Last Updated on March 15, 2024 by ethinos
If you’re looking to invest in a company that is going public, you may be interested in applying for its Initial Public offering (IPO). To do so, you can try using UPI to make the payment. UPI being the real-time interbank payment system in India offers a range of benefits that make the process simple, secure and efficient.
Want to apply for an IPO using UPI? This article will guide you through the entire process of using UPI for your IPO application and its benefits.
Table of Content
What Is an IPO?
An IPO or Initial Public Offering is a process where a company sells its shares to the public for the first time. This enables the company to raise funds by offering ownership to the investors. If you choose to invest in an IPO, you have a chance to own shares in a company even before it gets listed on the stock exchange.
Who Can Participate in an IPO?
Anyone can participate in an IPO as long as they are above 18 years of age and have a demat account to hold shares they have bought. Typically, individuals, institutional investors, and qualified foreign investors can apply for shares in an IPO.
To apply for shares in an IPO, you need to have a demat account and a bank account. You can apply for an IPO through your bank’s online platform, using a trading account, or through intermediaries like merchant banks.
What Is a UPI ID?
When you want to buy shares of a company that’s going public for the first time, you can do so using your bank’s net banking or mobile banking platform. To apply instantly for an IPO, you can also use a UPI ID. This mode provides several advantages, including instant alerts, minimal chances of technical glitches and a way for you to get notifications and alerts on your allotment status.
A UPI (Unified Payments Interface) ID is a unique identifier linked to your bank account. It allows you to make payments and transfer money securely. It is a digital payment system that enables you to make transactions without the need to disclose your account details.
Applying for the IPO Using UPI ID
To apply for an IPO using UPI, you need to provide your UPI ID during the application process. This will allow the company issuing the shares to debit the required amount from your bank account once the shares are allotted to you. The steps to apply for an IPO using UPI ID are:
Step 1: Download an application which facilitates UPI payments
Step 2: Create a UPI ID. Set a PIN on it.
Step 3: Log in to your demat and trading account.
Step 4: Look for the IPO section.
Step 5: Place the bid details.
Step 6: Enter the UPI details and press submit.
Step 7: You will receive a payment approval request on your UPI application.
Step 8: You need to approve the UPI mandate request.
Once your application gets approved, the amount will automatically be debited. You will be allotted the shares on the day of allotment.
What Are the Benefits of Using UPI for IPOs?
UPI-based IPO application offers several benefits, like –
- Faster payment processing
- Instant confirmation of payment
- Seamless application process
Additional Read: ASBA IPO Application
Summing up
Applying for an IPO using UPI is a convenient and secure way of investing in a company that is going public. By following the steps outlined in this article, you can apply for an IPO using UPI seamlessly and get alerts on the allotment status.
Take the first step towards investing in an IPO using UPI today and unlock the potential for future financial growth. Apply for upcoming IPOs with ease and convenience by leveraging the benefits of UPI payments. Don’t miss out on this opportunity to own shares in promising companies. Apply now through Bajaj Broking’s easy-to-use trading platform!
Frequently Asked Questions:
To create a UPI ID for the IPO application, download a UPI-enabled app, choose your bank, and link your bank account to generate a UPI ID.
To set your UPI ID in an IPO application, open the application form on your bank or broker’s website. Then, set the new UPI ID. Note that once a UPI mandate request is created, you can no longer change it.
Yes, you can use other UPI IDs for IPO applications as long as they are linked to your bank account.
UPI status in IPO refers to the confirmation of payment through UPI for an IPO application.
UPI is not mandatory for IPO applications, but using it offers benefits such as faster payment processing and instant confirmation. You can also choose to apply through other payment modes supported by the broker.
