When a private company approaches people for investment in return for holding shares of the company, they are making an initial offering called an IPO, or initial public offering. The IPO price is determined by an investment bank hired by the going-public company. Buying shares in IPOs has gotten really easy thanks to online bids and online trading apps. You can either place your bids in the IPOs offline or through online methods. The benefit of the online IPO is that a lot of your data is auto-populated from your trading and demat accounts, thereby decreasing clerical efforts on your part. IPO applications can be submitted online using your UPI or trading/bank account.You can apply online using the Share India app or website.The stockbroker platform is the most convenient way to apply for an IPO online.
The Procedure to Apply for an IPO
To apply for an IPO application, applicants need to log into their demat account. The filing could be done using online apps or websites for filing IPO applications. All stockbrokers are supporting the filing of IPO applications using their platforms. Visit the website of an online trading app that provides an opportunity to apply for IPOs. The page “Select Offering” appears, and next to “Offering,” choose “Participate.” Fill in the essential details of your offer to participate in the IPO, and your order will be placed.
The IPO bid can be successfully placed once you have selected IPO options while you are logged in to your Demat account. Remember, having a trading account is optional in the case of an IPO; just the demat account is enough. If you get an allocation, shares will get posted in your account the morning of IPOs’ expected trading on the markets. For instance, if a company is raising money on the IPO market for the first time and receives a listing of shares, it is a new offering.
- The amount may be blocked on the trading or bank account once you complete the IPO online form.If your IPO application is accepted, then after allotment is completed, the amount will be withdrawn. Once an application is accepted, the IPO amount is blocked. After allotment, if there are no shares allocated, then the whole blocked amount is unblocked.
- You can only access the blocked amount, which is transferred to the company once they have allocated shares to you or is returned to you once the IPO is closed if shares are allocated to you. Once you have applied online for the IPO via UPI, the amount is locked to your bank account. The application for an IPO may be rejected if the individual applying is different from the person whose bank account is used for applying.
- The probability of an IPO cannot be increased. To apply for an IPO, you only need to exercise caution. By establishing many Demat accounts under the various names of your relatives and friends, you can also boost your chances of being selected for an IPO.
- There may be different lot sizes when you apply for an IPO. A “lot size” is the number of shares that you must purchase for the most recent IPO. There may be 10 to 15 shares in the lot. You cannot purchase a single share in an IPO. You must reserve one or more lots of shares.
- An IPO application can only be submitted once. However, you may combine several lots. Additionally, if it is determined that you have submitted several IPO applications, your IPO application will be denied.
Online IPO Application
- Login: On the Share India website or app, enter your email address and password.
- Choose IPOs: Choose the IPO area, then enter your desired price and quantity.
- Confirm the IPO allotment: Check the Share India site for the IPO allotment status following the IPO dates.
Investors have the opportunity to purchase shares in an initial public offering at a significantly reduced cost. There is a limitation, however: a specific company’s share price cannot be comparable. There is always a chance that the share’s value will decrease. Prior to making any investment decisions, it is vital to understand the firm and its prior performance.
To purchase stock from an IPO
- To purchase stock from an IPO, you must carry out the actions listed below.
- You must provide information like your bank account number, demat account number, and PAN card information.
- Add the share count and your investment amount.
- Wait for the IPO allocation, which will occur about 10 days after the IPOs close.