How to Apply IPO Online in India?

Investing in IPOs online in India has become more accessible and convenient. Here are the steps to invest in an IPO online:

Prerequisites:

1. Demat Account: Ensure you have a Demat (Dematerialized) account. This account holds your securities electronically. You can open a Demat account with a SEBI-registered depository participant (DP).
2. Trading Account: You also need a trading account to participate in IPOs online. You can open a trading account with a SEBI-certified depository participant.
3. Bank Account: You must have a bank account for purchasing applied shares. The ASBA (Application Supported by Blocked Amounts) method is used for payments, where a specific amount is blocked in your account based on your share bid.

To apply for an IPO online through your broker, follow these steps:

1. Login or Register: If you already have an account with your broker, log in using your credentials. If not, register with your email and phone number to create an account.
2. Navigate to IPO Section: Once logged in, locate the IPO tab on the broker’s platform and navigate to the “Current IPO” section.
3. Select IPO: From the list of current IPOs, select the one you want to apply for.
4. Specify Bid Details: Enter the number of shares you want to bid for, usually in lot sizes. Make sure to check the minimum and maximum bid quantities specified in the IPO prospectus.
5. Choose Bid Price: Select the bid price for your shares. It’s advisable to choose the “cut-off price” to increase your chances of IPO allotment. The cut-off price allows the system to automatically bid at the final IPO price determined by the company.
6. Enter UPI ID: In the designated field, enter your UPI (Unified Payments Interface) ID. This is crucial as it’s used for payment processing and allotment.
7. Submit Application: Click the “Submit” button to confirm your IPO application.
8. Approve on UPI App: After submitting your application, you’ll receive a payment request on your UPI app (linked to the provided UPI ID). Open your UPI app, review the transaction details, and approve the payment.

Once your payment is approved, your IPO application is complete. The shares will be allotted based on the demand for the IPO, and if you receive an allotment, the shares will be credited to your Demat account.

Investing in an IPO online through internet banking is also a straightforward process. Here are the steps to do it:

1. Log in to Internet Banking: Start by logging in to your internet banking account using your credentials.
2. Access ASBA Tab: Look for the ASBA (Application Supported by Blocked Amount) tab or section within your internet banking account. Click on it to access IPO application services.
3. Select ‘Apply IPO’: Within the ASBA section, choose the ‘Apply IPO’ option. You will see a list of available IPOs.
4. Choose the Desired IPO: Select the IPO you wish to apply for from the list of available options.
5. Enter Details: Provide the requested details, including your PAN (Permanent Account Number) and your name as per the PAN card.
6. Specify Bid Quantity and Price: Enter the bid quantity (the number of shares you want to apply for) and bid price. It’s advisable to choose the “cut-off price” to increase your chances of IPO allotment.
7. Submit Application: After filling in all the necessary information, click the “Submit” button to confirm your IPO application.

Once your application is submitted, your bank will block the specified amount in your account as part of the ASBA process. Shares will be allotted based on the demand for the IPO, and if you receive an allotment, the shares will be credited to your Demat account.

Investing in IPOs through internet banking provides a convenient and secure way to participate in new investment opportunities.

Advantages of Online IPO Application:

1. Convenience: Applying online is quick and convenient, saving you time and paperwork.
2. Automatic Allotment: If you receive an allotment, shares are automatically credited to your Demat account.
3. Easy Monitoring: You can easily track your share holdings online.

Investing in IPOs online provides a streamlined and efficient way to participate in new investment opportunities and potentially benefit from the growth of promising companies.

In summary

Investing in IPOs online in India has become more accessible and user-friendly due to technological advancements. To make the most of this investment opportunity, follow these steps:

1. Ensure you have a Demat account, a trading account, and a bank account.
2. Select the IPO you want to invest in and choose your bid quantity and price.
3. Apply for the IPO through your broker’s platform or internet banking, following the respective steps.
4. Review your application carefully and submit it.
5. Monitor the IPO allotment process and check your Demat account for the credited shares.
6. Conduct thorough research, assess risks, and seek advice from financial advisors if necessary.

By following these steps and staying informed, you can make informed investment decisions and potentially benefit from promising IPO opportunities. Happy investing!