How to apply for an IPO?

Deepika Chelani
Updated: 15 Dec 2021, 12:48 PM IST
TL;DR.

IPOs are often launched through a fixed-price or book-building approach. An investor can apply for an IPO via any of the options available — UPI, ASBA and offline.

An investor can apply for an IPO by one of three methods, depending on their comfort and familiarity: UPI, ASBA, or an offline approach.

An investor can apply for an IPO by one of three methods, depending on their comfort and familiarity: UPI, ASBA, or an offline approach.

Initial Public Offering (IPO) is the process of conversion of a privately held organisation to public organisation through the selling of securities. The IPOs are generally offered through a fixed price process or book building method.

To be able to apply easily for an IPO, the investors need to have the following three accounts.

Bank account- The amount of the shares of IPO are paid from the bank account.

Demat account- The shares are kept in the digital form in a demat account.

Trading account- A trading account can be opened via a brokerage firm and is necessary to apply online for an IPO.

How to apply Through UPI?

  1. Open your trading account.
  2. Select the IPO you wish to apply for.
  3. Specify the number of shares you wish to buy.
  4. Mention the price at which you wish to buy the shares.
  5. Fill the application form carefully as asked.
  6. Allow the request to block the funds in your bank account.
  7. Your application is submitted.

How to apply Through ASBA facility?

Application Supported by Blocked Amounts or ASBA facility allows the investor to block the amount mentioned by him in the application without actually withdrawing it. This facility can be availed generally through all the banks. Here are the following steps:

  1. Open your bank account online through net banking.
  2. Choose the IPO you wish to apply for from the list of available IPOs.
  3. Specify the number of shares you wish to buy.
  4. Mention the price at which you wish to buy the shares.
  5. Enter other necessary details. Some details such as PAN number will be prefilled and cannot be edited.
  6. Allow the request to block the funds in your bank account.
  7. Your application is submitted.

How to Apply Offline?

  1. Collect the application form from your broker or it can be downloaded from the NSE website.
  2. Fill all the necessary details including the price and the number of shares you want to bid for.
  3. Submit the duly filled application form to your bank.

So, an investor can apply for an IPO via any of the three options available based on their convenience and familiarity: UPI or ASBA or offline process.

 

First Published: 15 Dec 2021, 12:48 PM IST
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