PB Fintech Limited, Sigachi Industries Limited, SJS Enterprises Limited, and many more!
These names will be familiar to you, as they have been in the news recently. Many of us have already invested our money in these companies. However, many of us are still not aware of IPO and how to apply for an IPO.
Hence, we are here to briefly discuss IPO and how you can apply for IPO online. Additionally, we have listed some points regarding IPO towards the end of this article.
When we hear about IPO, the first and foremost question is who does not like IPO? We agree that most investors in the stock market are readily investing in IPO. The enthusiasm in applying for a new IPO in India is similar to a one-day cricket match.
What is IPO? What is ASBA? How to apply for IPO online? Points to be considered for applying IPO
Our attraction is the final point. But before we list the points, let us run through the initial points.
What is IPO?
Do you invest in the stock market?
Even if you are not an investor, you might have read in a newspaper that a certain company is going public now. Have you ever thought, what does going public mean?
If we have to define it, going public means a privately held company raises the capital by issuing shares for the first time in the stock market.
A privately held company has very few stakeholders as per the rule. If they wish to raise capital by selling their shares to the public, they need to go from a privately held company to a public limited company.
Hence, these companies bring the first offering of their shares called IPO, also called Initial Public Offering.
The next question that arises is how to apply for IPO? Is it possible to apply for IPO online?
The answer to your question of whether you can apply it online or not is Yes. You have to link your bank account that provides the facility of ASBA.
What is ASBA?
Application Supported by Blocked Amount (ASBA) is the most efficient way to apply for IPO. Using ASBA, when you invest in IPO, the funds in your bank account are blocked for the IPO.
If you get an allotment, the amount gets debited from your bank account. If you are not allotted the shares, the amount gets released.
We would like to mention that SEBI has made ASBA mandatory if you wish to apply for IPOs.
How to apply for IPO?
If you wish to apply for an IPO, here are the list of account you must have in prior.
1.Demat Account: A Demat account is needed to electronically hold your stocks and securities.
2.Trading Account: A Trading account is required to buy and sell your stocks and securities.
3.Bank Account: A Bank account is necessary to block the funds for IPO.
You have the facility to open a Demat account from any of the Depository Participants registered with SEBI.
Here are the steps to apply for IPO online with Axis Direct
Step 1: You need to first log in to your trading account. You need to select the desired company (issue) from the current IPO section.
Step 2: You need to select the category you wish to apply for, enter the number of lots and the bidding price for the stock, and click on submit.
Step 3: As soon as you click on submit, the required amount will be blocked in your bank account for IPO.
Step 4: Once the shares are allocated, the required amount is deducted from your bank account. Additionally, the shares will be credited to your Demat account, and the bank will unblock the remaining amount to the extent of shares.
Step 2: Click on Place Order and then click on IPO.
Step 3: Click on Apply to bid for the IPO you wish to apply for
Dedicated Calling Facility | IVR:
Step 1: Call on 022 - 61480808/41508080
Step 2: When calling from your registered number, press 1 and then press 3
Step 3: Follow the instructions communicated over the call
Note: If you do not have an Axis Bank account, you can apply for an IPO through net banking of your existing bank account.
If you wish to invest in IPO with a paperless and hassle-free procedure, click here.
Points to be considered while applying in IPO
If you are a retail investor and the IPO is oversubscribed, you can apply for the allotment using multiple accounts, increasing your chances of allotment. Instead of bidding at a lower price, bidding at a higher price (cut off) is suggested. This activity will determine that you are ready to buy the stock at the decided price.
Before you ever invest in IPO, you must learn about your investing company and read the prospectus. The topics we covered in this article will hopefully help you invest in the right IPO, and it will give you the necessary guidance while you apply for IPOs online.
Companies that are launching their IPOs will create a buzz in the market. Remember, you must not invest in an IPO without having a perfect idea about the company’s business and financials. Additionally, you must learn the entire process of applying for IPO to avoid any mistakes and getting rejected.
We hope you will be happy investing in the upcoming IPOs.
Frequently Asked Questions
Q: Is it possible to apply for IPO online?
A: Yes, you can apply for IPO online. But, you cannot do it without the help of a bank account.
Q: What are the requirements to apply for IPO online?
A: You need a Demat Account, Valid PAN Card, Trading Account, and a Bank Account.
Q: Can we buy IPO without a Demat account?
Q: Can I use another person’s UPI ID for the IPO application?
Axis Direct is a brand under which Axis Securities Limited offers its retail broking and investment services. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This information is only for consumption by the client and such material should not be redistributed.Disclaimer & Statutory Information