In other words, close to 75% of retail investors were allotted no IPO shares at all . However, there is always a chance that the number of retail investors surpass the maximum number of shares issued. In that case, the eligibility for the minimum bid lot is determined by the draw of lots.
You can invest in a private company even before its initial public offer (IPO) by buying its unlisted shares. One of the main reasons investors buy these shares is for the expected gains. Companies sell these shares at a discounted price to tempt investors to buy a significant stake of their unlisted shares.
Eligibility norms required to invest in an IPO It is required that the investor interested in buying a share in an IPO has a PAN card issued by the Income Tax department of the country . One also needs to have a valid Demat account. It is not required to have a trading account, a Demat account serves the purpose.
All the trading that occurs on the stock market after the IPO is between investors; the company gets none of that money directly . The day of the IPO, when the money from big investors hits the corporate bank account, is the only cash the company gets from the IPO.