company planning an IPO needs to complete the required regulatory approvals before launching the issue.
Registrar of Companies	The Registrar of Companies, or RoC, is the government authority that maintains official records of registered companies in India.	When a company files required corporate documents, the filing is made with the RoC.
RoC Filing	RoC filing means submitting required company documents and information to the Registrar of Companies.	ABC Ltd. submits its required corporate documents to the RoC as part of its legal compliance.
SEBI Filing	SEBI filing means submitting required documents and information to SEBI for regulatory review.	ABC Ltd. makes a SEBI filing by submitting its DRHP before its proposed IPO.
Exchange Filing	Exchange filing means submitting required information or documents to a stock exchange such as NSE or BSE.	After listing, ABC Ltd. makes an exchange filing with NSE to disclose important company information.

IPO Investor Categories

Term	Simple Definition	Example
Retail Investor/ Retail	A retail investor is an individual who invests their own money in shares, IPOs, mutual funds or other investments.	Rahul applies for an IPO using ₹20,000 from his savings, so he is a retail investor.
RII	RII stands for Retail Individual Investor, which is an individual applying for an IPO under the retail category.	Amit applies for an IPO worth ₹1 lakh as an RII.
QIB	QIB stands for Qualified Institutional Buyer, such as a mutual fund, bank or insurance company that meets SEBI's eligibility rules.	A mutual fund applies for ₹100 crore worth of shares in an IPO as a QIB.
Institutional Investor	An institutional investor is an organisation that invests large amounts of money in financial assets.	A mutual fund buys shares worth ₹200 crore, making it an institutional investor.
NII	NII stands for Non-Institutional Investor, which generally includes investors applying for more than the retail limit but who are not QIBs.	An individual applies for ₹5 lakh worth of IPO shares, so they apply under the NII category.
HNI	HNI stands for High Net Worth Individual and generally refers to an individual investing a large amount of money.	Raj applies for ₹15 lakh worth of IPO shares, so he may be considered an HNI under the applicable IPO category.
bNII/ BHNI	bNII means Big Non-Institutional Investor, applying for more than ₹10 lakh in an IPO.	An investor applying for ₹15 lakh worth of shares falls under bNII.
sNII/ SHNI	sNII means Small Non-Institutional Investor, applying for more than ₹2 lakh but up to ₹10 lakh in an IPO.	An investor applying for ₹5 lakh worth of shares falls under sNII.
Employee Quota	Employee quota is a portion of an IPO reserved for eligible employees of the company.	ABC Ltd. reserves 5 lakh shares for its eligible employees in its IPO.
Employee Reservation	Employee reservation means keeping a specific number of IPO shares aside for eligible employees.	ABC Ltd. reserves 2 lakh shares for employees at a specified price or discount.
Shareholder Quota	Shareholder quota is a portion of an IPO reserved for eligible existing shareholders of a company or its specified group company, as allowed in the issue.	If an IPO has a shareholder quota, eligible shareholders may apply for shares under that reserved category.
Policyholder Quota	Policyholder quota is a portion of an IPO reserved for eligible policyholders of the company's insurance business, where such a quota is provided.	In an insurance company IPO with a policyholder quota, eligible policyholders can apply under the reserved category.
Anchor Investor	An anchor investor is an eligible institutional investor that invests in an IPO before it opens to other investors.	A mutual fund invests ₹50 crore as an anchor investor one day before the IPO opens.
Anchor Investor Quota	Anchor investor quota is the portion of an IPO reserved for eligible institutional investors before the issue opens to the public.	An IPO reserves 30 lakh shares for anchor investors before opening for other investors.
DII	DII stands for Domestic Institutional Investor, such as Indian mutual funds, insurance companies and banks that invest in financial markets.	An Indian insurance company buys ₹100 crore of shares, making it a DII investor.
FII	FII stands for Foreign Institutional Investor, a term commonly used for eligible foreign institutions investing in Indian securities.	A foreign investment institution invests ₹200 crore in Indian stocks as an FII.
FPI	FPI stands for Foreign Portfolio Investor, which is a foreign investor registered to invest in India's financial markets.	An FPI buys ₹300 crore of shares listed on NSE.
Mutual Fund Investor	A mutual fund investor is a person or organisation that puts money into a mutual fund, which invests it in different securities.	Neha invests ₹5,000 every month in an equity mutual fund, making her a mutual fund investor.

IPO Reservation Terms

Term	Simple Definition	Example
IPO Reservation	IPO reservation means keeping a certain portion of an IPO's shares aside for specific investor categories.	An IPO may reserve shares for retail investors, QIBs, NIIs and employees.
QIB Quota	QIB quota is the portion of an IPO reserved for Qualified Institutional Buyers.	If 50% of an IPO is reserved for QIBs, eligible institutions can apply for that portion.
NII Quota	NII quota is the portion of an IPO reserved for Non-Institutional Investors.	An IPO reserves 15% of its shares for NIIs, such as large individual investors.
HNI Quota	HNI quota is the portion of an IPO available for high-value investors applying under the NII category.	An investor applying for ₹12 lakh worth of IPO shares may apply under the HNI/NII category, based on the issue rules.
Retail Quota	Retail quota is the portion of an IPO reserved for eligible retail individual investors.	If an IPO reserves 35% for retail investors, eligible retail applicants can compete for that portion.
RII Quota	RII quota is the portion of an IPO reserved for Retail Individual Investors.	An IPO keeps 35% of its shares for RIIs, allowing eligible small investors to apply under the retail category.
Shareholder Quota	Shareholder quota is a portion of an IPO reserved for eligible existing shareholders when such a reservation is provided in the issue.	Eligible shareholders of a company's group company can apply under the shareholder quota if the IPO provides one.
Anchor Quota	Anchor quota is the portion of an IPO allocated to eligible institutional investors before the IPO opens to other investors.	An IPO allocates shares worth ₹300 crore to anchor investors before opening to the public.
Market Maker Quota	Market maker quota is a portion of an SME IPO's shares kept for the market maker to support trading and liquidity.	In an SME IPO, a market maker receives a reserved portion of shares to help provide buy and sell quotes after listing.
Reserved Shares	Reserved shares are shares kept aside for a particular investor category.	An IPO reserves 10 lakh shares for employees, so these are reserved shares.
Reserved Category	Reserved category means a specific group of investors for whom some IPO shares are kept aside.	Retail investors, employees or eligible shareholders may be reserved categories in an IPO.
Reservation Percentage	Reservation percentage shows what percentage of an IPO is kept aside for a particular investor category.	If 35% of an IPO is reserved for retail investors, the retail reservation percentage is 35%.
Issue Allocation	Issue allocation is the process of distributing IPO shares among investors who applied for them.	If an IPO receives more applications than available shares, the shares are distributed according to the applicable allocation rules.
Category-wise Allocation	Category-wise allocation means distributing IPO shares separately among categories such as QIB, NII and retail investors.	An IPO may allocate 50% to QIBs, 15% to NIIs and 35% to retail investors.
Net Offer Allocation	Net offer allocation means distributing the shares available for public investors among the eligible investor categories.	If 1 crore shares form the net offer, those shares are allocated among the applicable QIB, NII and retail categories.

IPO Application Terms

Term	Simple Definition	Example
IPO Application	An IPO application is a request made by an investor to buy shares in an IPO.	Rahul applies for 100 shares of an IPO through his UPI app.
IPO Bid	An IPO bid is an investor's request to buy a specific number of shares at a chosen price.	Priya bids for 100 shares at ₹150 per share in an IPO.
IPO Bidding	IPO bidding is the process of applying for shares by choosing the quantity and, where required, the price.	An investor bids for 2 lots at ₹200 per share during the IPO period.
IPO Bid Price	IPO bid price is the price an investor offers to pay for each IPO share.	An investor bids at ₹95 per share when the IPO price band is ₹90–₹100.
Bid Quantity	Bid quantity is the number of shares an investor applies for in an IPO.	Amit applies for 100 shares, so his bid quantity is 100 shares.
Bid Amount	Bid amount is the total money required for the shares an investor bids for.	If Ravi bids for 100 shares at ₹200 each, his bid amount is ₹20,000.
Minimum Bid	Minimum bid is the smallest number of shares an investor can apply for in an IPO.	If the minimum lot is 50 shares, an investor cannot apply for fewer than 50 shares.
Maximum Bid	Maximum bid is the highest number of shares an investor can apply for under the applicable IPO category and rules.	If an investor can apply for a maximum of 20 lots, they cannot apply for 21 lots in that category.
Minimum Lot	Minimum lot is the smallest group of shares that an investor can apply for in an IPO.	If the lot size is 20 shares, the minimum lot is 20 shares.
Maximum Lot	Maximum lot is the highest number of lots an investor can apply for under the applicable category and IPO rules.	If the maximum allowed is 10 lots of 20 shares, an investor can apply for up to 200 shares.
Lot Size	Lot size is the fixed number of shares included in one IPO application lot.	If an IPO has a lot size of 30 shares, one lot contains 30 shares.
Application Size	Application size is the total value of shares an investor applies for in an IPO.	If Neha applies for 100 shares at ₹200 each, her application size is ₹20,000.
Minimum Investment	Minimum investment is the least amount of money needed to apply for an IPO.	If one lot has 20 shares priced at ₹100 each, the minimum investment is ₹2,000.
Maximum Investment	Maximum investment is the highest amount an investor can apply for under the applicable IPO category and rules.	If the maximum allowed application is 10 lots costing ₹5,000 each, the maximum investment is ₹50,000.
Bid Modification	Bid modification means changing details such as quantity or price in an IPO application before the allowed deadline.	Rahul changes his bid from 100 shares to 200 shares before the IPO closes.
Bid Cancellation	Bid cancellation means withdrawing an IPO bid before the permitted cancellation deadline.	Priya cancels her IPO application before the issue closes, as allowed under the IPO rules.
Valid Bid	A valid bid is an IPO application that meets the required rules and has all necessary details completed correctly.	An application with the correct PAN, bank or UPI details and required amount is a valid bid.
Invalid Bid	An invalid bid is an IPO application that does not meet the required rules or has incorrect or missing details.	An application with incorrect PAN details may be rejected as an invalid bid.
IPO Application Number	IPO application number is the unique number given to an investor's IPO application for identification and tracking.	Rahul uses his IPO application number to check his allotment status.
IPO Application Status	IPO application status shows the current stage or result of an investor's IPO application.	Priya checks her application status and sees that shares have been allotted to her.
IPO Mandate	An IPO mandate is an investor's authorisation to block the required IPO money in their bank account until it is needed or released.	Ravi approves an IPO mandate for ₹20,000, allowing the amount to be blocked in his bank account.
UPI Mandate	A UPI mandate is an authorisation through UPI that allows the IPO amount to be blocked in the investor's bank account.	Neha receives a UPI mandate request for ₹15,000 and approves it in her UPI app.
UPI ID	UPI ID is a unique payment address used to send and receive money through UPI.	Rahul uses his UPI ID, such as rahul@upi, while applying for an IPO.
UPI IPO Application	A UPI IPO application is an IPO application where the investor uses UPI to authorise blocking of the application amount.	Priya applies for an IPO through her broker and approves the ₹25,000 UPI mandate on her phone.
Application Supported by Blocked Amount (ASBA)	Application Supported by Blocked Amount is the full form of ASBA, where the IPO money is blocked in the investor's bank account during the allotment process.	If Neha applies for ₹20,000 through ASBA, the bank blocks ₹20,000 but does not transfer it unless shares are allotted.
Bank ASBA	Bank ASBA is a facility provided by eligible banks that allows investors to apply for IPOs by blocking the required amount in their bank account.	Rahul applies for an IPO through his bank's ASBA facility, and ₹25,000 is blocked in his account.
Net Banking ASBA	Net Banking ASBA allows investors to apply for an IPO through their bank's internet banking service using ASBA.	Priya logs into her bank's net banking account and applies for an IPO using the ASBA option.
IPO Payment	IPO payment is the money required for the shares an investor applies for in an IPO.	If an investor applies for 100 shares at ₹150 each, the IPO payment amount is ₹15,000.
Blocked Amount	Blocked amount is the money kept on hold in an investor's bank account for an IPO application.	Ravi applies for ₹20,000 worth of shares, so ₹20,000 is blocked until allotment and settlement.
Unblocking of Funds	Unblocking of funds means releasing the IPO money that was blocked when the investor does not receive those shares or when the excess amount is no longer required.	Priya applies for ₹30,000 but receives shares worth ₹10,000, so the remaining ₹20,000 is unblocked.

IPO Subscription Terms

Term	Simple Definition	Example
IPO Subscription	IPO subscription shows how many times investors have applied for the shares available in an IPO.	If an IPO offers 10 lakh shares and investors apply for 50 lakh shares, it is subscribed 5 times.
IPO Subscription Status	IPO subscription status shows the current level of demand for an IPO.	An IPO subscription status may show that the issue is subscribed 3.5 times on Day 2.
Live IPO Subscription	Live IPO subscription shows the latest available subscription figures while an IPO is still open.	An IPO shows 2.8x live subscription on the afternoon of its second day.
IPO Subscription Rate	IPO subscription rate shows the number of times the shares offered have been applied for.	If investors bid for 40 lakh shares against 10 lakh shares offered, the subscription rate is 4x.
Subscription Multiple	Subscription multiple tells how many times the total demand is compared with the shares available.	If 1 crore shares are offered and investors bid for 8 crore shares, the subscription multiple is 8x.
Overall Subscription	Overall subscription shows the total demand for an IPO across all investor categories.	If an IPO receives applications for 6 crore shares against 2 crore shares offered, the overall subscription is 3x.
Category-wise Subscription	Category-wise subscription shows the demand separately from retail, QIB, NII and other investor categories.	An IPO may be subscribed 2x by retail investors, 5x by QIBs and 8x by NIIs.
Retail Subscription	Retail subscription shows how many times retail investors have applied for the shares reserved for them.	If 20 lakh shares are reserved for retail investors and they apply for 60 lakh shares, retail subscription is 3x.
QIB Subscription	QIB subscription shows how many times Qualified Institutional Buyers have applied for their reserved shares.	If QIBs apply for 5 crore shares against 1 crore available shares, QIB subscription is 5x.
NII Subscription	NII subscription shows how many times Non-Institutional Investors have applied for their reserved shares.	NIIs apply for 4 crore shares against 1 crore available shares, giving an NII subscription of 4x.
HNI Subscription	HNI subscription shows the demand from high-value investors applying under the NII category.	HNI investors apply for 10 lakh shares against 2 lakh available shares, giving 5x subscription.
Employee Subscription	Employee subscription shows how many times eligible employees have applied for the shares reserved for them.	Employees apply for 4 lakh shares against 2 lakh reserved shares, giving 2x subscription.
Anchor Subscription	Anchor subscription refers to the shares allocated to eligible anchor investors before the IPO opens to other investors.	An IPO allocates ₹200 crore worth of shares to anchor investors before opening to the public.
Day 1 Subscription	Day 1 subscription shows the IPO demand recorded at the end of its first day.	An IPO receives bids for 1.5 times the available shares on Day 1, so its Day 1 subscription is 1.5x.
Day 2 Subscription	Day 2 subscription shows the IPO demand recorded at the end of its second day.	An IPO reaches 4x subscription by the end of Day 2.
Day 3 Subscription	Day 3 subscription shows the IPO demand recorded at the end of its third day.	An IPO reaches 12x subscription by the end of Day 3.
Final Subscription	Final subscription is the total subscription level recorded when the IPO bidding period ends.	If an IPO receives bids for 20 crore shares against 2 crore shares offered, its final subscription is 10x.
Oversubscription	Oversubscription happens when investors apply for more shares than the company has offered.	If an IPO offers 1 crore shares but receives bids for 5 crore shares, it is oversubscribed 5x.
Undersubscription	Undersubscription happens when investors apply for fewer shares than the company has offered.	If an IPO offers 1 crore shares but receives bids for only 80 lakh shares, it is undersubscribed.
Fully Subscribed	Fully subscribed means investors have applied for shares equal to the total shares offered.	If an IPO offers 1 crore shares and receives bids for exactly 1 crore shares, it is fully subscribed at 1x.
1x Subscription	1x subscription means investors have applied for exactly the number of shares offered.	If 10 lakh shares are offered and investors bid for 10 lakh shares, the IPO is subscribed 1x.
2x Subscription	2x subscription means investors have applied for twice the number of shares offered.	If 10 lakh shares are offered and investors bid for 20 lakh shares, the IPO is subscribed 2x.
10x Subscription	10x subscription means investors have applied for ten times the number of shares offered.	If 10 lakh shares are offered and investors bid for 1 crore shares, the IPO is subscribed 10x.
100x Subscription	100x subscription means investors have applied for 100 times the number of shares offered.	If 10 lakh shares are offered and investors bid for 10 crore shares, the IPO is subscribed 100x.
Bid Count	Bid count is the total number of bids or applications received for an IPO.	If an IPO receives 2 lakh applications, its bid count is 2 lakh.
Number of Applications	Number of applications is the total number of investor applications received for an IPO.	An IPO receives 5 lakh applications from investors, so its number of applications is 5 lakh.
Shares Bid	Shares bid is the total number of shares investors have applied for in an IPO.	If investors together apply for 5 crore shares, the shares bid are 5 crore.
Shares Offered	Shares offered is the total number of shares made available to investors in an IPO.	ABC Ltd. offers 1 crore shares in its IPO, so the shares offered are 1 crore.
Subscription Demand	Subscription demand is the level of investor interest shown by the number of shares or applications submitted for an IPO.	An IPO offering 1 crore shares receives bids for 8 crore shares, showing strong subscription demand.

IPO GMP & Grey Market Terms

Term	Simple Definition	Example
GMP (Grey Market Price)	GMP is the extra price at which an IPO share is informally traded before its official stock market listing.	If an IPO issue price is ₹100 and its GMP is ₹30, the grey market price is around ₹130.
Grey Market Premium	Grey Market Premium is the extra amount buyers may be willing to pay above the IPO issue price in the unofficial market.	If the IPO price is ₹150 and the grey market premium is ₹25, the implied price is ₹175.
Grey Market	Grey market is an unofficial market where IPO shares or applications may be traded before official listing.	Before an IPO lists on NSE, its shares may be informally traded in the grey market.
Live GMP	Live GMP is the latest reported grey market premium for an IPO at a particular time.	An IPO's reported live GMP rises from ₹20 in the morning to ₹30 in the evening.
GMP Trend	GMP trend shows how the reported grey market premium has changed over time.	An IPO's GMP moves from ₹15 to ₹25 and then ₹35, showing an upward GMP trend.
GMP History	GMP history shows the past reported GMP values of an IPO.	An IPO's GMP history shows ₹10 on Monday, ₹20 on Tuesday and ₹25 on Wednesday.
GMP Before IPO	GMP before IPO refers to the reported grey market premium before the IPO opens or lists.	An IPO with an issue price of ₹100 has a reported GMP of ₹25 before its issue opens.
GMP After IPO	GMP after IPO refers to the reported grey market premium after the IPO has opened or during the period leading to listing.	An IPO's reported GMP changes to ₹35 after strong subscription on the final day.
Estimated Listing Price	Estimated listing price is an unofficial estimate of where an IPO share may list based partly on its reported GMP.	If the issue price is ₹100 and GMP is ₹25, the estimated listing price may be around ₹125.
Expected Listing Price	Expected listing price is the price investors expect an IPO share may trade at when it lists on NSE or BSE.	Based on a reported GMP of ₹40 on a ₹200 issue price, some investors may expect a listing near ₹240.
GMP Percentage	GMP percentage shows the reported grey market premium as a percentage of the IPO issue price.	If the issue price is ₹200 and GMP is ₹40, the GMP percentage is 20%.
GMP Premium	GMP premium is the extra amount reported above the IPO issue price in the grey market.	If the IPO price is ₹500 and the GMP is ₹75, the GMP premium is ₹75 per share.
GMP Calculation	GMP calculation usually means adding the reported GMP to the IPO issue price to estimate an unofficial listing price.	With an issue price of ₹100 and GMP of ₹20, the estimated price is ₹120.
GMP Prediction	GMP prediction is an estimate of how the grey market premium may change or what listing price it may suggest.	If demand for an IPO is strong, some market participants may predict that its GMP could rise from ₹20 to ₹30.
GMP Signals	GMP signals are changes in reported grey market premiums that some investors use as an indication of possible IPO listing demand.	A rising reported GMP may be seen as a positive signal, but it does not guarantee a higher listing.
Grey Market Trading	Grey market trading is the unofficial buying and selling of IPO-related shares or applications before official listing.	Some market participants informally trade an IPO application before the shares are listed on NSE or BSE.
Unofficial Market	An unofficial market is a market operating outside the formal stock exchange system.	IPO grey market transactions take place outside NSE and BSE and are not the same as exchange trading.
Kostak Rate	Kostak rate is the amount reportedly paid to an IPO applicant for the right to the application, regardless of whether shares are allotted.	An investor receives a reported Kostak amount of ₹500 for selling the IPO application before allotment.
Kostak	Kostak is an unofficial arrangement where an IPO application is sold for a fixed amount before the allotment result.	Ravi agrees to sell his IPO application for a Kostak amount of ₹400.
Kostak Price	Kostak price is the fixed amount agreed for an IPO application in an unofficial grey market transaction.	If a buyer agrees to pay ₹600 for an IPO application, ₹600 is the Kostak price.
Subject to Sauda	Subject to Sauda is an unofficial deal where payment is made only if the seller receives IPO shares through allotment.	An investor agrees to a ₹2,000 Subject to Sauda deal, but receives the payment only if shares are allotted.
Subject to Sauda Rate	Subject to Sauda rate is the amount agreed to be paid for an IPO application if shares are allotted.	If the Subject to Sauda rate is ₹3,000, the seller receives ₹3,000 only if the application gets an allotment.
Sauda	Sauda is an informal grey market deal involving an IPO application or its potential allotment.	An investor makes a Sauda agreement linked to receiving IPO shares.
IPO Application Trading	IPO application trading means informally buying or selling an IPO application before the official allotment.	An investor informally agrees to sell their IPO application to another person before allotment.
IPO Grey Market Rate	IPO grey market rate is the unofficial price or premium being reported for an IPO outside the stock exchange.	An IPO with a ₹150 issue price has a reported grey market rate of ₹180, implying a ₹30 premium.

IPO Allotment Terms

Term	Simple Definition	Example
IPO Allotment	IPO allotment is the process of deciding which investors will receive shares after the IPO closes.	If an IPO receives more applications than available shares, the allotment process decides who gets shares.
IPO Allotment Status	IPO allotment status shows whether an investor has received IPO shares or not.	Rahul checks his allotment status and finds that he has been allotted 100 shares.
IPO Allotment Date	IPO allotment date is the scheduled date on which the IPO share allocation is finalised.	If the allotment date is August 25, investors can check their allotment after the process is completed.
Allotment Result	Allotment result shows the number of IPO shares an investor has been allotted.	Priya applied for 200 shares but her allotment result shows 100 shares.
IPO Allotment Check	IPO allotment check means checking whether an investor received shares in an IPO.	Amit enters his PAN details on the registrar's website to check his IPO allotment.
Allotment Process	Allotment process is the method used to distribute available IPO shares among eligible applicants.	When an IPO is heavily subscribed, the allotment process determines which retail applicants receive shares.
Allotment Ratio	Allotment ratio shows the proportion of applications that may receive shares in an oversubscribed IPO, where applicable.	If the effective allotment ratio is 1 out of 10 applications, roughly one eligible application may receive shares.
Allotment Probability	Allotment probability is the estimated chance of receiving shares in an oversubscribed IPO.	If an IPO is heavily subscribed, an investor may have a lower estimated probability of receiving shares.
Allotment Chance	Allotment chance means the likelihood that an investor will receive shares in an IPO.	If a retail IPO is subscribed 20 times, an investor's allotment chance may be relatively low.
Retail Allotment	Retail allotment is the distribution of IPO shares among eligible retail investors.	An IPO has 10 lakh shares reserved for retail investors, which are allotted according to the applicable rules.
HNI Allotment	HNI allotment is the distribution of IPO shares among eligible Non-Institutional or HNI investors.	Several HNI investors apply for an IPO, and the available NII shares are distributed according to the applicable rules.
QIB Allotment	QIB allotment is the distribution of IPO shares among Qualified Institutional Buyers.	Eligible mutual funds and other QIBs receive shares from the portion allocated to QIBs.
Anchor Allotment	Anchor allotment is the allocation of IPO shares to eligible institutional investors before the IPO opens to other investors.	A mutual fund receives an anchor allotment of 5 lakh shares before the IPO opens.
Proportionate Allotment	Proportionate allotment means shares are distributed according to the proportion of eligible bids when the applicable rules use this method.	If investors collectively bid for twice the available shares, an investor may receive shares in proportion to their eligible bid.
Lottery Allotment	Lottery allotment means eligible applications are selected randomly when there are more applications than available shares and the applicable rules require such a method.	If 10 lakh retail applications compete for 1 lakh minimum lots, a computerised draw may select the successful applicants.
Computerised Draw	A computerised draw is a system-based random selection used to decide successful IPO applicants when required.	If a retail IPO is heavily oversubscribed, a computerised draw may select applicants who receive the minimum lot.
Successful Allottee	A successful allottee is an investor who receives IPO shares through the allotment process.	Neha applies for an IPO and receives one lot, making her a successful allottee.
Unsuccessful Applicant	An unsuccessful applicant is an investor who does not receive any IPO shares.	Ravi applies for an IPO but receives no shares, so he is an unsuccessful applicant.
Partial Allotment	Partial allotment means an investor receives fewer shares than they applied for.	An investor applies for 200 shares but receives only 100 shares, resulting in partial allotment.
Share Allotment	Share allotment is the process of assigning IPO shares to investors after the issue closes.	ABC Ltd. completes share allotment and assigns shares to successful applicants.
IPO Share Allocation	IPO share allocation means distributing the available IPO shares among different investor categories and successful applicants.	The IPO allocates shares among QIB, NII and retail categories according to the issue rules.
IPO Allotment Status Check	IPO allotment status check means checking online whether an investor received IPO shares.	Priya checks her allotment using her PAN and application details on the registrar's website.
Registrar Allotment	Registrar allotment refers to the share allocation process managed by the IPO registrar according to the approved basis of allotment.	The IPO registrar processes investor applications and finalises the allotment according to the approved basis.
Allotment Verification	Allotment verification means checking the official records to confirm whether IPO shares were allotted to an investor.	Rahul verifies his allotment on the registrar's official website and confirms that 50 shares were allotted.

Refund & Demat Terms

Term	Simple Definition	Example
IPO Refund	IPO refund is the return of money that was blocked for an IPO but was not needed because shares were not allotted or were only partly allotted.	Ravi applied for ₹20,000 worth of shares but received shares worth ₹5,000, so the remaining ₹15,000 is returned or unblocked.
Refund Date	Refund date is the date on which the unused IPO application money is scheduled to be returned or unblocked.	If the refund date is August 26, the unused IPO amount is expected to be released around that date.
Refund Initiation	Refund initiation means the process of starting the release of money that is no longer required for an IPO application.	After allotment, the registrar initiates the refund of ₹10,000 that was not used.
Refund Amount	Refund amount is the part of the IPO application money that is returned or unblocked for an investor.	Neha's ₹25,000 was blocked, but shares worth ₹10,000 were allotted, so ₹15,000 is the refund amount.
Refund Status	Refund status shows whether the unused IPO money has been released or is still being processed.	Priya checks her refund status and sees that her ₹12,000 refund has been processed.
Fund Unblocking	Fund unblocking means releasing money that was blocked for an IPO application back for the investor to use.	An investor applies for ₹30,000 but receives no shares, so the blocked ₹30,000 is unblocked.
ASBA Unblocking	ASBA unblocking means releasing the IPO money that was blocked in the investor's bank account through ASBA.	Rahul applies for ₹20,000 through ASBA but receives no shares, so the ₹20,000 block is removed.
UPI Unblocking	UPI unblocking means releasing the IPO amount that was blocked through a UPI mandate.	Priya has ₹15,000 blocked through a UPI mandate, and the amount is unblocked after she receives no shares.
Demat Account	A demat account is an electronic account used to hold shares and other securities without physical certificates.	When Ravi buys 50 shares of an NSE-listed company, the shares are held in his demat account.
Demat Credit	Demat credit means adding securities electronically to an investor's demat account.	After receiving an IPO allotment, 100 shares are credited to Neha's demat account.
Shares Credited	Shares credited means the allotted shares have been added to the investor's demat account.	Priya receives an IPO allotment of 50 shares, and those 50 shares are credited to her demat account.
IPO Shares Credit	IPO shares credit means the shares allotted in an IPO are electronically added to the investor's demat account.	ABC Ltd. allots 100 shares to Rahul, and the 100 IPO shares are credited to his demat account before listing.
NSDL	NSDL is one of India's two main depositories that electronically holds shares and other securities for investors.	Rahul's demat account is maintained through a Depository Participant connected to NSDL.
CDSL	CDSL is one of India's two main depositories that electronically holds shares and other securities for investors.	Priya's shares are held electronically through a demat account connected to CDSL.
Depository	A depository is an organisation that holds shares and other securities electronically on behalf of investors.	NSDL and CDSL are India's two main depositories.
DP ID	DP ID is the identification number given to a Depository Participant connected with NSDL or CDSL.	An investor's demat details include a DP ID that identifies their Depository Participant.
Client ID	Client ID is the unique number used to identify an investor's demat account with a Depository Participant.	Rahul's DP provides him a Client ID that helps identify his demat account.
Demat Account Number	Demat account number is the unique number used to identify an investor's electronic securities account.	Priya enters her demat account number when providing details for receiving IPO shares.

IPO Listing Terms

Term	Simple Definition	Example
IPO Listing Date	IPO listing date is the day when a company's IPO shares start trading on a stock exchange.	ABC Ltd.'s IPO shares start trading on NSE on August 30, making August 30 its listing date.
Listing Price	Listing price is the price at which an IPO share starts trading on the stock exchange.	If ABC Ltd. was issued at ₹100 and starts trading at ₹125, its listing price is ₹125.
Listing Gain	Listing gain is the profit when an IPO share starts trading above its issue price on listing day.	An IPO share issued at ₹100 lists at ₹130, giving a ₹30 listing gain per share.
Listing Loss	Listing loss is the loss when an IPO share starts trading below its issue price on listing day.	An IPO share issued at ₹100 lists at ₹90, resulting in a ₹10 listing loss per share.
Listing Premium	Listing premium is the amount by which an IPO share lists above its issue price.	If the issue price is ₹200 and the listing price is ₹240, the listing premium is ₹40.
Listing Discount	Listing discount is the amount by which an IPO share lists below its issue price.	If the issue price is ₹150 and the listing price is ₹135, the listing discount is ₹15.
Listing Performance	Listing performance shows how an IPO share performs when it starts trading compared with its issue price.	An IPO issued at ₹100 and listed at ₹120 has a positive listing performance.
Expected Listing	Expected listing is the price at which investors or analysts expect an IPO share to start trading.	Based on market demand, investors expect an IPO issued at ₹100 to list around ₹125.
Actual Listing	Actual listing is the real price at which an IPO share starts trading on the stock exchange.	An IPO was expected to list at ₹125 but actually starts trading at ₹118.
Opening Price	Opening price is the price at which a share first trades on the stock exchange on a trading day.	ABC Ltd.'s share starts the trading day at ₹250, so ₹250 is its opening price.
Opening Bell	Opening bell is the traditional signal that marks the start of trading on a stock exchange.	Company officials attend the opening bell ceremony when their shares are listed on NSE.
Listing Day	Listing day is the first day when a company's IPO shares are available for trading on the stock exchange.	ABC Ltd.'s IPO shares begin trading on August 30, making it the listing day.
Listing Gain Percentage	Listing gain percentage shows the listing gain as a percentage of the IPO issue price.	If an IPO is issued at ₹100 and lists at ₹120, the listing gain percentage is 20%.
IPO Listing Prediction	IPO listing prediction is an estimate of the price at which an IPO share may start trading.	Based on reported market indicators, an IPO issued at ₹200 may be predicted to list around ₹230.
Stock Exchange Listing	Stock exchange listing means a company's shares are officially admitted for trading on a recognised stock exchange.	After its IPO, ABC Ltd.'s shares are listed and traded on NSE and BSE.
BSE Listing	BSE listing means a company's shares are officially listed and available for trading on BSE.	ABC Ltd.'s IPO shares start trading on BSE after completing the listing process.
NSE Listing	NSE listing means a company's shares are officially listed and available for trading on NSE.	ABC Ltd.'s IPO shares begin trading on NSE on its listing day.
SME Listing	SME listing means the shares of a small or medium-sized company are listed on an SME platform such as BSE SME or NSE Emerge.	ABC Small Ltd. completes its SME IPO and its shares start trading on NSE Emerge.
Mainboard Listing	Mainboard listing means a company's shares are listed on the main trading platform of a stock exchange after meeting the required conditions.	A large company completes its IPO and its shares begin trading on the NSE Mainboard.

IPO Timeline Terms

Term	Simple Definition	Example
IPO Announcement	IPO announcement is the public news that a company plans to launch an IPO.	ABC Ltd. announces that it plans to raise ₹500 crore through an IPO.
IPO Filing Date	IPO filing date is the date on which a company submits its IPO-related documents to the regulator.	ABC Ltd. files its IPO documents with SEBI on August 10.
DRHP Filing Date	DRHP filing date is the date on which a company submits its Draft Red Herring Prospectus to SEBI.	ABC Ltd. files its DRHP with SEBI on August 10, making August 10 its DRHP filing date.
RHP Filing Date	RHP filing date is the date on which a company files or makes its Red Herring Prospectus available as required before the IPO.	ABC Ltd. files its RHP before the IPO opens, giving investors the latest issue details.
IPO Approval Date	IPO approval date is the date when the required authority gives the relevant clearance for the IPO to proceed.	ABC Ltd. receives the required IPO clearance on September 5.
IPO Open Date	IPO open date is the first day when investors can apply for shares in an IPO.	If ABC Ltd.'s IPO opens on September 10, investors can start applying on September 10.
IPO Closing Date	IPO closing date is the last day on which investors can normally apply for an IPO.	If an IPO closes on September 12, investors must submit their applications within the permitted time on that date.
IPO Subscription Date	IPO subscription date refers to a date during which investors can subscribe or apply for shares in an IPO.	An IPO is open for subscription from September 10 to September 12.
Anchor Bidding Date	Anchor bidding date is the date when eligible anchor investors are allocated or invited to bid for shares before the IPO opens to other investors.	ABC Ltd. completes its anchor allocation on September 9, one day before the IPO opens.
Allotment Date	Allotment date is the scheduled date when the IPO shares are allocated to successful applicants.	If the allotment date is September 15, investors can check their allotment after the process is completed.
Refund Date	Refund date is the scheduled date when unused IPO application money is returned or unblocked.	An investor receives no shares, and the blocked ₹20,000 is released around the refund date.
Demat Credit Date	Demat credit date is the date when allotted IPO shares are credited to an investor's demat account.	ABC Ltd. credits 100 allotted shares to Rahul's demat account on September 16.
Listing Date	Listing date is the day when IPO shares start trading on a stock exchange.	ABC Ltd.'s shares begin trading on NSE on September 18, making it the listing date.
IPO Timeline	IPO timeline is the sequence of important events from IPO filing to share listing.	ABC Ltd.'s timeline includes DRHP filing, IPO opening, closing, allotment, demat credit and listing.
IPO Schedule	IPO schedule is the planned list of important dates and activities related to an IPO.	ABC Ltd.'s IPO schedule shows that the issue opens on September 10 and closes on September 12.
IPO Calendar	IPO calendar is a list showing important dates and details of upcoming and ongoing IPOs.	An investor checks an IPO calendar to see which Indian IPOs are opening this week.
IPO Important Dates	IPO important dates are the key dates investors need to know before applying for an IPO.	The important dates include the IPO open date, closing date, allotment date and listing date.
IPO Event	An IPO event is an important activity or stage in the IPO process.	IPO opening, closing, allotment and listing are all IPO events.
IPO Closing Time	IPO closing time is the deadline on the final day until which IPO applications can normally be submitted.	If an IPO closes at 5:00 PM on the final day, applications must be submitted within the permitted time.
Bidding Period	Bidding period is the time during which investors can submit their bids for an IPO.	If an IPO is open from September 10 to September 12, these dates form its bidding period.

IPO Registrar & Intermediaries

Term	Simple Definition	Example
IPO Registrar	An IPO registrar is the company that manages investor applications, allotment and related IPO records.	After an IPO closes, the registrar processes applications and helps determine which investors receive shares.
Registrar to the Issue	Registrar to the Issue is the appointed registrar responsible for handling IPO applications, allotment and investor records.	ABC Ltd. appoints a registrar to process applications and publish the IPO allotment status.
IPO Registrar Company	An IPO registrar company is a specialised company that handles the administrative work of an IPO.	An IPO registrar company checks applications and processes the final share allotment.
Lead Manager	A lead manager is a financial institution that helps a company plan, manage and complete its IPO.	ABC Ltd. appoints an investment bank as lead manager for its ₹1,000 crore IPO.
Book Running Lead Manager	A Book Running Lead Manager helps manage the IPO bidding process and works with the company on pricing and issue management.	The BRLM manages investor bids and helps ABC Ltd. determine the final IPO price.
BRLM	BRLM stands for Book Running Lead Manager, the financial institution that manages key parts of an IPO.	ABC Ltd. appoints XYZ Investment Bank as its BRLM for the IPO.
Merchant Banker	A merchant banker provides financial and advisory services to companies for activities such as IPOs and fundraising.	ABC Ltd. hires a merchant banker to help prepare and manage its IPO.
Investment Banker	An investment banker helps companies raise money and provides advice on deals such as IPOs, mergers and acquisitions.	An investment bank helps ABC Ltd. raise ₹2,000 crore through its IPO.
Underwriter	An underwriter is an institution that agrees to support an issue by taking up shares if the public does not subscribe to the required amount, as per the underwriting agreement.	If part of an issue remains unsubscribed, the underwriter may have to take up the remaining shares according to the agreement.
Underwriting	Underwriting is an arrangement where an underwriter agrees to support a public issue by taking up shares that are not subscribed by investors, subject to the agreement.	A company has an underwriting agreement covering ₹100 crore of its IPO in case the public does not subscribe fully.
Sponsor	A sponsor is a person or organisation that supports or promotes a financial product or investment structure, depending on the type of issue.	In a specialised investment structure, a sponsor may provide the initial support needed to set it up.
Market Maker	A market maker regularly provides buy and sell quotes for a security to help maintain trading liquidity.	After an SME IPO listing, the market maker provides buy and sell quotes to support trading in the shares.
IPO Banker	An IPO banker is a bank involved in handling payments and other banking-related activities for an IPO.	An IPO banker helps process money related to applications and settlements.
Banker to the Issue	Banker to the Issue is the bank appointed to handle the collection and movement of money related to a public issue.	The banker to the issue handles funds received from investors applying for the IPO.
Legal Advisor	A legal advisor helps the company ensure that its IPO documents and process follow applicable laws and regulations.	ABC Ltd.'s legal advisor reviews its IPO documents before they are filed with the authorities.
Auditor	An auditor independently checks a company's financial statements and reports whether they are prepared properly under applicable accounting rules.	ABC Ltd.'s auditor checks its financial statements before they are included in the IPO documents.
Depository	A depository electronically holds investors' shares and other securities.	NSDL and CDSL are India's two main depositories holding securities electronically.
Stock Exchange	A stock exchange is a regulated platform where shares and other securities are bought and sold.	NSE and BSE are stock exchanges where listed Indian company shares are traded.
Syndicate Member	A syndicate member is an intermediary appointed to help collect and process investor bids for a public issue.	A syndicate member accepts IPO bids from investors and sends the required information for processing.
IPO Intermediary	An IPO intermediary is an organisation that helps with different parts of the IPO process, such as applications, banking, legal work or listing.	The registrar, lead manager, banker and stock exchange can all play intermediary roles in an IPO.

SME IPO Terms

Term	Simple Definition	Example
NSE Emerge	NSE Emerge is NSE's platform for eligible small and medium-sized companies to raise money and list their shares.	ABC Ltd. raises ₹40 crore through an SME IPO and lists its shares on NSE Emerge.
SME Exchange	An SME exchange is a dedicated stock exchange platform for listing and trading shares of eligible small and medium-sized companies.	An SME company can list its shares on platforms such as BSE SME or NSE Emerge.
SME IPO Lot Size	SME IPO lot size is the fixed number of shares an investor must apply for in one lot of an SME IPO.	If an SME IPO has a lot size of 1,000 shares at ₹100 each, one lot costs ₹1 lakh.
SME IPO Minimum Investment	SME IPO minimum investment is the smallest amount an investor generally needs to apply for the minimum lot of an SME IPO.	If the minimum lot is 1,000 shares at ₹100 each, the minimum investment is ₹1 lakh.
SME IPO Reservation	SME IPO reservation means keeping a specific portion of an SME IPO for eligible investor categories according to the applicable rules.	An SME IPO may reserve shares for retail or other eligible categories as specified in its issue documents.
SME IPO Subscription	SME IPO subscription shows how many times investors have applied for the shares offered in an SME IPO.	An SME IPO offers 10 lakh shares and receives bids for 50 lakh shares, giving a 5x subscription.
SME IPO GMP	SME IPO GMP is the reported unofficial premium of an SME IPO share in the grey market above its issue price.	If an SME IPO issue price is ₹100 and its reported GMP is ₹20, the implied grey market price is around ₹120.
SME IPO Allotment	SME IPO allotment is the process of deciding which eligible investors receive shares after the SME IPO closes.	If an SME IPO receives more applications than available shares, the allotment process decides who receives shares.
SME IPO Listing	SME IPO listing is when an SME company's IPO shares officially start trading on an SME platform.	ABC Ltd.'s shares begin trading on NSE Emerge after completing its SME IPO.
SME IPO Market Maker	An SME IPO market maker is an appointed market participant that provides buy and sell quotes to support liquidity after the shares are listed.	After ABC Ltd. lists on BSE SME, its appointed market maker provides buy and sell quotes.
Market Maker Portion	Market maker portion is the shares reserved for the market maker in an SME IPO as required under the applicable rules.	An SME IPO reserves a specified number of shares for its market maker before listing.
SME IPO Trading	SME IPO trading means buying and selling SME-listed shares after they start trading on the exchange.	After listing, investors can trade ABC Ltd.'s shares on the SME platform subject to the applicable trading rules.
SME IPO Migration	SME IPO migration is the process of moving an eligible SME-listed company from an SME platform to the main board after meeting the required conditions.	ABC Ltd. grows significantly and later meets the requirements to migrate from NSE Emerge to the NSE Mainboard.
SME IPO Application	SME IPO application is a request by an eligible investor to buy shares offered through an SME IPO.	Rahul applies for one lot of 1,000 shares in an SME IPO.
SME IPO Risk	SME IPO risk refers to the higher risks that may come with investing in smaller companies, such as lower liquidity and greater price movements.	An SME share may have fewer buyers and sellers, so its price can move sharply when an investor wants to sell.
SME IPO Eligibility	SME IPO eligibility means the conditions a company or investor must meet to participate in an SME IPO.	A company must meet the applicable exchange and regulatory requirements before it can launch an SME IPO.

Company & Business Terms

Term	Simple Definition	Example
Market Share	Market share is the percentage of total sales in a market that comes from a particular company.	If Indian companies sell 100 lakh smartphones and ABC sells 10 lakh, ABC has a 10% market share.
KPI (Key Performance Indicators)	KPIs are important numbers used to measure how well a company is performing.	A company may track revenue growth, profit margin and number of customers as its KPIs.
Promoters	Promoters are the people or entities who started or control a company and have significant ownership or control in it.	The founders of ABC Ltd. who control the company are its promoters.
Promoter Group	Promoter group includes the promoters and certain related persons or entities that are treated as part of the promoter group under applicable rules.	A company's founders and certain companies controlled or connected with them may form its promoter group.
Promoter Holding	Promoter holding is the percentage of a company's shares owned by its promoters.	If promoters own 6 crore out of 10 crore shares, their promoter holding is 60%.
Promoter Stake	Promoter stake is the ownership percentage that promoters have in a company.	If a promoter owns 45% of ABC Ltd., the promoter's stake is 45%.
Pre-IPO Holding	Pre-IPO holding is the percentage or number of shares owned by promoters and other shareholders before the IPO.	Before its IPO, the founders own 70% of ABC Ltd.; this is their pre-IPO holding.
Post-IPO Holding	Post-IPO holding is the percentage or number of shares owned by a shareholder after the IPO is completed.	A promoter owns 70% before the IPO and 60% after it, so the post-IPO holding is 60%.

IPO Financial Terms

Term	Simple Definition	Example
Total Revenue	Total revenue is the total money a company earns from its business activities during a period.	ABC Ltd. earns ₹500 crore from selling its products in one year, so its revenue is ₹500 crore.
EBITDA	EBITDA is the profit a company makes from its operations before interest, tax, depreciation and amortisation are deducted.	ABC Ltd. earns ₹100 crore in operating profit before these costs, so its EBITDA is ₹100 crore.
EBITDA Margin	EBITDA margin shows EBITDA as a percentage of total revenue.	If revenue is ₹500 crore and EBITDA is ₹100 crore, the EBITDA margin is 20%.
EBIT	EBIT is the profit a company earns before paying interest and tax.	ABC Ltd. earns ₹80 crore before interest and tax, so its EBIT is ₹80 crore.
EBIT Margin	EBIT margin shows EBIT as a percentage of total revenue.	If revenue is ₹400 crore and EBIT is ₹60 crore, the EBIT margin is 15%.
Operating Profit	Operating profit is the profit a company earns from its main business after operating expenses are deducted.	ABC Ltd. earns ₹100 crore from its business after paying operating costs, so its operating profit is ₹100 crore.
Operating Margin	Operating margin shows operating profit as a percentage of revenue.	If revenue is ₹500 crore and operating profit is ₹75 crore, the operating margin is 15%.
PAT	PAT means Profit After Tax, which is the profit left after a company pays its taxes.	ABC Ltd. earns ₹100 crore before tax and pays ₹25 crore in tax, leaving ₹75 crore PAT.
PAT Margin	PAT Margin shows PAT as a percentage of the company's total revenue, indicating how much profit the company earns from its revenue.	ABC Ltd. has ₹100 crore revenue and ₹10 crore PAT, giving it a 10% PAT Margin.
Profit After Tax	Profit After Tax is the money left with a company after paying all applicable taxes.	If a company earns ₹200 crore before tax and pays ₹50 crore in tax, its profit after tax is ₹150 crore.
Net Profit	Net profit is the final profit a company earns after its expenses, interest and taxes are deducted.	ABC Ltd. earns ₹80 crore as its final profit after all expenses and taxes.
Profit Margin	Profit margin shows how much of the company's revenue remains as profit.	If revenue is ₹500 crore and net profit is ₹50 crore, the profit margin is 10%.
Net Worth	Net worth is the value left for shareholders after subtracting a company's total liabilities from its total assets.	If ABC Ltd. has assets of ₹1,000 crore and liabilities of ₹600 crore, its net worth is ₹400 crore.
Total Assets	Total assets are everything valuable that a company owns or controls.	ABC Ltd. has cash, buildings, machinery and inventory worth ₹1,000 crore in total.
Total Liabilities	Total liabilities are all the amounts a company owes to others.	ABC Ltd. owes ₹600 crore to banks, suppliers and others, making its total liabilities ₹600 crore.
Total Borrowings	Total borrowings are the total amount of money a company has borrowed from banks and other lenders.	ABC Ltd. has loans of ₹300 crore, so its total borrowings are ₹300 crore.
Debt	Debt is money borrowed by a company that it must repay, usually with interest.	ABC Ltd. takes a ₹100 crore bank loan to build a new factory, creating debt of ₹100 crore.
Net Debt	Net debt is a company's total debt after subtracting its cash and cash equivalents.	If a company has ₹300 crore debt and ₹100 crore cash, its net debt is ₹200 crore.
Cash & Cash Equivalents	Cash and cash equivalents are money and very short-term investments that a company can quickly use.	ABC Ltd. has ₹50 crore in bank accounts and short-term investments that can quickly be converted into cash.
Working Capital	Working capital is the money available to a company for its day-to-day business operations.	If ABC Ltd. has ₹200 crore in current assets and ₹150 crore in current liabilities, its working capital is ₹50 crore.
Cash Flow	Cash flow shows the money coming into and going out of a company during a period.	ABC Ltd. receives ₹500 crore from customers and pays ₹400 crore for expenses, creating positive cash flow from operations.
Operating Cash Flow	Operating cash flow is the cash generated or used by a company's main business activities.	ABC Ltd. collects ₹500 crore from customers and pays ₹400 crore for operating costs, generating ₹100 crore of operating cash flow.
Investing Cash Flow	Investing cash flow shows money spent or received from activities such as buying or selling assets and investments.	ABC Ltd. spends ₹100 crore to buy new machinery, creating a ₹100 crore investing cash outflow.
Financing Cash Flow	Financing cash flow shows money received or paid through activities such as loans, share issues, dividends and repayments.	ABC Ltd. raises ₹200 crore by issuing shares, creating a ₹200 crore financing cash inflow.
Earnings Per Share(EPS)	Earnings Per Share is the portion of a company's profit attributable to each equity share.	ABC Ltd. earns ₹50 crore and has 5 crore shares, giving it an EPS of ₹10.
Diluted EPS	Diluted EPS shows earnings per share after considering potential additional shares that could be created from instruments such as options or convertible securities.	If a company has an EPS of ₹10 but potential additional shares reduce it to ₹9, its diluted EPS is ₹9.
Book Value	Book value is the value of a company's net assets available to shareholders.	If a company has assets of ₹1,000 crore and liabilities of ₹700 crore, its book value is ₹300 crore.
Return on Equity	Return on Equity shows how much profit a company earns compared with the shareholders' money invested in it.	If a company earns ₹20 crore profit on ₹100 crore of shareholders' equity, its ROE is 20%.
ROE	ROE stands for Return on Equity and measures the profit earned on shareholders' equity.	A company with ₹50 crore profit and ₹250 crore equity has an ROE of 20%.
Return on Capital Employed	Return on Capital Employed shows how efficiently a company generates operating profit from the capital used in its business.	If ABC Ltd. earns ₹30 crore EBIT from ₹200 crore of capital employed, its ROCE is 15%.
ROCE	ROCE stands for Return on Capital Employed and measures the return generated from capital used in the business.	If EBIT is ₹40 crore and capital employed is ₹200 crore, ROCE is 20%.
Debt-to-Equity Ratio	Debt-to-equity ratio compares a company's borrowings with the money invested by its shareholders.	If a company has ₹200 crore debt and ₹400 crore equity, its debt-to-equity ratio is 0.5.
Price-to-Earnings Ratio(P/E Ratio)	Price-to-Earnings Ratio shows how much investors are paying for each ₹1 of a company's earnings.	A P/E of 25 means investors are paying ₹25 for every ₹1 of annual earnings.
Price-to-Book Ratio	Price-to-Book Ratio shows how much investors are paying compared with the book value of each share.	If a share trades at ₹200 and its book value per share is ₹100, its P/B ratio is 2.
EV/EBITDA	EV/EBITDA compares a company's enterprise value with its EBITDA to show how highly the business is valued relative to its operating earnings.	If a company's enterprise value is ₹1,000 crore and EBITDA is ₹100 crore, its EV/EBITDA is 10.
Valuation Multiple	A valuation multiple is a number used to compare a company's value with its earnings, sales or other financial measure.	If a company is valued at ₹1,000 crore and earns ₹100 crore, its valuation multiple based on earnings is 10x.
Financial Performance	Financial performance shows how well a company is doing based on revenue, profit, cash flow and other financial results.	ABC Ltd.'s revenue and profit both increase for three years, showing improving financial performance.
Financial Track Record	Financial track record shows how a company's financial results have performed over several past years.	ABC Ltd. has increased its revenue from ₹300 crore to ₹600 crore over the last five years, showing a strong revenue track record.
Profit Growth	Profit growth is the increase in a company's profit over a period of time.	ABC Ltd.'s profit rises from ₹50 crore to ₹65 crore, showing 30% profit growth.
Revenue Growth	Revenue growth is the increase in a company's sales or revenue over a period of time.	ABC Ltd.'s revenue rises from ₹400 crore to ₹500 crore, showing 25% revenue growth.
Margin Growth	Margin growth means an increase in the percentage of revenue that remains as profit or operating earnings.	A company's operating margin rises from 12% to 15%, showing margin growth.

IPO Objectives & Fund Utilisation

Term	Simple Definition	Example
IPO Objectives	IPO objectives are the main reasons why a company wants to raise money through an IPO.	ABC Ltd. plans to use its IPO money to build a new factory and repay some loans.
Objects of the Issue	Objects of the issue explain how a company plans to use the money raised through its IPO.	ABC Ltd. mentions that ₹200 crore will be used for expansion and ₹100 crore for debt repayment.
Use of IPO Proceeds	Use of IPO proceeds explains where the money raised from the IPO will be spent.	A company raises ₹500 crore and plans to use ₹300 crore for a new plant and ₹200 crore for general business needs.
Utilisation of Funds	Utilisation of funds means how the money raised through an IPO is actually used by the company.	ABC Ltd. uses ₹100 crore from its IPO proceeds to buy new machinery.
IPO Proceeds	IPO proceeds are the money a company receives from investors through its IPO, subject to the issue structure.	ABC Ltd. raises ₹1,000 crore through its IPO, giving it ₹1,000 crore of gross IPO proceeds before applicable expenses.
Capital Expenditure	Capital expenditure is money spent on buying or improving long-term assets such as factories, machinery or equipment.	ABC Ltd. spends ₹150 crore to build a new manufacturing plant, which is capital expenditure.
Capex	Capex is the short form of capital expenditure, meaning money spent on long-term business assets.	A company uses ₹50 crore to buy new machines, so its capex is ₹50 crore.
Debt Repayment	Debt repayment means paying back money borrowed from banks or other lenders.	ABC Ltd. uses ₹100 crore from its IPO proceeds to repay a bank loan.
Debt Reduction	Debt reduction means lowering the total amount of money a company owes to lenders.	A company has ₹500 crore of debt and repays ₹100 crore, reducing its debt to ₹400 crore.
Acquisitions	Acquisitions mean buying another company or business, fully or partly, to expand or strengthen the business.	ABC Ltd. uses ₹200 crore to acquire an Indian technology company and expand its services.

IPO Post-Listing Terms

Term	Simple Definition	Example
Post-Listing Performance	Post-listing performance shows how a company's share price performs after it starts trading on the stock exchange.	ABC Ltd. lists at ₹120 and rises to ₹150 after one month, showing positive post-listing performance.
Share Price Performance	Share price performance shows how the price of a company's shares changes over a period of time.	ABC Ltd.'s share price rises from ₹100 to ₹125 in three months, showing a 25% increase.
Listing Day Performance	Listing day performance shows how an IPO share performs on its first day of stock market trading.	An IPO share lists at ₹120 and closes at ₹115 on the first day, showing its listing-day performance.
Closing Price	Closing price is the last traded price of a share at the end of a trading session.	If ABC Ltd.'s share finishes the trading day at ₹250, ₹250 is its closing price.
Intraday Price	Intraday price is the price of a share at any time during the trading day.	ABC Ltd.'s share moves between ₹240 and ₹260 during the day, so these are its intraday prices.
Upper Circuit	Upper circuit is the maximum price level a share is allowed to reach in a trading session under the applicable circuit limit.	If a share's previous closing price is ₹100 and its upper circuit is 20%, it cannot trade above ₹120 that day.
Lower Circuit	Lower circuit is the minimum price level a share is allowed to fall to in a trading session under the applicable circuit limit.	If a share's previous closing price is ₹100 and its lower circuit is 20%, it cannot trade below ₹80 that day.
Circuit Limit	Circuit limit is the maximum allowed price movement of a share during a trading session.	If a stock has a 10% circuit limit and its previous close was ₹200, its allowed range may be ₹180 to ₹220.
Trading Volume	Trading volume is the total number of shares bought and sold during a specific period.	If 5 lakh shares of ABC Ltd. are traded in one day, its trading volume is 5 lakh shares.
Market Volume	Market volume is the total number of shares traded across a particular market, exchange or group of securities during a period.	If 100 crore shares are traded across NSE in a day, the market volume is 100 crore shares.
Shareholding Pattern	Shareholding pattern shows who owns a company's shares and what percentage each group holds.	ABC Ltd.'s shareholding pattern shows 55% with promoters, 30% with public investors and 15% with institutions.
Public Shareholding	Public shareholding is the percentage of a company's shares owned by investors other than its promoters and promoter group.	If promoters own 60% of a company, the remaining 40% may be held by public shareholders.
Institutional Holding	Institutional holding is the percentage of a company's shares owned by institutions such as mutual funds, insurance companies and other eligible institutions.	Mutual funds and insurance companies together own 15% of ABC Ltd., giving institutions a 15% holding.
Lock-in Period	Lock-in period is a period during which certain shareholders are not allowed to sell their shares, subject to applicable rules.	If certain IPO shares have a one-year lock-in, those shares cannot be sold during that period.
Lock-in Shares	Lock-in shares are shares that cannot be sold for a specified period because of applicable regulations or issue terms.	A promoter has 2 crore lock-in shares that cannot be sold until the applicable lock-in period ends.
Anchor Lock-in	Anchor lock-in is the period during which shares allotted to anchor investors cannot be sold, as per applicable rules.	An anchor investor receives IPO shares but must hold them for the specified lock-in period before selling them.
Post-IPO Lock-in	Post-IPO lock-in is the period after an IPO during which certain shares remain restricted from being sold.	After the IPO, some promoter shares remain locked in for the required period before they can be sold.

Regulatory & SEBI Terms

Term	Simple Definition	Example
SEBI (Securities and Exchange Board of India)	SEBI is the Indian regulator that oversees the securities market and protects investors.	SEBI sets rules that companies and intermediaries must follow when launching an IPO.
Listing Obligations	Listing obligations are the rules a listed company must follow after its shares are listed on a stock exchange.	A listed company must regularly disclose its financial results and important information to the stock exchange.
Regulatory Compliance	Regulatory compliance means following the laws, rules and requirements set by the relevant authorities.	An IPO company follows SEBI requirements while preparing and filing its IPO documents.
Public Issue Regulations	Public issue regulations are the rules that companies must follow when offering shares or other securities to the public.	A company follows SEBI's public issue rules while launching its IPO.
IPO Guidelines	IPO guidelines are the rules and requirements that a company must follow to launch and list its IPO.	Before launching an IPO, ABC Ltd. follows the applicable SEBI and stock exchange requirements.
SEBI Observation Letter	A SEBI observation letter contains SEBI's observations or comments on a company's IPO documents after its review.	SEBI raises questions about ABC Ltd.'s IPO documents, and the company responds before moving ahead.
Corporate Governance	Corporate governance means the system of rules and practices used to manage a company fairly and responsibly.	A company follows proper board procedures and discloses important information to shareholders as part of good corporate governance.
Disclosure	Disclosure means providing important company information to investors and regulators in a clear and timely manner.	ABC Ltd. discloses a major lawsuit in its IPO documents so investors know about the risk.
Related Party Transaction	A related party transaction is a business deal between a company and a person or entity connected to the company.	ABC Ltd. buys services worth ₹5 crore from a company owned by one of its promoters.
Litigation	Litigation means a legal dispute that is being handled through a court or legal process.	ABC Ltd. is involved in a court case over a ₹10 crore contract dispute.
Outstanding Litigation	Outstanding litigation means legal cases involving a company that are still pending or not finally resolved.	ABC Ltd. has a pending ₹20 crore court case, so it is an outstanding litigation matter.
Legal Proceedings	Legal proceedings are formal actions or processes taken in a court, tribunal or other legal authority.	ABC Ltd. is involved in legal proceedings related to a dispute with a supplier.

Small but Valuable IPO Search Terms

Term	Simple Definition	Example
IPO Application Limit	IPO application limit is the maximum amount or number of shares an investor can apply for under the applicable investor category and IPO rules.	If the applicable limit allows an investor to apply for ₹10 lakh, they cannot submit an application above ₹10 lakh in that category.
IPO Bid Limit	IPO bid limit is the maximum quantity or amount an investor can bid for in an IPO under the applicable rules.	If the maximum allowed bid is 5,000 shares, an investor cannot bid for 6,000 shares.
IPO UPI Limit	IPO UPI limit is the maximum amount that can generally be authorised through a UPI mandate for an IPO application, subject to the applicable rules and bank limits.	If the applicable UPI limit is ₹5 lakh, an investor can authorise an IPO mandate of up to ₹5 lakh through UPI.
IPO Demat Credit	IPO demat credit means the allotted IPO shares are added electronically to the investor's demat account.	Rahul receives an allotment of 100 shares, and those 100 shares are credited to his demat account before listing.