Did you know 120 IPOs (Initial Public Offering) were listed in BSE in 2023?
IPOs have always been exciting for many investors as they offer an opportunity for long-term wealth creation at affordable entry points. Hence, you must track upcoming IPOs for potential wealth-building opportunities as a smart investor.
However, if you are still getting familiar with the IPO concept, you may find it challenging to navigate the process. This is where an expert SEBI-registered investment advisory firm can help you make informed decisions.
Continue reading the blog to learn more about IPOs and how you can apply for upcoming IPOs.
What is an IPO?
An IPO, or Initial Public Offering, is when a private company offers shares to the public for the first time. During an IPO, you have the opportunity to purchase shares of the company, become a part-owner, and access potential profit-sharing opportunities.
It is often seen as a significant milestone for a company as it transitions from privately held to publicly traded.
IPOs provide companies with access to capital for growth and expansion while allowing investors to potentially profit from the company’s success through buying and selling shares on the stock market.
How to Apply for an IPO?
Applying for an IPO can be done through two primary methods. Here are the listed ones
Via Broker
- Step 1: Select a reputable brokerage firm, preferably an SEBI-registered investment advisory firm, that offers IPO investment services. Do your research on different brokers to find one that offers investment opportunities in varied instruments and is renowned for delivering the best services.
- Step 2: If you don’t already have an account with the chosen broker, you will need to open one. It may involve providing personal information, verifying identity, and funding your account.
- Step 3: Watch for the IPOs available through your broker. They may have a list of upcoming IPOs with details such as the issue price, lot size, etc.
- Step 4: Once you have identified an IPO you want, place your order through your broker.
- Step 5: After submitting your application, monitor the status through your broker. They will provide updates on your application’s success and the number of shares allocated to you.
Via Internet Banking
- Step 1: Add your login credentials and log in to your Internet Banking account.
- Step 2: Select the Application Supported by Blocked Amount (ASBA) tab.
- Step 3: Choose the IPO from the IPO list by clicking the “Apply IPO” tab.
- Step 4 After entering your information (name, PAN, bid amount, and price), click the submit button.
- Step 5: Monitor the status of your application via your online banking interface. You will receive updates regarding the status of your application and the number of shares allotted.
What Accounts are Required to Apply for IPO
- Bank account: You must have a bank account linked to your demat account to transfer funds seamlessly during the IPO application process. Make sure that your bank account details are accurate and up to date.
- Demat account: A demat account is important for holding securities in electronic form. It acts as a repository for the shares you purchase during the IPO. Make sure your demat account is active and compliant with the IPO’s requirements.
- Trading account: A trading account allows you to buy and sell securities in the stock market. It is necessary to have a trading account for participating in the IPO, as you will place your bids through this account. Verify that your trading account is funded adequately to support your IPO application.
Conclusion
By following the steps in this blog, you will be well-prepared to navigate the IPO application process confidently.
To make informed selections, conduct thorough research, evaluate the company’s fundamentals, and consider consulting with a SEBI-registered investment advisory firm.
With careful planning and execution, you can capture prospective chances and participate in the upcoming IPOs.
