IPO-the profit earning opportunity for investors is an exciting space for any type of investor to earn money in the share market. However, many of us miss out on this opportunity due to a lack of awareness of IPO apply time.
Any company desiring to go public offering some ownership to the retail investors has the motive to raise funds that can further be used for its growth and other corporate functions.
First of all, when a company applies for an IPO in SEBI, a red herring prospectus is formed which includes the company’s financial records along with its fundamentals to inform the investors of its sustainability and reliability.
After getting approval, the organizations reveal the IPO investment opening and closing dates; this is the time when the interested investors book their lots with the hope to get the allotment.
Usually, any IPO is open for about 3 to 21 days, during which bids are placed by the retail investors or in general as we may say, by the public.
IPO Apply Time in India
Want to apply for IPO, then it becomes important for you to know the time at which you can fill the application.
Now in India, since the exchanges operate from 10 AM to 5 PM so the maximum time set for IPO application stays the same.
Yet some banks do not accept the payments of subscriptions till this time, so the closing time is set around 3:00 pm.
To explain it further, we are aware of the general market open time which is 9:15 am to 3:30 pm. However, this timing varies in the case of IPOs (primary market).
In the Indian Capital Market, there are usually three sessions as discussed below:
This time starts at 9:00 am and ends at 9:45 am. During this time an investor can either place an order or modify it. They also get an option to cancel their orders. However, you’ll need to contact your broker to enable this service.
Next comes the Price discovery period.
Price discovery Period
The price discovery session is the one in which investors get to know about the listing price and accordingly know the listing gains. This is a 15-minute session starting from 9:45 AM to 10:00 AM.
This is the time when all the placed orders will be executed and thus the investors will grasp their profits which we call the listing gains.
Normal Trading Hours
As the name suggests, this is the general trading time which starts at 10:00 AM onwards. During this time obviously buying and selling of shares take place.
IPO Apply Time on the First day
The day on which the IPO becomes available for application is the day when there is huge online traffic of investors.
This generally leads to the failure of the application.
Thus, it is important for you to stay updated with the market timings at which IPO remains open for subscription.
Well as we talk about IPO apply time, any interested investor can apply for the lot between the opening and closing date. While the time for subscription starts at 10 am on the first day.
IPO Apply Time on Last Day
The end time for application varies from broker to broker. For many, the closing time is 5:00 pm on the last day, while for others it is 4:00 pm.
Not just that, may stockbrokers have 4:30 pm as their closing time of application.
Make sure you follow the time rule to subscribe for the IPO of your choice and reap the opportunity to earn listing gains.
IPO Apply Time ASBA
While we are talking about IPO, it is worth noting the only method to apply for an IPO is through ASBA which is nothing but the Application Supported by Blocked Amount.
Here is the complete detail of the ASBA process:
- First login to your Demat account
- Go to the IPO section
- From the list of new or open IPOs, choose your favorite
- After checking the details such as IPO price, issue price, and OFS, click on the IPO to see the IPO application
- Enter the details to place your bids such as quantity, price, and most importantly valid UPI Id.
- Confirm your order and finally wait for the allotment date as announced by the company.
And to apply for the IPO through this method, an investor needs to undergo the process of demat account opening using which he or she can place their bids between 10:00 am to 5:00 pm.
However, it is always recommended to apply for an IPO in the first half of the day to avoid any application rejections or technical glitches.
In this also comes the UPI transaction method. While applying for an IPO, UPI has proven to be the easiest and secure way to make any sort of transaction or payment.
So you see, timing is really crucial if as an investor you wish to get the lot. It is always recommended to apply for the IPO within the first two days.
There are higher chances of network glitches in the last hours of application and thus many of us may miss out on an opportunity of earning greater profits.
If you want to apply for IPOs, open a demat account today!