An initial public offering (IPO) is a simple process through which companies raise funds from the market. These funds are used by companies for a variety of reasons, like expansion, debt repayment, or providing an exit strategy. As an investor, you need to understand the steps before applying for IPOs and, more importantly, how to do it online. This guide explains each step of the online IPO application process in detail.
How to Apply for an IPO
To start applying for IPOs, you need to first open Demat account with a verified broker. Both a Demat and a trading account are important for holding and trading shares in electronic form. The following documents are needed to open a Demat account online:
- PAN Card
- Aadhaar Card
- Address Proof
- Identity Proof
Once your Demat or trading account is active, you can easily apply for IPOs online using one of the following methods:
- Application Supported by Blocked Amounts (ASBA) facility provided by banks.
- UPI-based payment method through your broker’s trading platform or mobile app.
How to Apply for an IPO through ASBA
ASBA is a facility that helps in applying for IPOs directly through your bank account. Here, the amount you bid for remains blocked in your account until the IPO allotment process is completed. This ensures that the funds are used only if you receive an allotment.
Here’s a step-by-step guide to applying for an IPO through a typical net banking ASBA facility:
Step 1: The first step is to log in to your internet banking account using your customer ID and password.
Step 2: Scroll to the ‘Request’ or ‘Investments’ section from the main menu.
Step 3: From the list of available services, you can select the ‘IPO’. Then you’ll see a list of live IPOs currently open for subscription. Choose the IPO you want to apply for and click ‘Apply’.
Step 4: Once your IPO has been selected, you need to enter the application details, like the number of shares you want to apply for and your preferred bid price.
Step 5: It is important to carefully review and confirm your application. The bank will then block the required amount in your account until the IPO allotment results are declared. Once your bid is submitted, you’ll receive an acknowledgement confirming your IPO application through ASBA.
How to Apply for an IPO through UPI
Applying for an IPO via Unified Payments Interface (UPI) is another simple option. Many brokers and financial platforms allow investors to apply for IPOs using their UPI IDs. Here’s how you can apply through this method:
Step 1: The first step when applying through UPI is to log in to your trading or Demat account through your broker’s website or mobile app. Then navigate to the ‘IPO’ section and select the company you want to invest in.
Step 2: Check the lot size being offered, carefully enter your bid details, such as the number of lots and the bid price. You can also select the cut-off price to improve your chances of allotment.
Step 3: You may bid using your UPI ID (associated with your bank account) and place your IPO.
Step 4: Once everything is done then you will receive a payment request (mandate) on your UPI app, such as Google Pay, PhonePe, or BHIM. Approve this mandate to block the IPO amount in your account.
Step 5: When everything is approved, your IPO application is successfully submitted. The funds will remain blocked until the allotment process is complete. If you are not allotted shares, the blocked amount will automatically be released.
Who is Eligible to Invest in an IPO?
Any individual who is legally allowed to enter into a financial agreement can apply for IPO online. To start the IPO investment process, it is important to have a PAN card issued by the income tax department and an active Demat account in your name. For applying to an IPO, a trading account is not compulsory. However, if you are planning to sell the shares, then you will need a trading account to execute the sale.
It’s also important to note that applying for an IPO does not assure share allotment. When you submit an IPO application, you are basically making an offer to buy shares at the bid price. The company then reviews all applications received and conducts the allotment process based on investor demand, total subscription, and regulatory guidelines.
When you are allotted shares, the required sum is debited from your linked bank account, and the shares are credited to your Demat account. This makes you a shareholder of the company with potential growth benefits and dividends.
Conclusion
Applying for an IPO online has become a fast, safe, and convenient process for investors. One can easily participate in a company’s growth process and become a shareholder. Whether you choose the ASBA facility through your bank or apply using the UPI method, both options ensure transparency and ease of transaction. By following the right steps and applying through trusted online channels, investors can take advantage of India’s growing capital market and make informed investment decisions for a better financial future.
Ref: https://groww.in/blog/how-to-invest-in-an-ipo-online
https://www.hdfcbank.com/personal/resources/learning-centre/invest/how-to-buy-ipo
Plag Report: Duplichecker-Plagiarism-Report – 2025-10-23T133953.659
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