IPO Guru

What Are Currency Swaps? Currency swaps might sound complicated, but once you break them down, they’re easy to understand. At their core, currency swaps are a financial agreement between two parties to exchange one currency for another. This exchange happens at a pre-agreed rate and time. Essentially, it’s like a deal between two people or businesses from different countries who need each other's currency for a specific time. For example, let’s say there’s a company in the US that needs euros, and a company in Europe that needs dollars. Instead of both going to the currency exchange market, they can do a currency swap. They agree to exchange their dollars for euros and vice versa, and after a certain period, they swap them back. This way, they avoid the risks of fluctuating exchange rates and save on transaction costs. How Do Currency Swaps Work? To make it simple, let’s look at the two main steps involved in a currency swap: Initial Exchange of Currency : At the start of the swap,

What is IPO Subscription? When a company decides to go public by offering shares through an Initial Public Offering (IPO), investors have the opportunity to buy these shares. The process through which investors express their interest in purchasing these shares is called IPO subscription . This process allows both institutional and retail investors to place bids for a company's shares before they hit the stock market. How Does IPO Subscription Work? IPO subscription essentially reflects the demand for the shares being offered. If the number of shares requested by investors exceeds the number of shares offered by the company, the IPO is said to be oversubscribed . On the other hand, if the demand is lower than the supply of shares, it is undersubscribed . Companies usually offer shares through two main methods: Fixed Price Issue and Book Building Process. Fixed Price Issue : Here, the company decides a fixed price at which the shares will be sold. Investors must agree to this price w

When a company grows and reaches a point where it needs more funds to expand, it often considers going public by launching an Initial Public Offering (IPO). Going public essentially means offering shares of the company to the public for the first time. This process comes with many benefits, which is why companies take this step. Let’s break it down in simple terms. 1. Raising Capital for Growth One of the main reasons companies go public is to raise funds. When a company sells shares in an IPO, it gets a significant amount of capital from investors. This capital can be used to expand business operations, develop new products, invest in technology, or even acquire other companies. Essentially, the IPO provides an influx of cash without the company needing to take on debt. Unlike loans, which have to be paid back with interest, the money raised from selling shares doesn’t require repayment. 2. Brand Recognition and Trust Launching an IPO can significantly boost a company’s reputation. Be

In simple terms, the lot size in an IPO refers to the minimum number of shares you need to purchase when applying for that IPO. Companies don't usually sell shares one at a time during their IPOs; instead, they bundle them into lots. For example, if a company sets a lot size of 50, it means you can only apply for shares in multiples of 50—like 50, 100, 150, and so on. Why Does Lot Size Matter? The lot size is crucial for several reasons: Accessibility : Lot sizes determine how much money you’ll need to invest in an IPO. If a lot size is large, say 100 shares, and each share costs ₹500, you'll need ₹50,000 to apply for just one lot. Smaller lot sizes make IPOs more accessible to retail investors who may not have large sums of money. Retail Investor Allocation : In many IPOs, a portion of the shares is reserved specifically for retail investors. The lot size helps manage this allocation by ensuring that shares are distributed evenly among many investors, rather than just a few bu

If you’re looking to invest in an IPO ( Initial Public Offering ) and want to make the process smoother, ASBA (Application Supported by Blocked Amount) is your go-to method. It's super convenient and ensures that your money stays safe until shares are allotted. Let’s break down how you can apply for an IPO through ASBA in an easy, step-by-step way. What is ASBA? First off, what exactly is ASBA? ASBA is a mechanism that allows you to apply for an IPO without transferring the money immediately. Instead, your money is "blocked" in your bank account and is only debited when you get the shares. This means your funds continue earning interest while they’re in the account, and if you don't get the shares, the money remains untouched. Step 1: Check Eligibility Before diving in, make sure you have an active bank account with one of the banks that offer ASBA services. Most major banks in India, like SBI, HDFC, ICICI, and Axis, support ASBA. Also, you need a Demat account becaus

When a company like Tata Technologies goes public with an Initial Public Offering (IPO), it allows everyday investors like you and me to buy shares of the company. This process can be exciting, but it's also important to know how to check allotted shares . In this blog post, we'll walk you through the steps to check Tata Technologies IPO allotment. We'll also touch on the best stock platform in India for such tasks and share tips on how to increase your chances of IPO allotment. Step-by-Step Guide to Check Tata Technologies IPO Allotment Understand the Basics Before diving into the steps, it’s important to know what IPO allotment means. When you apply for an IPO, you’re essentially bidding for shares. If demand exceeds supply, not everyone gets shares. The allotment process is a lottery system where shares are distributed among the applicants. Visit the Registrar’s Website The first place to check your IPO allotment status is the registrar’s website. For Tata Technologies