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Akriti Tomar

• Understanding DRHP: A Key Document for IPO Investments

  By : Akriti Tomar | January 4, 2025

  Understanding DRHP: A Key Document for IPO Investments The first step for any investor entering the stock market is to thoroughly understand the companies they want to invest in. For companies launching an Initial Public Offering (IPO), the Draft Red Herring Prospectus (DRHP) plays a pivotal role. This document provides vital information about a company and serves as a foundation for informed investment decisions. Below, we explain what a DRHP is, its key sections, and how it differs from an

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• How does Shareholders Quota work in IPO?

  By : Akriti Tomar | January 4, 2025

  How does Shareholders Quota work in IPO? When a company goes public through an Initial Public Offering (IPO), it offers its shares to the public for the first time. In many cases, existing shareholders of the company are given a special privilege: the opportunity to participate in the IPO through a designated “Shareholder Quota.” This quota allows existing shareholders to apply for additional shares in the company’s IPO, often at a preferential rate or with increased allotment chances. How Does

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• What is Strike Price in Options? Meaning and Examples

  By : Akriti Tomar | January 4, 2025

  What is Strike Price in Options? Meaning and Examples The strike price is the fixed price at which a call or put option can be exercised on or before its expiry date. In the case of a call option, the strike price is the amount at which the underlying asset can be bought. Conversely, for a put option, it is the price at which the asset can be sold. On the expiration date, the strike price at which the option

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• A Beginner’s Guide to Options Trading

  By : Akriti Tomar | January 3, 2025

  A Beginner’s Guide to Options Trading Options are versatile financial instruments granting the holder the right, but not the obligation, to buy while the seller must honor the contract if the buyer chooses to exercise their option. They provide flexibility and cost-efficiency, though they come with inherent complexities and limited lifespan. This guide explores the fundamentals, terminologies, and strategies of options trading. Topics Covered What Are Options? Key Terminologies in Options Trading Participants in Option Trading How Options Trading Works

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• How to Apply for an IPO under the NIB or HNI Category

  By : Akriti Tomar | January 3, 2025

  How to Apply for an IPO under the NIB or HNI Category Investing in an Initial Public Offering (IPO) can provide a rewarding opportunity to participate in a company’s debut in the stock market. For Non- Institutional bidders (NIBs) or High Net-Worth Individuals (HNIs), the application process involves specific requirements and considerations, distinguishing them from other investor categories. This guide outlines the steps and key aspects of applying for an IPO under the NIBs category, helping you navigate this investment

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• What is Block Deal?

  By : Akriti Tomar | January 3, 2025

  Introduction A block deal is a significant financial transaction involving a large volume of shares or securities exchanged between two parties outside the open market. These transactions typically exceed 0.5% of a company’s total outstanding shares and are usually executed through negotiated agreements. A block deal refers to the buying or selling of a substantial quantity of securities in a single transaction. The minimum threshold for a block deal is either 5 lakh shares or shares worth at least Rs.

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• Who are Qualified Institutional Buyers (QIBs) in India?

  By : Akriti Tomar | January 3, 2025

  Who are Qualified Institutional Buyers (QIBs) in India? Qualified Institutional Buyers (QIBs) are a significant force in India’s capital markets, comprising sophisticated investors with the financial acumen and resources to navigate complex investment landscapes. These entities, distinguished by their substantial investment capacity and in-depth market knowledge, play a pivotal role in driving capital formation and economic growth. Who Qualifies as a QIB? According to the Securities and Exchange Board of India (SEBI), the following entities are classified as QIBs: Mutual

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• Dos and Don’ts of  Primary Market

  By : Akriti Tomar | January 2, 2025

  Dos and Don’ts of  Primary Market Investing in the stock market offers a variety of opportunities, one of which is the primary market, often referred to as the IPO market. Here, investors buy securities directly from companies before their stocks start trading in the secondary market. While the primary market presents opportunities for profit, it is not without risks. Fraud can occur in any market, so investors must approach primary market dealings with caution and diligence. What is the Primary

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• What is the Primary Market? Meaning, Functions, Advantages, and Disadvantages

  By : Akriti Tomar | January 2, 2025

  What is the Primary Market? Meaning, Functions, Advantages, and Disadvantages The primary market acts as the foundation for new securities entering the financial ecosystem. This article delves into the key aspects of the primary market, its functions, advantages, disadvantages, and how it differs from the secondary market. What is the Primary Market? The primary market is where new securities—such as stocks or bonds—are issued for the first time. It serves as a platform for companies, governments, and organizations to raise

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• What is Grey Market and Grey Market Premium (GMP)?

  By : Akriti Tomar | January 2, 2025

  What is Grey Market and Grey Market Premium (GMP)? When a company launches an Initial Public Offering (IPO), anticipation often builds among investors ahead of its stock’s official listing on the exchange. During this period, an unofficial market known as the grey market operates, allowing the informal trading of IPO shares before their formal debut. Central to this activity is the “Grey Market Premium” (GMP), a metric that reflects investor sentiment and demand for the IPO. This article delves into

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