What is an Initial Public Offering (IPO)
The method of Initial Public Offering (IPO) transforms a privately-held firm right into a public company. This course of additionally creates a chance for good investors to earn a nice return on their investments.
Investing in IPOs generally is a good move in case you are a knowledgeable investor. However not each upcoming IPO is a superb alternative. Advantages and risks go hand-in-hand. Earlier than you be part of the bandwagon, it is very important to perceive the fundamentals.
Though you possibly can apply for IPOs on-line, You can apply for an IPO directly with your broker by UPI payment method or with a bank that provides ASBA facility.
Application-Supported by Blocked-Amount (ASBA) is a simple and environmentally friendly method to apply for IPOs. If you make investments by ASBA, the funds are blocked in your account for the IPO. The cash leaves your bank-account solely in case you are allotted shares within the IPO. Throughout this time, you may also earn curiosity about these funds.
It’s also value mentioning that the SEBI has made ASBA necessary for IPO bidding.
How to apply for IPO online?
- Log-in to your on-line net-banking account
- Within the part of the investment, click on on the IPO/e-IPO-option
- Fill out your depository particulars and bank account-particulars to finish the verification method
- After this, you’re led to a display screen titled ‘Invest in IPO’
- Choose the IPO for which you wish to apply
- Enter the amount of shares and the ‘bid value’
- Read all the rules and regulation’ doc earlier than you place your bid
- Affirm and place your order by clicking on ‘Apply Now’
It is very easy to apply for any new IPO. You can apply with the help of UPI Payment or online net banking easily. For increase probability of getting allotment try to apply with multiple demat account. Follow above steps, if you are lucky you will get decent amount of allotment.