Mainboard IPOs

What is a Mainboard IPO?

A Mainboard Initial Public Offering (IPO) is the process in which large private companies sell their shares to the public for the first time to raise funds. These shares are listed on the major stock exchanges like the National Stock Exchange (NSE) and the BSE (formerly known as the Bombay Stock Exchange). 

The companies opting for mainboard IPOs are generally large corporations having a higher market capitalization, often exceeding ₹500 crore. However, to qualify as a mainboard IPO, these company must have a post-issue paid-up capital of ₹10 crore and must meet the specific eligibility criteria set by SEBI and the respective stock exchanges (NSE and BSE).

Key Characteristics of Mainboard IPO

• Larger Issue Size: Mainboard IPOs are launched by large and established companies with a post-issue paid-up capital of ₹10 crore or more. These companies usually have a strong business and steady financial performance.
• Lists on Major Exchanges: The shares from Mainboard IPOs are listed and traded on major stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
• Wide Investor Participation: It is open to all investors and can be applied for by retail investors, high-net-worth individuals (HNIs), and institutional investors, making them widely accessible.
• Have a set price band: Most Mainboard IPOs follow a book-building process, where investors bid within a set price range.
• Higher liquidity: Since these stocks trade on major exchanges, they generally offer better liquidity post-listing.

Why Apply for Mainboard IPO?

• Investing in a mainboard IPO lets you own shares of large, established companies listed on major exchanges (NSE and BSE), offering transparency, liquidity, and potential long-term growth.
• Mainboard IPOs let you invest across different sectors and companies, helping you spread risk and build a balanced portfolio.
• Applying for an IPO is free as there are no brokerage or regulatory fees involved, unlike buying shares on the secondary market.
• Once listed, the shares of mainboard companies are traded on major stock exchanges like NSE and BSE, offering high liquidity to investors. This means you can easily buy or sell your shares anytime during market hours.
• Mainboard IPOs follow strict SEBI and exchange guidelines where the companies must share detailed financial and business information, helping you make informed decisions.

How to Apply for Mainboard IPO on Groww?

Applying for a Mainboard IPO on Groww is simple and completely online:

1. Login to Groww: Open the Groww app or website and sign in to your account.
2. Go to the IPO section: After signing in, navigate to the ‘IPO’ tab under the ‘Stocks’ section.
3. Select the IPO: Browse through the list of upcoming and open IPOs. Select the preferred Mainboard IPO from the list.
4. Enter bid details: Choose the number of lots and bid price (or apply at cut-off).
5. Confirm and pay: Complete your UPI payment through your registered UPI ID.
6. Track application: You can check the IPO application and allotment status directly on Groww.