Seamlessly apply for IPOs through online or offline channels. Explore your options and eligibility to start investing today.
Applying for an initial public offering is crucial for individuals looking to gain early access to a newly listed company's shares at potentially lower prices. The application process involves several important steps to ensure that you are eligible to participate and well-prepared.
You must have a clear understanding of how to apply for an IPO and the different modes available. This could help improve the chances of securing an allocation and capitalising on the investment opportunity.
To apply for an IPO online, you typically need the following accounts:
You will require a bank account to transfer funds for buying IPO shares. Make sure you can access your bank's online banking service to facilitate these transactions for IPO applications.
You will need a trading account with a brokerage firm or a stockbroker. This account allows you to trade various securities like stocks, bonds, and mutual funds, including participating in IPOs.
A Demat account is essential for holding securities in electronic form. When you purchase IPO shares, they're directly credited to your Demat account.
Many IPO applications in India are facilitated via the UPI payment system. You will need a UPI ID for making payments during this process.
There are two ways in which you can apply for an IPO online, i.e. through internet banking or a broker. Before applying through the first option, you must understand what is an Application Supported by Blocked Amounts (ASBA) and how it works.
ASBA is an alternative payment mode. It blocks the amount paid towards the shares until the allotment of the issue is finalised. If the bid is successful, the funds will be debited from your bank account and the allotted shares will be transferred to your Demat account.
With this information covered, here's how you could apply for an IPO online:
Here is how to apply for an IPO online if you have an active internet banking account:
Visit your bank’s official website and log into your account
Navigate to the ‘Application Supported by Blocked Amounts (ASBA)’ option
Look for an option that allows you to apply for an IPO
Fill out any necessary fields, like PAN details and your name
Enter the lot size you wish to bid as well as the price
Submit your application
Verify the actual steps to apply for an IPO via internet banking through your respective bank. Certain banks may not accept applications after a specific time on a trading day. In this case, you may have to wait until the next trading day to get your application accepted.
Here is how to apply for IPOs through a SEBI-authorised broker:
Visit the broker’s official website and log in to your account (or register if you don't have one)
Search for the ‘IPO’ tab on the dashboard and click on it
Choose the IPO in which you wish to invest from the list of available IPOs
Enter the bid quantity and price for each security, and submit your application
Enter your UPI ID and open the UPI third-party application to approve the payment request
Remember, once you apply for an IPO on UPI, the bank will block the amount for the lot size you bid. If you get the shares, the same will be deducted from your account. If not, the amount will be unblocked/refunded. You may receive a communication for the same.
Here are some steps you may have to follow while applying for an IPO offline:
Visit your nearest bank branch or an office of a brokerage firm
Fill out the ASBA application form
Provide your KYC details and other requested details
Submit the application
In the offline process, the amount gets blocked and will get deducted if the shares are allotted to you.
To apply for an IPO, you need to fulfil the following eligibility requirements:
To invest in an IPO, you must meet SEBI guidelines as an approved investor
You must have a PAN card
You must have a Demat and trading account with a SEBI-recognised Depository Participant (DP)
Your Demat account must be linked with your bank account with the minimum balance to purchase IPO units
By opting for the online IPO application process, you can enjoy the following benefits:
Save time by avoiding visits to the bank or the broker’s office
Experience a convenient, seamless, and transparent application process
Funds for IPO application in your savings account may earn interest until share allotment
Online payments seamlessly transfer funds from your bank or via digital methods like UPI
Automated online processes reduce errors, ensuring accurate application submission
In conclusion, while you can use either the online or offline IPO application process, the former saves you time and effort. To start your IPO application process, you need to choose a SEBI-authorised broker and choose an upcoming IPO.
However, if you haven’t opened a Demat account yet, you can do so on Bajaj Markets. In addition, on the platform, you can browse a variety of market-related investment tools to further diversify your portfolio.