IPO - Initial Public Offering

The lock-in period for IPO shares refers to a duration during which specific investors are restricted from selling their shares post-listing. This period varies based on the type of investor:

• Promoters: The lock-in period for promoters ranges from 6 months to 18 months, ensuring their commitment to the company's long-term growth
• Anchor Investors: Typically, anchor investors face a shorter lock-in period of 30 to 90 days, depending on regulatory norms and the specific IPO

IPOs can be volatile and may not perform as expected in the short term. Investors risk losing capital if the stock price drops after listing, especially if the company does not meet its growth projections.

Information on upcoming IPOs is often available through brokerage platforms, financial news sites, and regulatory bodies like SEBI, which publishes details on companies going public. You can also get these details under the upcoming IPO section on Bajaj Markets.

Eligibility for an IPO typically includes:

• Retail Investors: Individuals who invest in smaller amounts, usually under the “retail investor” category, with certain limits
• Qualified Institutional Buyers (QIBs): Entities like mutual funds, banks, and insurance companies, who invest large sums
• Non-Institutional Investors (NIIs): High-net-worth individuals or entities investing above the retail threshold

Investors must have a Demat and trading account to apply, and in some cases, certain financial or residency qualifications may apply depending on local regulations.

SME (Small and Medium Enterprise) IPOs generally carry higher risk but may provide significant growth potential. Investors should research the company’s stability, financials, and sector risks, as SME stocks can be more volatile compared to large-cap companies.