Basic questions about IPO

[ShubhS9]

@StupidSoldier

When I applied, I didn’t choose NSE or BSE. Where is my application? Who decide the exchange for the IPO bids?

The exchange you submit bids on doesn’t make any difference. We place bids on NSE.

@StupidSoldier

So 9-9:45 AM is book building period and no orders will be filled during it? Order will be filled at 9:45 AM?

Orders will be collected from 9 AM till 9:45 AM. While order matching will be done post this from 9:45 AM till 9:55 AM. You can check out more details on NSE website.

@StupidSoldier

I assume 9-9:45 is price discovery period. Which period is pre-market session in IPO? How is pre-market session different from discovery period?

Both are the same just different ways to say it. As I explained above this session held on listing day from 9 AM till 9:45 AM is the same as the pre-market session held every day. The purpose is to determine the opening price, for stock listing, it happens to be the listing price.

@StupidSoldier

Also one more question about propertionate allotment. Supposed IPO got subcribed 5x times. If I invested 10L, I assume I will get share worth 2L (20%). In such cases, I can just invest 50L (theortically) if I want share worth 10L?

This post explains the proportionate allotment methodology in detail:

Regarding HNI investment in IPO

As per the latest General Information Document (Page 37) issued by SEBI in March 2020, the method for allotment for HNIs (referred to as NIIs) in case of an over-subscribed offer is as follows - 7.5 BASIS OF ALLOTMENT FOR QIBs (OTHER THAN ANCHOR INVESTORS), NIIs AND RESERVED CATEGORY IN CASE OF OVER-SUBSCRIBED OFFER In the event of the Offer being over-subscribed, the Issuer may finalise the Basis of Allotment in consultation with the Designated Stock Exchange in accordance with the SEBI ICDR …