How to Invest in IPO

What is IPO?

An initial public offering (IPO) relates to the method of offering shares of a private company to the public. It allows a firm to raise funds from public investors. The change from a private to a public company can be a great time for private investors to completely realize gains from their investment as it Mainly includes share premiums for current private investors. >>Read More>>

IPO Decision:

First, you have to decide on which IPO you want to apply. The best way to decide is to see companies’ backgrounds and financial results of that company. You can check every detail on the Securities and Exchange Board of India’s (SEBI’s) Official website.

Money:

You can use your savings for applying on good IPOs. Your savings is safe and are in your bank account as HOLD(LIEN AMOUNT) till allotment of IPO declared. If you are lucky then you will get allotment and on listing of that IPO you can sell it and can book your profit easily.

Demat Account For IPO:

A Demat Account is necessary for applying for an IPO. It is just like your bank accounts, but a demant account stores your stocks and financial securities. You can easily open your Demat account with the help of Pan card,Aadhar card,address and identity proofs. It is easy and free you can check how to open Demat account by Clicking Here

Application Process:

There are two ways for applying for IPOs:

  1. By Bank Account
  2. By Demat Account

But first you have to open your demat account then only you can apply through bank also by using Application Supported by Blocked Amount (ASBA) facility, which is provided in online banking portal.

Bidding:

You have to bid while applying for IPO,as per given lot size.Lot size means minimum number of shares for which you have to apply during IPO application.

There are also bid price which means price range: Upper limit and Lower Limit, you have bid for share in this price range.

Allotment:

On date of allotment you will came to know that you are alloted with shares or not, if IPO is over subscribed then chances of alloment are very low & if it is Under Subscribed then chances of allotment are very high.

Listing:

If you are lucky enough and get allotment of shares then on the day of listing you will came to know that how much share premium you will get.

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