How to Apply for IPO Online or Offline in India?

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Investing in an Initial Public Offering (IPO) is an exciting opportunity to tap into a company's growth from the outset. However, many investors often get confused about what is ipo and How to Apply for IPO correctly. You can apply for an IPO in India through two ways, either online or offline. The online process offers two convenient payment modes: UPI & Net Banking. Regardless of ways you apply, having a Demat account is a mandatory requirement for IPO application. This guide explains the step-by-step process to apply for an IPO in detail.

How to Apply for IPO Online in India?

Step 1 : Open a Demat account with your broker, or if you already have one, ensure your Demat account is active and linked to your PAN and bank account for easy transactions.

Step 2 : Download or open your broker's trading platform and navigate to the IPO section.

Step 3 : Browse the list of upcoming IPOs and click on the IPO name you want to invest in to check the necessary IPO details.

Step 4 : Input the number of lots you want to apply for and select a price within the band. You can even opt for a “cut-off price” for better allotment results.

Step 5 : Now, there are two payment modes through which you can apply for an IPO:

How to Apply for IPO Using UPI?

In recent times, UPI has become the most common method to apply for an IPO directly because of its simplicity and mobile-friendly interface.

If you choose UPI payment mode, make sure you enter a valid UPI ID while applying for an IPO.
Ensure your UPI ID is active, linked to your bank account, and has a sufficient balance.
Once you submit your application, open your UPI app and validate the payment mandate for the application amount before the deadline. The amount will be blocked from your account.

Note : If you do not validate the mandate in time, your application will not be processed, leading to rejection.

How to Apply for IPO through Net Banking?

If you want to know How to Apply for an IPO without UPI, then net banking is the answer. This method uses an ASBA (Application Supported by Blocked Amount) procedure to invest in an IPO without any hassle.

To apply through net banking process, you'll require to:

Have a bank account with an ASBA facility to ensure smooth transactions.
Here, you'll have to log in to your net banking account via your bank's portal and look for the dedicated IPO section.
Similar to the above mentioned steps, check out the IPO list and select the one you want to invest in (not before doing a thorough review).
Fill the application form by inputting details like the number of shares you want to invest in, the price band, your PAN number, and Demat account number.
Proofread and apply. Once submitted, the said amount will be directly blocked from your bank account until the allotment.

Note : The amount will be debited if you are allotted the shares. However, you'll receive the amount back if not allotted.

How to Apply for IPO Offline in India?

Now that we have explored all the online modes, let's understand How to Apply for an IPO offline :

Step 1 : Collect the IPO application form physically from your bank or broker, or download it from their website and print it.

Step 2 : Ensure you fill out the necessary details correctly to avoid rejections -

Personal Information (Name, PAN number, Contact number)
Demat account details (DP ID or Client ID)
Bank account details
Bidding quantity and price

Step 3 : Physically submit the form to the concerned entity, or you can send your application via courier. The entity will verify details and process the application further.

Step 4 : Once processed, the amount will be blocked from your bank account. Track the application status till the allotment results.

Important Note : Multiple applications for an IPO from the same PAN across different family members can result in rejection.

Also Read: IPO Apply Time

Eligibility Criteria for Investing in an IPO

Before applying for an IPO in India, you must meet certain eligibility requirements based on your investment category:

1) Retail Individual Investors

Applicants: Indian residents, NRI (Non-resident Indians), and HUFs (Hindu Undivided Families) investing less than ₹2 lakh.
Investment Limit: Up to ₹2 lakh in a single IPO.

2) HNI / NII

Applicants : Indian residents, NRI (Non-resident Indians), and HUFs (Hindu Undivided Families) investing more than ₹2 lakh.
Investment Limit : This category is further split into:
Small NII (sNII) : Applications above ₹2 lakh up to ₹10 lakh, with one-third of the NII quota reserved.
Big NII (bNII) : Applications above ₹10 lakh, with two-thirds of the NII quota reserved.

3) Qualified Institutional Buyer (QIB)

Applicants : Institutions like mutual funds, commercial banks, insurance companies, pension funds, and foreign portfolio investors (FPIs).Investment Limit: No upper limit, but must comply with SEBI guidelines.

Requirements for IPO Application

To apply for an IPO in India, you'll generally require the following details:

PAN number (mandatory requirement for all investors)
Demat Account (mandatory requirement for all investors)
Bank account with ASBA and UPI facilities
Identity Proof for KYC if required (Aadhar Card, Passport or Driving License)

Timeline From Application to Allotment

Here's the usual timeline for an IPO process:

Days 1-3 : This is an IPO bidding window. Investors who are interested can submit their application in this window.

T+1 : The basis of allotment is finalised. Here, the registrar determines and decides how many shares each applicant will receive.

T+2 : Funds are debited or credited. Here, the blocked fund will be released for unsuccessful applicants. On the contrary, blocked funds will be debited for those with allotted shares.

T+3 : Here is the listing day. The shares will be listed on the stock exchange and available for trading in the secondary market.

Final Thoughts

Applying for an IPO in India becomes easier once you understand the process and methods of investing clearly. It doesn't matter which method you choose - online or offline, the important thing is to conduct thorough research, plan carefully, complete KYC, and make an informed investment decision.

Disclaimer : IPOs are an exciting opportunity for beginners. However, it requires careful planning. Always do your research or reach out to an expert if you have any doubts before investing or applying for an IPO.