Initial Public Offering or IPO is the process of making a private company public. A private company’s owner or stakeholder owns 100% of the company’s shares. When the company decides to go public, they approach the NSE or BSE to list it. Along with this, they make their shares available for investors. These investors invest in the company’s IPO during their subscription period and wait for IPO listings. If the company’s listing is Premium the investors make a profit, and vice versa.
An IPO is one of the fastest ways to grow investors’ capital. Initially, people would blindly trust IPOs to invest their hard-earned money, and gain profit in return. However, that changed after LIC and many other companies’ IPO failed miserably. Investors are keen on learning about company history, capital and overall turnover before investing in a company’s IPO. Read the article till the end if you want to invest in an upcoming IPOand want to know How to apply for IPO?
How to apply for IPO?
There are two ways you can apply for an IPO that is through Angel One or Internet Banking.
If you want to apply for an IPO through a broker, login into your account or make one if you don’t have an online broker account. Locate the IPO tab and select the current IPO section. After selecting the IPO name from the list, enter the number of stocks you want to bid for and also select the bid price. After making an online payment, wait for the exchange to approve your bid. The amount invested will be blocked till the IPO is closed.
Companies inform Brokerage firms before the IPO who then inform their investors. Most brokerage firms allow only qualified investors to participate in an IPO who have a certain amount of money in their accounts.
If you want to apply for an IPO through Internet Banking, log in to your account with your details. Search for the Application Supported by the Blocked amount. Select the IPO from the list and apply. Follow the similar method mentioned above to buy the number of stocks you want and make an online payment.
How to Apply for IPO offline?
Those investors who are not techno-savvy can apply for an IPO offline. They can visit a broking firm or bank and submit an IPO application. It is essential to fill out the ASBA application and provide KYC details. After this process, an investor’s funds will be blocked, and the invested amount will be debited after shares are allotted.
Here are a few Upcoming IPO investors are keen on investing in:
Summing it up
Booming companies go public regularly, but as an investor, you need to do your research before applying for IPO. A well-informed investor risking his/her money in the IPO market is more likely to gain profit, than an ill-informed investor. Choose SEBI-authorised brokers for your IPO journey that will make your application process seamless.