Saturday, May 18, 2024

How to Apply for an IPO Online & Offline


The initial public offering (IPO) is an important step for a company to make as it enters the public market. It refers to a process where by a private company issues its shares for the first time to the general public, thereby enabling investors become shareholders and partake in the development of the firm. Understanding how to apply for an IPO is critical whether you are already experienced in investing or just entering into the stock market for your first time so as to exploit any forthcoming opportunities. The application procedure for an IPO may be done online or offline, out of which each has got its own benefits and conveniences.

In this manual, we are going to go through all the steps that lead to applying for an IPO using both methods hence empowering you with knowledge prior making informed choices and probably securing yourself a stake in future big investment opportunity. For those looking for a simple and hassle free way of participating in IPOs, we will specifically look at how one can apply online for an IPO; thus enabling you diagnose technology trends and leverage modern financial platforms to invest.

Requirements To Apply For An IPO

If you intend on investing in IPO then here are things needed when applying online:

Demat Account: A Demat account is required to buy shares from an IPO. It takes after having a bank account where after buying stocks, they can be stored in therein.

Trading Account: Prior applying online for any IPO must have best trading account with well reputed SEBI certified Depository Participant.

UPI ID: You need this if you want to apply UPI ID online. Your existing UPI ID works or create new ID by linking your bank accounts.

Bank Account: This essential during application because when you purchase share your money of equal amount gets blocked with your bank until it’s allotted then debited.

Eligibility Criteria For Ipo Application

Before proceeding with online application for an IPO, you must meet some eligibility requirements. Here are a few of them:

They can be Qualified Institutional Buyers, Retail Individual Investors, Non-Institutional Buyers or Employees of IPO bringing company. These are the 4 types of approved investors who may invest in the IPOs.

Traded and Demat account with a recognized Indian DP

You should have PAN-Permanent Account Number.

The saving or current bank account is linked to the Demat amount.

Adequate money balance on your bank account.

Applying For An Ipo Online

There are two methods to apply IPO online as follows. So let’s go through each step involved in details:

Through Broker

Create an online account with any broker and log into it.

Go directly to the IPO tab then open the current IPO section and select that specific one from list provided there.

Enter bid price and lot size you want bid for; preferably placing it at cut-off rate or maximum price at upper end of price band for increasing chances of allotment.

Type your UPI ID and Click on submit button. You will approve this transaction through UPI app awaiting exchange approval on your bid.

This will trigger mandate notification to appear in your UPI app which means till then all those money will remain locked within your broker account.

Through Internet Banking

Use your login ID and password to enter into internet banking services.

Locate the tab that says Application Supported by Blocked Amount (ASBA).

Click on ‘Apply IPO’ and choose an IPO from the list of IPOs.

Enter your name, PAN, bid quantity and price then click submit. Please respect 2 pm as the deadline for submission of bids on the same day, whereas if you do it after 2 pm it will be accepted next day.

Applying for an IPO Offline

Visit your broker’s office and ask for an application form for an IPO.

Fill in the required details and complete the application form.

Hand over a cheque along with completed form to the broker.

Do not forget to take a receipt from them as well. If IPO amount is higher than Rs 50,000; attach PAN card copy with application form.

You may also give it directly to any ASBA participating bank related to this issue of IPOs

Benefits of Online IPO Application

Avoiding going to bank branches or broking offices saves much time.

Easier way of applying for an Initial Public Offering (IPO) through online platform only .

The money is in account where one earns interest until allotment is done.

It’s a transparent exercise where you have full control over all actions taken during allocation process

Online application process has been made easy hence saving time. You can either use online or offline means. Choose SEBI approved broker who can start your initial public offering application easily. Hence they are capable of assisting you in doing so under clear procedures. Thoroughly analyze before investing.


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