How to Apply for an IPO Online & Offline?

What Is an IPO?

An Initial Public Offering (IPO) represents a change from a privately owned corporation to a publicly traded company. Private corporations are owned 100% by their founders, partners and early investors. Once a company goes public and is traded on a stock exchange some of its shares will be made available to the investing public during an established bidding period.

The public offering allows small individual investors, large institutional investors and others, such as employees of the company, to buy shares of the corporation during a specific time, while also being able to share and support the growth of the business.

Eligibility Criteria for IPO Application

To be eligible to participate in an IPO, investors must fulfil the following eligibility requirements established by the SEBI. The eligibility criteria include:

• Be an approved investor as defined by SEBI regulations. Currently, SEBI permits four classifications of investors for IPO applications, including Retail Individual Investors (RII), Non-institutional buyers (NII), and Qualified Institutional Buyers (QIB).

• Have a valid trading account and a dematerialised (demat) account with an approved depository participant.

• Have a permanent account number (PAN).

• Keep a valid savings or current account attached to the demat account.

• Keep sufficient funds in the bank account to cover the amount required to be blocked for the IPO application.

These requirements ensure seamless processing, verification, and allotment for applicants.

Requirements to Apply for an IPO

Before beginning the application process for an initial public offering (IPO), certain things must be fulfilled:

How to Apply for an IPO Online?

Investors can apply online through two primary methods: via internet banking or through a broker’s platform.

Through Internet Banking

• Enter your internet banking User ID and Password to log in.

• Then search for ASBA.

• Next, you will need to click on 'Apply IPO' and select the Company you would like to bid for.

• Fill in your details, including your PAN, Name of the Applicant, Number of Shares you want to Bid for, and the Price you are bidding at.

• Once complete, submit your application.

If your application is submitted before 2 PM on a working day, it will be processed on that day, but if your application is submitted after 2 PM or on a weekend, it will be processed on the next working day.

Through a Broker

Many investors prefer applying through their brokerage platform due to convenience. The steps typically include:

• Logging in to your account through the broker website or app. If you are not already registered, you will have to register first.

• Go to the IPO section of your account to see the current IPOs available to you.

• Choosing an IPO.

• Enter the number of shares or the lot size and choose a bid price. To improve the chances of allotment, experts often recommend bidding at the highest or cut-off price.

• Enter your UPI ID and apply.

• Head to your UPI App to accept the payment request.

• Waiting for the mandate notification that the money is blocked for payment.

How to Apply for an IPO Offline?

If you prefer the more traditional route as an investor, you can still apply for IPOs by completing and submitting an IPO application offline, as follows:

• To complete the offline process, you will need to visit your nearest bank or broker that offers ASBA services.

• Complete the physical ASBA application form with the correct KYC details.

• Submit the completed form to block the appropriate amount of money from your bank account.

• Once allotment has taken place, either your money is debited from your account if shares were allocated to you or released if no shares were allocated.