What happens if ipo is not fully subscribed

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What happens to the rest of your money corresponding to shares that you had applied for but did not receive? You do not make any payment while applying for an IPO. Only the money corresponding to your bid gets blocked in your account and you cannot use the amount till the IPO process is over.

Therefore, the bid amount will be marked as a lien in your account by your bank and your bid will be registered with the exchange. If your bid is successful, the amount will be debited from your account and shares will be allotted.

Otherwise, the blocked amount would be released and you would now be able to use it. Similarly, if you receive shares in an amount lower than the applied number. Like in the example above, only the amount corresponding to shares, that is one lot, would be debited from your account and the rest would be released. Any amount that is blocked against an unsuccessful bid in an IPO would automatically be unblocked post the allotment of shares.

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When a company in india issues shares to the public. Companies normally hire an investment bank as their underwriters during an IPO process. Underwriters assist companies evaluate the correct IPO valuation. ABC company is going public.

Investors do quite a bit of business through one of the underwriting brokers, so you are given the opportunity to purchase shares in the offering.