Last Updated on March 15, 2024 by ethinos
If you’re interested in investing in the stock market, an IPO (Initial Public Offering) application is an excellent opportunity to be part of a company’s growth story. This article will guide you through the IPO application process, its categories, charges, rules, and the importance of understanding your application status. By the end, you’ll have all the information you need to confidently apply for an IPO and make informed investment decisions.
Table of Content
IPO Application Process
The IPO application process involves a series of steps that investors must follow to participate in a company’s public offering. These include submitting the required documents and forms, applying through a bank or a broker, and keeping track of the allotment process.
The requirements to apply for an IPO are quite simple. All you need is a demat account with a linked bank account with net banking or mobile banking enabled. You can also apply through a UPI ID.
Open a demat and trading account with us to make the application process much easier. With us, your IPO application form will be pre-filled, making it easy to apply.
IPO Application Categories
IPO applications are usually categorised based on the investment amount an individual wishes to make. These categories include – Retail, Non-Institutional Investors (HNIs), and Qualified Institutional Buyers (QIBs). Some IPOs may have reservations for an employee category. Furthermore, an anchor allocation can be made out of the QIB portion.
Each category has its own set of criteria, such as minimum investment requirements and allocation percentages.
IPO Application Time
A public issue has specific timeframes during which investors submit their applications, and get approval and shares credited to their accounts. The IPO application time typically ranges from 3 to 10 days.
Stay updated with the IPO calendar here to ensure you don’t miss out on applying for an IPO you’re interested in. Early applications increase the chances of getting allocated shares.
Additional Read: How does an IPO work?
IPO Application Charges
Generally, there are no IPO application charges. The bank or the stockbrokers receive a commission from the issuing company for processing the application.
IPO Application Form
To apply for an IPO, you need to fill out the IPO application form. This form can be obtained from various sources, including the official website of the IPO issuer, stock exchanges, and the website of your bank or broker (like Bajaj Broking).
The form will require personal and financial details, including your PAN card number, bank account details, and bid details, which determine the number of shares you wish to apply for.
IPO Application Number
The application number is a unique identification number generated after submitting your application. It serves as a reference to track the progress of your application. You can use this number to monitor your allotment status. It is mentioned in the confirmation email or SMS you receive after successfully submitting your IPO application.
Additional Read: Upcoming IPOs in India in 2024
IPO Application Rules
The following are the important guidelines set for investors in India–
- Only one application is allowed per PAN
- Make a payment from your own bank account
- Until the amount is debited, applications are not processed and considered valid
These rules ensure a fair and transparent allocation of shares. Understanding these rules is crucial to avoid any violations or errors during the application process.
IPO Application Status NSE
To check your application status on the National Stock Exchange (NSE) –
- You can visit the official NSE website or use their dedicated IPO status inquiry feature.
- Enter your PAN card number, application number and any other required information.
- The system will provide you with real-time updates on the status of your application.
Applying for an IPO is a significant step to take in your investment journey. By understanding the application process, categories, charges, and rules, you can ensure a smooth application experience. Tracking your IPO application status gives you timely insights into the progress of your investment. Remember, staying informed and making well-informed decisions is key to successful IPO investing.
Frequently Asked Questions
You can check your application status on the official website of the stock exchange, such as NSE or BSE. They have a dedicated IPO status inquiry feature where you can enter your PAN card number or application number to track your application’s progress.
The application form can be obtained from the official website of the company issuing the IPO, stock exchanges, or through your bank or broker’s website. You will also find the application form on our IPO page.
After successfully submitting your application, you will receive an acknowledgement email or SMS containing your unique IPO application number. This number serves as a reference for tracking your application status.
Yes, you can apply for an IPO in the HNI (High Net worth Individuals) category if you meet the specified criteria.
No, you cannot apply for an IPO using a different demat account.
This is a unique identification number which is generated once you submit your application. It serves as a reference to track the progress and status of your IPO application.
In the context of IPO applications, the term “cut off” refers to the issue price at which shares of an IPO are sold. Only bids at or above this price are eligible for IPO subscription. The cut-off price is determined by the bids submitted by investors for an IPO.
To apply for an IPO online, you can visit the official website of your bank or brokerage firm, navigate to the IPO section, fill out the IPO application form with accurate details, complete the payment process through the provided payment options, and submit the application.
DP ID (Depository Participant Identification) is a unique identification number assigned to a depository participant by the depository (CDSL or NSDL). This number is required to be mentioned in the IPO application form to facilitate the allotment of shares to your demat account.
DP name refers to the name of the depository participant with whom you hold a demat account. It is important to mention the correct DP name in the application form to ensure a seamless transfer of shares to your demat account upon allotment.
