What Are the Different Ways of Filing New Upcoming IPO Applications?

With IPOs gaining popularity among investors as an easy entry point into a company’s growth story upon going public, there is a good number of future IPOs being lined up. Knowing the proper way of filing the application is critical for securing a share of the promising opportunity. Here’s a step-by-step guide on different methods available to file your IPO application. 

What is an IPO Application?

An IPO application is your application to subscribe to the shares of a company going public. By applying for an upcoming IPO, you are stating your intention to buy a specified number of shares at a price set by the company during the IPO process. The Securities and Exchange Board of India (SEBI) has simplified the application process to make it more accessible to investors.

Different Ways to File an IPO Application

Applications for upcoming IPOs can be filed through multiple channels. The options range from convenience to experience and will fit all types of investors. Here are some ways through which applications can be filed for an IPO.

1. Online Through ASBA (Applications Supported by Blocked Amount)

ASBA is the most used way through which applications are made for an IPO. Here, an investor gets to freeze the application amount in the bank account. At that time of finalization, it guarantees funds being there with the investor. Moreover, at the time of the transaction, the process has security to the bank.

Here’s how to operate ASBA.

Step 1: Login through the net banking account.

Step 2: The investor is to select the option IPO Application.

Step 3: Select the upcoming IPO you wish to apply for. 

Step 4: Enter the number of shares and bid price. 

Step 5: Confirm and submit your application. 

ASBA is mandatory for all retail investors applying through their banks and is supported by most major banks in India. 

2. Through UPI (Unified Payments Interface)

UPI has further eased the process of applying for an IPO by integrating it with trading platforms and brokers. Many investors like this method because it is fast and easy to apply. 

Here is how to apply for an IPO using UPI: 

Step 1: Open your broker’s trading app or platform. 

Step 2: Go to the IPO section and select the upcoming IPO.

Step 3: Enter your UPI ID and bid details. 

Step 4: Approve the transaction request on your UPI app. 

The UPI-based IPO application process is fast and doesn’t require visiting a bank branch or submitting physical forms. 

3. Through Your Broker

Stockbrokers are also integral in making the IPO application process easier for their clients. Most brokers offer an IPO application service directly through their trading platforms or apps. 

How to apply through a broker: 

Step 1: Log in to your trading account. 

Step 2: Look for the ‘IPO’ section under investment options.

Step 3: Select the IPO you’re interested in and enter the application details. 

Step 4: Confirm the application and authorize payment. 

Brokers often guide investors through the application process, making it a preferred option for first-time applicants. 

4. Offline – Through Bank Branches

For those who prefer the old way, one can still apply for an IPO offline. An investor can walk into his bank’s branch and fill up the physical ASBA application form.

Offline application process:

Step 1: Collect the IPO application form from your bank.

Step 2: Fill in the details, including your Demat account number and bid amount.

Step 3: Submit the form to the bank branch. 

Step 4: The bank blocks the application amount in your account until the allotment is finalized. 

While less common of late, this method remains an alternative for investors without access to online platforms. 

Important Points to Remember

1. Demat Account Is Compulsory: One cannot apply for an IPO without a Demat account, as shares are credited directly to your account.

2. PAN Ready: Your PAN (Permanent Account Number) is compulsory for all the IPO applications.

3. Bid Sensibly: Be aware of the price band and bid according to it. Overbidding or underbidding might affect your allotment chances.

4. Check if the banks and brokers allow IPO applications. Not all banks and brokers allow IPO applications. Therefore, ensure that this aspect is confirmed before proceeding.

Conclusion

Thanks to platforms like ASBA, UPI, and brokers’ trading apps, filing an IPO application has been made easier and more accessible than ever. Be a seasoned investor or a fresh one, knowing these processes will make you join those upcoming IPOs seamlessly. Evaluate the options, decide on the best option available for you, and then take the first step towards being a shareholder in the next big market opportunity.