01
Company decides to raise money
The company plans to raise capital from public investors.
Investor should know: Understand why the company needs money.Visual IPO school by IPO Lens
Master IPO Investing Step by Step
Everything a retail investor needs to know about IPOs — explained in simple language with real examples, visual guides and risk warnings.
No finance textbook energy. Just a guided scroll story that shows what happens from DRHP to allotment to listing day.
Beginner Friendly100% FreePractical & SimpleNo Investment Advice
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IPO Lens Learn OSBeginner mode
DRHP / RHPRead the story
Price band₹120 - ₹125
Subscription7.2x
+18%market sentiment
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Allotment
01 · What is an IPO?
An IPO is the first public share sale of a private company.
An IPO, or Initial Public Offering, is when a private company offers its shares to the public for the first time. After listing, investors can buy and sell those shares on the stock exchange.
Think of it as a company opening its ownership door to public investors, while asking the market to decide what the business is worth.
Private Company
IPO
Stock Exchange
Public Investors
Company raises capital
The company collects money to fund growth, repay debt or support operations.
Shares get listed
After the IPO process, shares begin trading on a stock exchange.
Investors can buy and sell
Once listed, public investors can trade shares through the market.
02 · IPO Journey Map
From private company to listing day
Follow the journey step by step and notice what a retail investor should check at each stage.
02
DRHP filed with SEBI
The company files a draft document with details about business, financials and risks.
Investor should know: Read risk factors and objects of issue.03
RHP and price band announced
The final IPO details, price range and dates are announced before opening.
Investor should know: Check valuation, lot size and dates.04
IPO opens for subscription
Investors can apply during the bidding window.
Investor should know: Check GMP, subscription, financials and risks before applying.05
Allotment happens
Applications are processed and shares are allotted based on demand.
Investor should know: High demand may reduce allotment chances.06
Listing day
Shares start trading on the exchange at the listed market price.
Investor should know: Listing can be above, near or below issue price.03 · How allotment works
Applying for an IPO does not always mean you get shares.
After an IPO closes, applications are checked category-wise. If demand is higher than shares available, the registrar follows allotment rules and many investors may receive a refund instead of shares.
7.0x subscription example
When many more investors apply, only some applications receive shares. This is a simplified education view, not a prediction.
Allotment Probability MeterHigh demand
33%Success Rate
Registrar checks category, valid bids and demandAllotment engine
Shares allotted8
Refund / no shares16
In oversubscribed IPOs, money is blocked during application and released if shares are not allotted.
04 · Key IPO Terms
Simple words you will see on every IPO page
Tap a card to expand it. The goal is not to memorize terms, but to understand what each signal tells you.
The total money the company wants to raise through the IPO.
The minimum and maximum price range for IPO bids.
The minimum number of shares needed for one IPO application lot.
Grey Market Premium is an unofficial premium before listing.
How many times investors applied compared to shares available.
The IPO application category for small individual investors.
Qualified Institutional Buyers such as mutual funds, banks and institutions.
Non-Institutional Investors, often high net-worth or larger applicants.
The process of assigning IPO shares after applications close.
Gain when shares list above the IPO issue price.
Draft Red Herring Prospectus, the early IPO document filed with SEBI.
Red Herring Prospectus, the updated document before the IPO opens.
01
Understand the business
Can you explain what the company sells, who its customers are and how it makes money?
+16
02
Check financial growth
Look for steady revenue and profit growth instead of one lucky year.
+18
03
Look at profitability and debt
Profits, margins and manageable debt make the business easier to understand.
+17
04
Compare valuation with peers
A famous company can still be expensive. Compare P/E and other metrics with similar listed companies.
+15
05
Study subscription and GMP
Demand and market sentiment help, but do not apply only because GMP is high.
+14
06
Read risks and objects of issue
Know what can go wrong and how IPO money will be used before applying.
+20
06 · Mainboard vs SME IPOs
Same IPO idea, very different risk profile
Both routes bring companies to public markets, but beginners should treat SME IPOs with extra care.
Mainboard IPO
- Usually larger companies
- More liquidity
- Better disclosures
- Lower relative risk compared to SME
SME IPO
- Smaller companies
- Higher risk
- Lower liquidity
- Wider price swings
- More careful research needed
SME IPOs can be risky, less liquid and more volatile.
Beginners should be extra careful and should understand lot size, liquidity and listing risk before applying.
07 · Risks to Consider
Every IPO has risk, even popular ones
Risk is not a reason to panic. It is a reason to research slowly and avoid blind applications.
Market Risk
A weak market can affect listing even if the IPO looks popular.
Business Risk
The company may face competition, margin pressure or customer concentration.
Valuation Risk
A good company can still be expensive at the IPO price.
Liquidity Risk
Some shares may not trade actively after listing, especially in SME IPOs.
GMP Risk
GMP is unofficial, volatile and can disappear before listing.
Allotment Risk
You may not receive shares even after applying.
Listing Risk
The stock can list below issue price and create a loss.
SME Risk
SME IPOs can have wider price swings and lower liquidity.
No IPO gives guaranteed listing gains.
Good research improves your understanding, but market outcomes can still be different from expectations.
08 · Apply or Avoid Framework
Should I apply for this IPO?
Use this as an educational checklist before you apply. It does not tell you what to buy, but it helps you avoid blind decisions.
This is only an educational checklist, not a recommendation.
Do I understand the company?
Are revenues/profits growing?
Is valuation reasonable?
Is debt manageable?
Are risks acceptable?
Is GMP supported by subscription demand?
Is it mainboard, or am I extra careful if it is SME?
Can I handle listing loss?
Complete the checklist
Answer each question to see a beginner-friendly research comfort signal.
09 · Mini Quiz
Check your IPO basics in five questions
Quick, simple and built for beginners. No finance degree required.
1Is GMP a confirmed profit?
2What is price band?
3Does high subscription always mean listing gain?
4Why are SME IPOs riskier?
5What should you read before applying?
Your IPO learning score: 0/5
Now research live IPOs on IPO LensAnswer all questions to complete the quiz.
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IPO Lens is for educational and informational purposes only. We do not provide investment advice or IPO recommendations. IPO investments are subject to market risks. GMP is unofficial and not guaranteed. Please read the DRHP/RHP before investing.