I am planning to apply for Cochin Shipyard IPO via HDFC Bank.
There is a discount per share of Rs 21 for the retail category.
If the price band is Rs 424 - Rs 432, should i be applying a lot of 30 shares with the mentioned price band or should i be deducting the Rs 21 from 424-432 range and applying.
First time applying for a PSU IPO, so confused, please help.
Firstly, you’ll have to use Internet explorer to apply for the issue if you’re using HDFC’s portal, that way, you’ll be able to see the “Cut Off Price” option against the first bid option on the screen (Currently it’s hidden with details of the issue).
There’s nothing that you’ll need to do as an investor whilst applying. You’ve to apply for the bid at the rate you want to pay for the stock. To increase your chances of getting allotment, you can choose to apply at the cut-off price. If you’re lucky enough to receive allotment (I’m saying lucky because chances of oversubscription to this issue is very high ), you will receive allotment at the discounted price since you’re bidding under the Retail category.
I applied for 1 lot after clicking the “cut off” option, and as i understood it, if allotment is done, the IPO will be allotted to me at discounted price per share.