Invest in IPOs
Apply to invest in companies before they get listed, easily via UPI.
Applying for an IPO for the first time?
Learn more about how to applyUpcoming IPOs
| Name | Bidding dates | Price range | Lot size |
|---|---|---|---|
| 04-07 Oct. | ₹56-59 | 254 shares | |
Mobikwik IPOMobikwik | To be announced | - | - |
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Recently listed IPOs
| Name | Bidding dates | Price range |
|---|---|---|
| 14-16 Sep. | ₹314-330 | |
| 05-07 Sep. | ₹500-525 | |
Dreamfolks Services LimitedDREAMFOLKS | 24-26 Aug. | ₹308-326 |
| 12-18 Aug. | ₹209-220 |
IPO FAQs
What is an IPO investment?
When a company offers its shares for the first time to the public by listing in the stock exchange (BSE / NSE), it is called an Initial Public Offering. Now, apart from venture capitalists, owners and angel investors, the public can also buy shares of the company. An IPO to be sold needs the compliance of SEBI. IPO investment is investing in shares of companies that are listing their stocks in the exchange market (BSE / NSE) for the very first time.
What does IPO mean?
The IPO full form is Initial Public Offering. When a private corporation issues stock for the very first time to all investors, the process is called an Initial Public Offering. When a company wants to raise money, it can issue a stock for sale by issuing either Debt or Equity. With Equity, the first offering is made through listing the stock for the public in the stock market. This first offering is when the corporation goes public.
What does upcoming IPOs mean?
Upcoming IPOs are those that have already submitted the DRHP and are set to release in the next two weeks to a month’s time. This list helps investors know which are the upcoming offerings that they can bid for in the coming immediate period of time.
What does recently listed IPOs mean?
An IPO goes through various stages before it can be listed in the BSE or NSE market. They are listed after the bidding process comes to an end and all the shares have been allotted to the investors whose bids were successful. Once they are listed, they are called recently listed IPOs and are available on the BSE and NSE markets. These can be listed at both premium, i.e. higher than the issue price, and discounted prices, i.e. lower than the issue price.
What is issue size?
The Issue Size or Lot Size is the minimum number of shares that an investor can bid on. The issue size will be the number of shares in a bid for 1, so an investor can bid for 1 or multiples of 1. The issue size is decided as per the amount of money that needs to be raised by the company. For example, the issue size of the Zomato IPO was 195 shares, so a minimum bid needed was for all 195 of them at least.
What is Price Band?
The company that is issuing an IPO declares a price range for the shares being deployed into the market. This price range is called the Price Band. Let us say the Price Band of company X is Rs. 79 - Rs. 83. The investors can now bid as per this price band. If the shares are in heavy demand the company can choose to release them at Rs. 83, and those bidders that bid as per this amount are selected for subscription.
What is DRHP?
Any company that wants to release an IPO must collect and submit all the important information required for approval by SEBI. The document used to compile all this data methodically is known as DRHP or Draft Red Herring Prospectus. The DRHP is available to all investors to know more about the company before putting in their bid. This document includes the nature of business, risks, strengths, weaknesses, promoters and more. The stock can be released only after the SEBI approval comes through.
What is RHP?
The RHP or Red Herring Prospectus is the document that includes diverse information about the company like financial records, future plans, current offerings, investors and stakeholders, potential risks, strengths and weaknesses and more. This document is created with the help of the underwriters (investment banks) and then sent for SEBI approvals. Many times, underwriters use this document to attract potential institutional investors as well.
Who can invest?
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Investors can be any adult that is able to engage in a contract. Investors are qualified into mainly 3 types:
- Qualified Institutional Buyers (QIBs): Mutual funds, Domestic financial institutions like banks, financial institutions and insurance companies and more.
- Non-institutional Investors: Corporates and Individuals.
- Retail Institutional Investors
Why is Upstox the best platform to apply for an IPO?
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Upstox is an online platform that strives to make your investment plans much easier while providing you all the information you need in one place. There are plenty of reasons to apply through Upstox.
- Skip offline paperwork that is a long and tedious process that can be very intensive.
- Using Upstox is hassle free and simple. It takes only a few minutes at the most.
- The stock is allocated and credited automatically to your registered demat account and there is no need for you to follow up or use any other platform to check your allotment status.
- You can view all of your investments in one place on your Upstox account.
- All the important information can be found on Upstox, you can check the price bands, upcoming & recently listed IPOs, and more.
What is pre-apply?
Some private investors are eligible to apply for the IPO 3 - 4 days before the bidding process starts. They are able to do so at a reduced price and procure pre-bid. This is to make sure that they do not miss out on the bid. Once it goes live, a UPI will be sent to the investor, which he may accept as to put in his bid once it starts.
What is an IPO?
When a private corporation issues stock for the very first time to the public, the process is called an Initial Public Offering (IPO). When a company wants to raise money, it can issue a stock for sale by issuing either Debt or Equity. With Equity, the first offering is made through listing the shares for the public in the stock market. This first offering is called an Initial Public Offering and this is when the company goes public.What are the steps of the IPO process in India?
The IPO process in India has various steps that a private corporation takes to go public.Investment Bank Selection:
Selecting the underwriter investment bank is the very first step. The underwriter bank helps the company establish the amount of funds that need to be raised, the type of securities that can be offered and the initial price that is set per share. For larger stocks, there may be more than one investment bank.Red Herring Prospectus:
The RHP or Red Herring Prospectus is the document that includes diverse information about the company like financial records, future plans, current offerings, investors and stakeholders, potential risks, strengths and weaknesses and more. This document is created with the help of the underwriters (investment banks) and then sent for SEBI approvals. Many times, underwriters use this document to attract potential institutional investors as well.SEBI Approval:
The RHP is then presented to the Securities and Exchange Board of India (SEBI) for approval. If they are satisfied and give the green light, the process can begin. The SEBI provides a date and time for the release. In the case that SEBI is not satisfied, it asks the underwriters and companies to make the changes and resubmit the proposal.Stock Exchange Approval:
To list the IPO on either of the stock exchanges - BSE or NSE, another approval needs to be seeked. The BSE, for example, has a listing department that is in charge of providing approval, who in turn have a list of criteria that beget the approval.Subscription of Shares:
Once all the approvals are gained, the corporate can open their stocks to investors, This is done as per the pre-approved dates provided in the prospectus. The investors then need to fill out the Initial Public Offerings application form to be eligible to subscribe to the offerings.Listing:
As per the price band, the investors put in their bids. The offerings are then allotted to the successful investors and credited to their demat accounts. The stock is then listed on the BSE or NSE. Shares are allotted to investors as per availability, so in the case of over subscription, fewer than demanded shares may be allotted or sometimes none at all and the remaining money is refunded.
Why does a company launch an IPO?
Generally, a company decides to launch an IPO and go public for one of the following reasons.Capital requirement for growth and expansion:
When a corporation is ready to increase its operations and productivity it requires capital funds. To find more investment, going public can be a great way to expand.Early investors and owners want to sell their stake:
Going public can be a good exit strategy for already existing owners, venture capitalists and stakeholders. Sale of stock makes the company's funds more liquid, and venture capitalists can sell their funds in return for higher benefits and leave the organisation with these returns.Creating Public Awareness:
IPOs create buzz. They provide for publicity, events and are listed with stars on the stock exchange. The public is sure to hear and see more about the company this way, spreading awareness of its operations.
How to invest in an IPO?
To start your investment in IPO -Ask yourselves these three questions:
- How much do you want to invest?
- Can you invest that much?
- What is the risk level you can take on?
- What is your financial objective and does this type of an instrument align with it?
Create the following accounts:
- Demat Account: A dematerialised or electronic account that is used to store all your shares.
- Trading Account: For investing online, one needs a trading account so that they can trade in the market according to their preferences.
- Bank Account: Any investment needs a bank account, so that the payment can be debited and credited upon buying and selling of stock.
Apply via ASBA facility that is provided by the bank:
- Log onto your netbanking account.
- Click on the IPOs option in the requests tab and apply for any of the ones under the list that opens.
- Submit information regarding the number of shares and bid price.
- Accept the terms and conditions and go ahead with the transaction. This will block the transaction amount in your bank and once the IPO application is accepted, the amount will be debited. If rejected, the amount will be released.
Apply via UPI facility on Upstox:
- While ASBA requires logging onto your netbanking, the UPI facility can be done through your trading account on Upstox.
- Select the Initial Public Offering that you want to invest in.
- Submit the number of shares and your bid price for the same.
- Fill in your personal information including your UPI ID.
- Complete the form, accept the terms and conditions and clear the transaction. The money will be blocked and debited only after acceptance of the application.
How to check the allotment status?
The allotment status of an IPO can only be checked after 7 working days after the issue closing date. To do this:- Login to your Upstox app using your biometrics or 6 digit pin.
- Click on the discover tab at the bottom and click ‘invest in IPO’. Here you can check the ones you have applied for as well as its allotment status.
- Once you click on ‘invest in IPOs’ a tab will open with two categories - Ongoing and My Applications. Click on My Applications.
- Click on the offering that you want to check the allotment status for. If it has been allotted the tab will say ‘You got the IPO’.
- To see your investment journey completely, click on the status and that is it.
What is an open and close date?
Specific dates are declared by the company that are open to the public for the buying of shares. In most cases, this subscription is open only on three working days. The day on which the subscription starts is called the open date and the day on which the subscription ends is called the close date.How to apply for an IPO through Upstox?
The application apply for an IPO on Upstox is very simple and easy to execute. Just follow these simple steps:- Login to your Upstox App with your 6 digit pin or biometrics.
- Click on the ‘Discover’ tab at the bottom of the screen, then click ‘Invest in IPO’.
- Now select the stock that you wish to bid on and you will be redirected to a screen with two tabs - ‘Overview’ and ‘Timeline’. These provide more information about the stock, which you can read or skip by simply clicking on ‘Apply’. (The apply button is disabled during non-market hours and enabled only between 10am - 5pm).
- This opens the application page, which you can now fill out with your information. After this, click on ‘continue’.
- Enter your UPI ID and click ‘confirm’.
- Check your application status by clicking on ‘status’ and on this screen you can also see a UPI mandate payment pending message. This means that your bank is supposed to release the funds automatically on or before the mandate expiry date if you do not get the allotment of shares that you have applied for. In the case that this does not happen, you can raise an issue on ipo.upi@npci.org.in.
- Accept the mandate request and now you can check your allotment status under the ‘status’ tab.
- You can also check your entire investment journey - the timeline of your application along with date details.
What are the advantages of applying for an IPO through Upstox?
Upstox is an online platform that strives to make your investment plans much easier while providing you all the information you need in one place. There are plenty of reasons to apply through Upstox.- Skip offline paperwork that is a long and tedious process that can be very intensive.
- Using Upstox is hassle free and simple. It takes only a few minutes at the most.
- The shares are allocated and credited automatically to your registered demat account and there is no need for you to follow up or use any other platform to check your allotment status.
- You can view all of your bought shares in one place on your Upstox account.
- All the important information can be found on Upstox, you can check the price bands, upcoming & recently listed IPOs, and more.