How to apply for IPO in India: IPO is one of the coolest ways to raise funds for a particular company. If any company wants to expand their business or wants to repay their high-cost loans then IPO can be the best option for them.
IPO can be a very good option to make a profit if you are a knowledgeable investor. Not every IPO is worth investing in. You have to do extensive research before investing in it. Here is detailed information on “Things to Check before Applying for IPOs“
In this article, we will focus on “How to apply for IPO in India?”, “What is IPO exactly?”, and more.
What is IPO (Initial Public Offering)
The IPO(Initial Public Offering) is the process of transferring a private company into a public company. Smart investors make a good return by investing in IPO.
As we have seen before that not every IPO is worth investing in it. You can go with the fundamentals of the company and other important parameters then you can confidently apply for that particular IPO. You can get some idea about that IPO with some Gray market parameters.
If you want to apply for IPO then you can apply online. Either you can apply directly with your broker by UPI payment method or Online net banking that provides an ASBA facility.
Application-Supported by Blocked-Amount (ASBA) is a simple and easy methodology to apply for IPOs. If you make investments by ASBA, the funds are blocked in your account for the IPO.
If you get an allotment of a particular IPO then blocked fund automatically debit from your bank account. If you don’t get an IPO allotment then the blocked fund is automatically released in your bank account.
Most of the Nationalised banks like SBI, HDFC Bank, ICICI Bank, and more. Here is a complete list of ADBA supported banks.
ASBA Eligibility Criteria
- The investor must be a resident of India.
- You should have a valid PAN number, Demat, and trading account.
- You should have sufficient funds in your bank account.
- Should bid on cut-off price.
- Should be agreed on terms and conditions.
How to apply for IPO through ASBA in India?
Step 1: Log in to your online net-banking account. Here we will take the example of SBI Netbanking.
Step 2: Then click on e-Services. After that click on ” Demat Services and ASBA”
Step 3: Then Click on IPO(Equity/Rights)
Step 4: Click on Accept.
- Choose the IPO for which you wish to apply
- Enter the number 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
How to apply for IPO through UPI in India?
How to apply for IPO in Zerodha?
Step 1: Log in to the Kite Zerodha Application. If you don’t have an account then you can open it from here.
Step 2: Go to Account Section
Step 3: Click on IPO. Select IPO to which you want to subscribe. Then click on Bid.
Step 4: Fill in the required details, and then click on Submit button.
Step 5: After completing all those requirements. You will receive an amount blocking request on your UPI app. Here you can use any UPI app for an IPO subscription.
To receive an “account blocking” request from a broker might take more time in some cases. So don’t worry keep patience.
How to apply for IPO in UPSTOX?
What is GMP in IPO, What is Kostak in IPO, Grey Market Premium?
Things to Check before Applying for IPOs. For Short and Long Term Both.
How to Increase Chances of IPO Allotment?
It is very easy to apply for any new IPO. You can apply with the help of UPI Payment or online net banking easily. To increase the probability of getting an allotment to try to apply with multiple Demat accounts. Follow the above steps, if you are lucky you will get a decent amount of allotment.