How to Apply for an IPO Online ?

 BY: Pankaj Bansal, Founder at NewsPatrolling.com 

Applying for an Initial Public Offering (IPO) online in India is a straightforward process. Here's a step-by-step guide:

1. Open a Demat Account and Trading Account

• To apply for an IPO, you need a Demat account to hold the shares electronically and a trading account to place orders.
• You can open these accounts with any stockbroker registered with the Securities and Exchange Board of India (SEBI).

2. Ensure Sufficient Funds in Your Bank Account

• Ensure that your bank account linked to the Demat account has sufficient funds to cover the application amount.

3. Login to Your Trading Platform or Net Banking Portal

• Log in to your broker's trading platform or your bank's net banking portal.

4. Navigate to the IPO Section

• In the trading platform or bank portal, find the "IPO" or "Investments" section. This section lists the ongoing IPOs.

5. Select the IPO You Want to Apply For

• Choose the IPO you want to invest in from the list.

6. Fill in the IPO Application Form

• Enter the number of shares you wish to apply for and the bid price. You can choose to apply at the "Cut-off Price" or a specific price within the price band.

7. Enter UPI ID or Use ASBA (Application Supported by Blocked Amount)

• UPI ID: If you're using UPI, enter your UPI ID. You'll receive a mandate request on your UPI app to block the application amount.
• ASBA: Alternatively, you can use the ASBA process via your bank, which allows the amount to be blocked in your account until the IPO allotment is done.

8. Verify and Confirm the Application

• Double-check the details and confirm your application.

9. Receive a Confirmation

• After submitting, you will receive a confirmation of the application. If using UPI, you must approve the payment mandate to block the funds.

10. Allotment and Refund

• If you are allotted shares, they will be credited to your Demat account. If not, the blocked amount will be released or refunded.

Additional Tips:

• Keep Track of IPO Dates: Be aware of the opening and closing dates of the IPO application.
• Read the Prospectus: Go through the company's prospectus to understand the financials, risks, and growth potential.
• Check Broker Charges: Some brokers may charge a nominal fee for IPO applications.

By following these steps, you can apply for an IPO online seamlessly.