Steps to Apply in an IPO?

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Steps to Apply in an IPO?

How to apply An IPO online is very relevant question today. These days whenever a new company goes public, the excitement is huge. In fact, the IPO of the companies gets subscribed a multiple number of times. Furthermore, the financial institutions also participate aggressively for an IPO. The reason why IPOs are popular is their ability to deliver instant gains on the listing day. Undoubtedly, IPOs have emerged as true profit generators in the past few years.

Overview On Apply IPO Online

This brings us back to an important question of “ how to apply ”. A retail investor can apply for an IPO application through two ways. The first mode is by filling an IPO application in physical form and submitting it. The second mode is applying the IPO via online mode. In fact, out of the two modes, the online mode is very popular these days. Therefore, in this article, we shall understand here apply IPO online through banks and different brokerage houses.

Let us have a look at ways to file an IPO online through some of the popular banks and brokerages.

  • Buy IPO Through ASBA

ABSA means “Application Supported by Blocked Amount”. ABSA is the most popular mode for filling online application. All the banks that support filling of IPO application through net banking follow the guidelines of ASBA.  ASBA application authorizes the bank to block money equivalent to application amount. If the bid of the applicant is rejected, the applicant receives the credit amount in his bank account. The applicant can manually fill the ASBA form and submit it to his nearest bank account. In fact, care should be taken that right details are filled in the form, the else application shall be rejected.

To file an IPO application online using HDFC Bank, the user needs to login to his net banking account. On the left side of the menu, click the “Request” option and further click “IPO Application”. Consequently, a new page will open displaying the current IPOs. Select the IPO to be filled. Enter the basic details like depository number, depository ID or name, etc. Place and confirm your IPO order after accepting the terms and conditioning. The fund shall remain blocked in the bank account. The IPO application amount shall be debited only when shares are allotted. In addition, this service is free and interest on blocked funds is available.

To file an IPO application using ICICI Bank, the applicant needs to login to his net banking account. In the menu, the user will find the “Investment” option. By selecting the option, the user can fill the IPO application. Once the online IPO application form fill up is done, the amount shall be blocked in the bank account. In fact, the same amount will be credited to the account in case shares are not allotted towards the application. 

Firstly the user needs to log in to his net banking portal. Out of the many options on the left side, “Demat and ASBA Services” needs to be selected.  In the next step “Apply for IPO” is to be selected. Apart from the application details, some personal details also need to be filled. Next, you need to check the details filled and submit the application. Eventually, the user will receive the message that his bid for the IPO has been placed successfully.

Direct application to IPO cannot be filled through Zerodha. Still, there is an option through which one can apply for the IPO. In fact, it can be done by submitting the IPO application using net banking. The user can also manually submit the ASBA application to the bank. However, care must be taken in both the cases while filling the depository details.

Angel Broking is one of the leading brokerage firms of India. To file an IPO application through angel broking, one needs to have a demat account with them. The IPO bid can be successfully placed after selecting the IPO option by logging into the demat account. Just fill the basic details for the bid and the order shall be placed.

The above banks and brokerage firms are among the most popular stock trading and IPO filling platforms. However, the applicant can also submit a physical application with the broker. The applicant just needs to visit his broker and fill in the details in the IPO form. The payment must be made by cheque. It is one of the oldest and traditional methods of filing an IPO allocation. However, the online mode offers ease and saves time. Also with digitization online filling is used more in comparison to the offline filling.

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