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.

Accounts Required to Apply for IPO Online

To apply for an IPO online, you typically need the following accounts:

  • Bank Account

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.

  • Trading Account

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.

  • Demat Account

A Demat account is essential for holding securities in electronic form. When you purchase IPO shares, they're directly credited to your Demat account.

  • UPI ID

Many IPO applications in India are facilitated via the UPI payment system. You will need a UPI ID for making payments during this process.

How to Apply for an IPO Online

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: 

  • Through Internet Banking 

Here is how to apply for an IPO online if you have an active internet banking account:

  1. Visit your bank’s official website and log into your account 

  2. Navigate to the ‘Application Supported by Blocked Amounts (ASBA)’ option

  3. Look for an option that allows you to apply for an IPO  

  4. Fill out any necessary fields, like PAN details and your name   

  5. Enter the lot size you wish to bid as well as the price 

  6. 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.   

  • Through a Broker

Here is how to apply for IPOs through a SEBI-authorised broker: 

  1. Visit the broker’s official website and log in to your account (or register if you don't have one)

  2. Search for the ‘IPO’ tab on the dashboard and click on it

  3. Choose the IPO in which you wish to invest from the list of available IPOs

  4. Enter the bid quantity and price for each security, and submit your application

  5. 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.

 

ITR File Kiya Kya?

File online, track refund updates, calculate deductions, and more.
Tax image

How to Apply for IPOs Offline

Here are some steps you may have to follow while applying for an IPO offline: 

  1. Visit your nearest bank branch or an office of a brokerage firm

  2. Fill out the ASBA application form

  3. Provide your KYC details and other requested details 

  4. Submit the application

 

In the offline process, the amount gets blocked and will get deducted if the shares are allotted to you.

Eligibility Requirements for an IPO Application

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

Benefits of Applying for IPOs Online

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.

Trade at flat Rs. 20/order | Open free* Demat & Trading Account Now Open Account
Home
active_tab
Loan Offer
active_tab
Download App
active_tab
CIBIL Score
active_tab