The Indian IPO market has been buzzing of late. Initial Public Offerings, or IPOs, are getting oversubscribed multiple times and debutants are listing at hefty gains. IPOs can offer you short-term profit-making opportunities — by way of listing gains and also help you generate long-term wealth, depending on the issues you bid for.
Many first–time investors start their equity market journey with IPOs. Nowadays, the IPO online application process has become extremely simple, fast and effective. Nonetheless, before you think of applying to all upcoming IPOs blindly, here’s a caution. Not all IPOs can make you money.
Please remember these things before applying to IPOs online
- Stick to the main-board IPOs — here, the minimum ticket size is under Rs 15,000
- Consider SME IPOs only selectively—they have a ticket size above Rs 1 lakh and are lesser-known companies
- Read RHPs carefully
- You may also refer to our IPO research notes. They are crisp and actionable
- Pay attention to market conditions and
- Check the grey market premium before applying — the higher the better
How to apply for IPO online (using UPI)
- Go to your trading app and search for the IPO section
- Select the IPO you want to bid for
- Choose the category
- Retail (applications below Rs 2 lakh are treated as retail applications)
- Non-Institutional Investor (individual applications above Rs 2 lakh)
- Enter the quantity and price (you can tick the cut-off price box for applying under the retail category, otherwise, select the highest price in the offer price range.)
- Enter your UPI ID and create a mandate (Even HNI investors can use UPI IDs to create mandates for applications up to Rs 5 lakh.)
- Open your UPI App and accept the mandate to conclude the IPO application process
Online IPO: apply using ASBA (Application Supported by Blocked Amount)
- Open your net-banking facility
- Click on “IPO application through ASBA”
- Fill in your Depository Participant (DP) details correctly
- Select the right quantity and bid at the highest price in the range
- Choose the right bank account number if you have more than one account
- Accept the terms and conditions
That’s it, you are done!
It’s noteworthy that the IPO amount gets deducted from your bank account only on successful allotment and until then it continues to earn interest. If you don’t get an allotment, nothing changes for you except that your money gets unblocked.
Some upcoming IPOs to watch out for
- Vikram Solar Limited
- Waaree Energies
- Go Digit General Insurance Limited
- OLA Electric
- Navi Technologies
The process of applying for an IPO is simple and doesn’t take much time to complete. Of late, we have observed that many investors don’t apply for IPOs because getting the allotment involves luck. We believe, investing in well-researched IPOs can be rewarding in the short term as well as in the long run, depending on the IPOs you apply for.