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How to Apply for IPO Online?

How to Apply for IPO Online

Did you get a chance to get drenched in the rain of IPO this year? If yes, then you know exactly what the whole excitement is about! A lot of companies go public with regards to different goals, and for any investor to be a part of it, it is important to know how to apply for IPO online.

Before that let’s understand IPO meaning by beginning with the IPO full form.

As per the full form, it is Initial Public Offerings, where the companies raise the fund by getting listed to the major stock exchanges, NSE and BSE.

The whole process involves a lengthy process and on approval from SEBI, the investors can easily make a profit out of it by applying using the trading platform.

The application process for an IPO investment involves an investor placing bids according to the price band prescribed by the company. On successful selection, the IPO allotment is processed and thus an investor can reap the benefits.

You can apply for an IPO either offline by downloading the ASBA e-form from the NSE website, filling it and then submitting it to your stockbroker or bank. This can be a cumbersome process for some, therefore we will talk about how to apply for IPO online in this article.

How to Apply for IPO Online India?

Digitalization has led to increased dependency on online platforms. Not only is it convenient and time-saving but also has a higher success rate. So, why shouldn’t an investor have the benefit of applying for an IPO online?

Furthermore, the companies that are raising money come to the public with their financial books opened. With this transparency in place, the issues of Is IPO safe or not, do not stay in the context either.

Almost all the stockbrokers now allow interested investors to apply for an IPO online through their various trading platforms. This increases the convenience several times.

There are some basic requirements when you are applying for an IPO. The list is given as follows.

  • The most important thing is the presence of a demat account. It is not possible to apply for an IPO if you don’t have a demat account. Although, a few people may ask whether you can apply IPO without a Demat account.
  • You can easily open a free demat account with Choice and start applying for IPOs.
  • A valid PAN card.
  • An aadhar card is linked to your bank account.
  • A bank account is required to make the necessary payments.
  • A trading account.

Above all, ASBA is mandatory for IPO. It is nothing but the simplest and secured way to apply for any book-build IPO.

Let us begin by talking about these in detail.

How to Apply for IPO Through ASBA?


Although there is an offline method as well to apply for an IPO, the credibility of the online mode is several folds. ASBA is used as an acronym for Application Supported by Blocked Amount.

To simplify it, when you apply for an IPO the amount is blocked in your account till the time the IPO is allocated to you. In the cases, where an investor does not get the allotment, the blocked amount is refunded to the source account.

So, it is a safe method and does not involve the deduction of any amount till the time the product (IPO) is not allotted to an investor. Let us have a look at ASBA process.

  • Log in to your net banking portal or the trading platform of your stockbroker using your credentials. (The credentials are generated at the time of opening of demat account with your respective stockbroker)
  • You will now see an online IPO section. Click on it.
  • A list of all the open IPOs will appear in front of you. Now carefully analyze and choose the IPO that you want to apply for.
  • Another window will open. Here you will have to add details like quantity (number of lots), price, and category.
  • Click on the desired mode of payment and click on submit.

Once your application is submitted successfully, the desired amount will be blocked in your bank account. It will be deducted automatically if you are allotted the IPO and the amount will be unblocked and refunded if not.

The amount that is blocked cannot be used till the allotment process is completed. You can check IPO allotment status online on the NSE, BSE or LinkIn Time website.

Although there are some things that an investor should keep in mind before applying for an IPO through ASBA.

  • The bank that is used for the application process should be included and approved by SEBI on the ASBA list.
  • The maximum amount that can be used for the application is ₹2 lakhs.
  • The amount is not getting deducted, it is just blocked and the bank transacts on the behalf of the investor.

Now, you can transact this amount from your bank using either internet banking or UPI.

Other than this to subscribe for a particular IPO, it is important to check the IPO apply time to avoid any last-minute rush.

How to Apply for IPO through UPI?


From buying vegetables to making big purchases, we are quite dependent on the UPI method these days. Where on one hand, ASBA is a mechanism on which an IPO application usually works, UPI is a method that you use for making the payments.

You can apply for an IPO through UPI following the given steps.

  • The first requirement is to download a UPI app and create a UPI ID.
  • When you select the IPO that you want to apply for, there will be an option in the buying window to enter your UPI ID.
  • Enter your UPI ID in the desired slot and click on submit.
  • After the successful completion of the request, you will get a request on your UPI mobile application for blocking the amount.
  • Click on approve and your process will be completed.

The amount will be blocked in your account till the completion of the allotment process.

Conclusion

If you were wondering how to apply for an IPO online, then the answer lies in the simple steps given above.

The online method is safe, easy, time-saving, and a reliable method to apply for an IPO. There is no risk of your money getting used unnecessarily even without the allotment.

So, if you are also looking for the sweet gift of the listing gains, apply for an IPO and fulfil the dream.

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