Initial Public Offering (IPO) FAQs:

What is Initial Public Offering (IPO)?

Initial Public Offer (IPO) is a process through which an unlisted Company can be listed on the stock exchange by offering its securities to the public in the primary market.

Which IPOs will start in this month or week?

IPOs like – to start this week.

Can we apply for IPO without demat account?

Can’t because as per SEBI rules individual investor must have demat account to apply for IPO.

Is it good to invest in IPO?

Yes, if you want to take high risk and high return in long term, then you can apply.

Who can Invest in IPO?

Investors are divided into three main categories:

1. Qualified Institutional Buyer (QIB)
QIB portion which comprises

• Mutual funds
• Domestic Financial Institutions: Banks, Financial Institutions and Insurance Companies
• Foreign Institutional Investors
• Others

2. Non Institutional Investors (NII)
NIIs comprise

• Corporates
• Individuals other than retail investors
• Others

3. Retail Individual Investors

How can one Apply in Upcoming IPOs Online?

The online process is a simplified one to apply for IPOs. Investors can apply from the website or mobile app of stockbrokers, using UPI as a payment option.

Log in to the console and enter required and UPI handle details before placing the bid. All IPO application is supported by ASBA or Application Supported by Blocked Amount, which allows the bank to block the amount for the bid value until the IPO.

What is the Process of Investing in an IPO Online?

1. Choose the IPO That you Want to Invest in

We generally know the latest IPO calendar of a particular year beforehand. Investing in an IPO requires research as we may not have a lot of historical data on the performance, management and other crucial fundamental factors. This is when we compare that company to a listed company. Hence, determining the IPO that you want to invest in is an essential first step. Every company that launches an IPO, shares a prospectus with the public offering details about the company’s business and future plans. Go through this prospectus thoroughly and research the company before making a decision.

2. Open the Required Accounts

You need the following three accounts to invest in a new IPO and trade them in the secondary market eventually:

Demat Account: This is where you store your shares in an electronic form.

Bank Account: A bank account is required to fund your share market transactions. However, a bank account can come in handy to apply for an IPO as well. Almost all net-banking platforms have the facility to apply for IPOs through the Application Supported by Blocked Amount (ASBA) facility.

Trading Account: Trading account is used to buy and sell shares. You can open a trading account with Upstox, Zerodha, AngelOne.

3. What happens after you Apply for an IPO?

The process is a little different. When you apply for a company’s IPO, regardless of any method of application, the aggregate amount gets blocked from your bank account. It will show up in your balance but will not be available for use. Once the allotment is finalized, if you have received the shares the amount will get debited from your account. If you have not received any shares in the IPO, the amount will be unblocked and will be available for use.

Important Note For Investor:

• Before applying in the IPO of any company, get complete information about the company and its IPO details.
• Company should not apply in IPO without seeing latest Grey Market Premium (GMP) and listing gain.

You can see how the initial public offering is applied from the demat account of different brokers by clicking on the name of the broker.

Upstox, Zerodha, AngelOne

To know more on IPO terms or to get expert answers to your specific questions on IPOs, Please visit:

All IPO FAQs

However, make sure to always read the prospectus carefully and run due diligence to weigh the pros and cons of the offer before investing in any IPO.

All IPO Watch 2023 | Upcoming IPO 2023 : Click Here

All Mainboard IPO List 2023 ( NSE BSE ) : Click Here

All SME IPO List 2023 (BSE SME, NSE) : Click Here

All IPO GMP Today : Click Here

Upcoming IPO 2023 in India | New IPO List 2023 : Click Here

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