IPOs have always kept the traders on the hook as it has the potential of generating great returns. If you are an investor, looking for the procedure of how to apply for an IPO, then you have reached the right place.
There are various methods that you can use to apply for an IPO and these can be segregated as online and offline methods.
The first thing that you have to keep in mind before applying for an IPO is that you should be having a demat account. You can easily open your demat account with Choice and start investing in IPOs.
Before diving into the step-by-step guide for the online application process, it is important that we have a look at who all can apply for an IPO.
Who Can Apply For An IPO?
Whenever you are thinking of applying for an IPO or invest in IPO, it is essential that you check the eligibility criteria. If you fulfil the following conditions, then you are eligible to apply for an IPO.
- You as a retail investor should be a resident of India.
- You should also have a demat account as it is not possible to apply for an IPO without it.
- An ASBA approved bank account
- PAN card
These are the general requirements to check before you apply for an IPO. If you still don’t have a demat account, you can easily open one with Choice. Now that we have had a look at the requirements, let us have a look at the application procedure.
Would you not enjoy it if you were given a chance to do everything conveniently at your own ease? Similar is the case with the IPO application. Gone are the days when people used to hustle for it, now you can easily do it online in a few steps.
There are certain things that you should keep in mind before applying for an IPO online. The checklist for the same is given below.
- A demat account so that you can effectively receive the shares and trade them.
- A trading account.
- A bank account to process and complete all the payments.
- For opening a demat account, you need an aadhar card linked to your mobile number and a PAN card.
Once you have fulfilled all these requirements, you will be able to apply for the IPO online.
The whole process of IPO application is driven by a single mechanism or technique that is called ASBA. ASBA is an application supported by a blocked amount. It is an easy and less cumbersome process that is helpful in eliminating the age-old procedures as well.
The bottom line of this technique is that the amount is not debited from your account till the time the IPO is not alloted to you. The amount is only deducted from your account when the shares are allotted to the investor.
It is a simple and safe process as there is no risk of you losing money. The process of applying through ASBA is as follows.
- Log in to your net banking portal. You can also log in to your trading platform to have a smoother experience.
- Now click on the IPO application.
- You will see a window with all the IPOs.Select the IPO of your preference.
- On choosing the IPO, an application window will open.
- Fill in the details like quantity, category, and price and click on apply.
- On a successful application, that certain amount will be blocked in your bank account.
There are various payment methods that are used when you apply for an IPO, but the most used one is the UPI payment method. So, let us talk about that in detail.
As per SEBI guidelines, ASBA is mandatory for IPO.
How to Apply for IPO through UPI?
UPI payment is one of the most widely used methods for digital payments these days. Not only does it have a high success rate but it is also very convenient. You can apply for an IPO easily using the UPI mode of payment in the following simple steps.
- Download any UPI from Playstore or Appstore and create a valid UPI ID and password.
- Once you have created the same, you can log in to your trading platform to apply for the desired IPO.
- On the application window, when you fill in the desired fields, you will see an option to enter your UPI ID as well.
- Enter your UPI ID. On successful verification, you will receive a request for blocking your amount.
- Click on approve and your application will be successfully completed.
After the successful completion, that particular amount will be blocked in your bank account. If you are lucky and get the allotment of the IPO, the amount will be deducted from your bank account and if not, the amount will be unblocked and credited back to your account.
How to Apply for IPO Offline?
Online methods have made life convenient and less hectic, but the question here is, how to apply for IPO offline.
Yes, you can apply for an IPO offline as well. You just need to download an ASBA e-form from the NSE website. Let us first have a look at how you can do it.
- Go to the NSE website and register yourself as the new user by entering all the desired details.
- After successful registration, you can download the form 2 days before the application starts. Also, the registration is a one-time thing and after that, you can easily apply for multiple IPOs.
- You now have to fill in the form and submit it to your nearest bank or stockbroker branch.
- Submit it with a cheque of the desired amount.
On the successful completion of your application, that particular amount will be blocked in your bank account.
Wondering if you can apply for an IPO without a demat account? The answer is simple, you cannot. If you want to apply for an IPO, you need to open a demat account.
You can open a free demat account with Choice, in a few simple steps.
- Visit the website or download the Jiffy app.
- Fill in the required details.
- There are certain documents required to open a demat account. These documents are as follows,
- Aadhar card (linked with your mobile number)
- PAN card
- Income proof
- Cancelled cheque
- Passport size photograph
On the complete submission and verification of the documents, your account will be activated within 4 hours.
Once you open your demat account, you can easily apply for the IPO of your choice.
Can I Apply for IPO from two Demat Accounts?
People often wonder if you can apply for an IPO from two demat accounts as it increases the chances of the allotment. The answer is no, you cannot apply for the same IPO from two Demat accounts linked to the same PAN card.
If this happens then the IPO application will be automatically rejected. If someone wants to apply for an IPO multiple times, then the demat account should have different PAN cards linked.
For example, if everyone in your family has a demat account, you can apply for an IPO from two demat accounts.
IPO Application Charges
A lot of traders often get confused about the IPO application charges and perceive that they will have to pay hefty amounts to apply for the IPO.
But the best part is that there are NO application fees for IPO with Choice. You can easily log in to the platform, apply for IPO, and further enjoy the listing gains at absolutely no cost.
Last but not the least, it is important to check the application time for the particular IPO.
Unlike the usual market hours, the IPO application is available for subscription at 10 AM on the first day. Prior to this, it goes the normal pre-opening session and market session.
After this, one can apply for the IPO for three days between 10 AM to 5 PM.
Make sure you submit the application and check it status before it closes on the third day.
IPOs have the potential to reap great benefits if you analyze the IPO properly and invest. The application process is easy and convenient and you can easily do it from the ease of your house.
Further after application, you can check IPO allotment status by visiting the NSE or BSE website. Also, you can get the information in your trading app that usually redirects you to the Linkin Time website to update you about the subscription of IPO.
If you want to seamlessly apply for an IPO, you can open your demat account with Choice and start today!
- What is the best way to apply for an IPO?
There are various methods that you can use to apply for an IPO, but the best way to apply for an IPO is through ASBA. It is a safe and reliable method as the amount only gets blocked in your bank account and is not debited till the time you get the allotment of the IPO.
With this method, you don’t need to worry about concerns on Is IPO Safe or not either.
- Can I apply for IPO now?
You can only apply for an IPO on the days when it is available for the public. The timings usually remain from 10 am-5 pm.
- Can I apply for the same IPO twice?
NO, you cannot apply for the same IPO twice with a single PAN card. If done so, your application will be automatically rejected.