How to Apply for an IPO?

Initial public offerings are suited for investors wishing to get early entries in public companies. It is better to get shares at a reasonable rate in IPOs than waiting for them to hit the market. Investors in India can apply for new IPOs online and offline. You can submit your application while sipping coffee at your house and office. Read on to understand how to apply for an IPO in detail in this blog.

How to Apply for an IPO Online Via Religare?

You can find upcoming IPOs and invest timely with the help of Religare Broking. A trusted broker like Religare Broking can help find the top initial public offerings in India and submit applications. Here’s how to apply IPO online with Religare:

• You must open a demat account to apply for IPOs. A Demat account will help you store shares in electronic form during allotment.

• Religare Broking offers its customers access to online trading platforms. You can search for the latest offerings on the online trading platform.

• Select an IPO and click on the ‘Apply’ button. You must enter the lot size or the number of shares you want to purchase.

• You must select the bid price, which can be the cut-off price or higher.

• You must provide your UPI ID to proceed with your IPO application. You will benefit from the ASBA (Application Supported by Blocked Amount) facility. The amount for the number of shares applied will be blocked/reserved in your account. In case of non-allotment, the blocked amount will be freed.

• Wait for the allotment day to receive your shares.

Recommended Read: Apply IPO through ASBA

How to Apply for an IPO Via Internet Banking?

You can submit your application through the Internet banking application provided by trusted banks. You must have a savings account with a trusted bank in India to apply for such offerings. Here’s how to apply for an IPO online through internet banking:

• Log in to your account through the Internet banking platform. Provide your login credentials on the platform to open your account.

• Internet banking applications are also supported by the ASBA facility. Find the ASBA tab on the internet banking platform.

• You will see a list of the latest IPOs in India. You must select the one you prefer from the list.

• Select an IPO and initiate your application. You must provide several details, like lot size, bid price, and number of shares. You must also provide your PAN (Permanent Account Number) with the application.

• Submit your application, and the specified amount will be blocked in your bank account. In case of non-allotment, the blocked amount in your bank account will be freed.

• Wait for the allotment day. When shares are allotted, they are directly credited to your Demat account.

Must Read: How to Choose IPO

Eligibility Criteria for IPO Application

You must fulfil some conditions before applying for IPOs. Here are the conditions for applying:

• QIBs (Qualified Institutional Buyers), NIIs (Non-Institutional Buyers), retail investors, and employees are allowed to apply for IPOs. You must be one of them to apply for IPOs in India.

• You cannot apply for a new IPO without a Demat account in India. A Demat account is essential to secure the delivery of IPO shares on the allotment.

• PAN is necessary for applying to an IPO. You will also require a PAN when applying for Demat-cum-trading account in India. PAN is an essential KYC document for trading activities.

• Your bank account must be linked to the Demat-cum-trading account. Also, your bank account must have sufficient balance to apply for an IPO.

Conclusion

Investors must know how to apply for an IPO online. Applying online will save time for investors. You can also choose to visit your broker or bank and apply for an IPO offline. It is crucial to understand the ASBA facility before applying for a new IPO in India.

The ASBA facility allows you to block the specified amount in your bank account. The blocked amount will be freed when shares aren’t allotted in the IPO. You can open a Demat-cum-trading account with Religare Broking and find the latest IPOs. It is crucial to note that a Demat account is mandatory for storing the allotted shares in electronic form. Start applying for IPOs online!