Every company needs funds to improve and expand their business, repay loans etc. Raising money from the public makes it comparatively easier for companies to grow their business.An IPO or Initial Public Offering is the first step where companies sell their equity to the public to raise funds. During the IPO process, a certain number of shares are earmarked for different categories of investors such as HNIs, institutional investors and retail. IPOs can be fixed price issues, book building issues or a combination of both.

In fixed price issues, the price at which the securities are offered is made known in advance. Investors are notified if securities are allotted. Book Building is used by companies to raise funds through both Initial Public Offer and Follow-on Public Offers.Investors can apply for Initial Public Offering through ASBA (Application Supported by Blocked Amount) from their mobile banking app or internet banking. ASBA is an application that blocks the money that you want to subscribe to an issue. If the application is selected for allotments, the money is debited from the bank account.

IPO allotment status is available online within one week after the issue closes. Online IPO allotment status gives details about the number of shares that was applied and the number of shares that were allocated to the investor.