An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives shares to the investors in the company. Investors can buy IPO application forms from their share brokers. The minimum application money differs from issue to issue. In a normal issue, the Lead managers decide the value and this would be notified on the form. In a book building issue,
a price range is declared and the investors who quote higher value would be allotted. The maximum application amount in retail segment is Rs.3,00,000. Once the share is listed in the exchange the share of the company becomes freely tradable.