Glossary of IPO Terms (A–Z)

Overview

This glossary provides a comprehensive A–Z list of commonly used IPO-related terms to help investors, students, and readers understand the language used in IPO subscription, allotment, and listing processes.

The definitions below are intended for educational and informational purposes only and simplify regulatory and market concepts for easier understanding.

Glossary of IPO & Market Terms (A–Z)

A – Allotment: Allocation of shares to investors after IPO closure.
A – ASBA: Application Supported by Blocked Amount; funds remain blocked until allotment.
A – Anchor Investor: QIBs allotted shares before IPO opening.
B – Basis of Allotment: Registrar-approved method of share distribution.
B – Book Building: Price discovery process using investor bids.
B – Bid Lot: Minimum tradable unit in an IPO application.
B – BSE: One of India’s major stock exchanges.
C – Cut-Off Price: Final price determined after bidding.
C – Closing Date: Last day to submit IPO applications.
D – DRHP: Draft Red Herring Prospectus filed with SEBI.
D – Demat Account: Electronic account to hold securities.
E – E-IPO: Online IPO application facility.
F – Face Value: Nominal value of a share.
F – FPO: Further Public Offering by an already listed company.
G – GMP: Grey Market Premium indicating unofficial demand.
H – HNI / NII: Non-institutional investors applying above retail limits.
I – IPO: Initial Public Offering of shares.
I – Issue Size: Total capital raised via IPO.
L – Listing Date: First trading day of IPO shares.
L – Lock-in Period: Restriction period on selling shares.
M – Market Lot: Minimum tradable quantity on exchange.
M – Merchant Banker: SEBI-registered intermediary managing IPO.
N – NSE: One of India’s major stock exchanges.
O – Oversubscription: Demand exceeds shares offered.
O – OFS: Offer for Sale by existing shareholders.
P – Prospectus: Final SEBI-approved IPO document.
P – Price Band: Lower and upper bid limits.
Q – QIB: Institutional investors like mutual funds.
R – Retail Investor (RII): Applicants investing up to ₹2 lakh.
R – Registrar: Entity handling allotment and refunds.
S – SME IPO: IPO of small and medium enterprises.
S – Subscription Ratio: Demand-to-supply multiple.
U – Undersubscription: Demand less than shares offered.
U – UPI Mandate: Payment authorization for IPO bids.
V – Volatility: Price fluctuation post listing.
Z – Z Category (SME): Companies with regulatory or financial stress.

Important Note

This glossary is meant to improve conceptual clarity and does not replace official definitions provided by SEBI, NSE, or BSE.

Readers should always refer to official regulatory documents for precise legal interpretations.