Glossary
Common IPO and stock market terms, explained simply.
- GMP (Grey Market Premium)
- The unofficial premium at which IPO shares or applications trade before listing, used as an informal sentiment indicator.
- ASBA
- Application Supported by Blocked Amount — the mechanism where your IPO application amount is blocked in your bank account, not debited, until allotment.
- QIB
- Qualified Institutional Buyer — large institutional investors like mutual funds, banks and insurance companies who get a reserved category in most IPOs.
- NII / HNI
- Non-Institutional Investor — individuals or entities applying for more than ₹2 lakh worth of shares in an IPO.
- Retail Category
- The portion of an IPO reserved for individual investors applying for shares worth up to ₹2 lakh.
- Lot Size
- The minimum number of shares you must apply for in an IPO, fixed by the company based on the price band.
- Price Band
- The range (lower and upper price) within which investors can bid for shares in a book-built IPO.
- Cut-off Price
- Applying at the "cut-off price" means you agree to pay whatever final price is discovered within the band — commonly used by retail investors.
- Oversubscription
- When total bids received exceed the number of shares on offer in a category, expressed as a multiple (e.g. "12.5x subscribed").
- Listing Gain/Loss
- The percentage difference between the IPO issue price and the price at which the stock opens or closes on its first trading day.