Introduction

What is an IPO?

Apply for IPO Using UPI ID – An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time, allowing investors to buy ownership of the company as it gets listed on a stock exchange.

Investing in an Initial Public Offering (IPO) is one of the best ways to enter the stock market early and potentially gain high returns.

IPOs allow companies to raise funds by offering shares to the public for the first time. With digital advancements, applying for an IPO has become easier, especially with the introduction of UPI-based payments. It is important to note that bids must fall within the specified price range during the IPO process. For example, if the price range is set between $100 and $120, your bid must be within these limits.

In this guide, we will walk you through how to apply for an IPO online using your UPI ID in just 8 simple steps.

Benefits of Applying for IPO Online Using UPI ID

Using UPI (Unified Payments Interface) for applying for IPOs has several advantages:

• Faster Processing: No need for physical forms or bank visits.
• Secure Transactions: Payments are directly linked to your registered bank account.
• Convenience: Easily apply through brokerage apps or websites from anywhere.
• Real-time Alerts: Get instant notifications regarding your IPO application and payment status.

Understanding the Process of Initial Public Offering in India

An Initial Public Offering in India follows a regulated process:

• Companies file for IPO approval with SEBI (Securities and Exchange Board of India).
• IPOs are listed on stock exchanges like NSE and BSE.
• Investors apply during the subscription period.
• Post-allotment, shares are credited to successful applicants, and trading begins.
• To make informed investment decisions, stay updated with the upcoming IPO in India and IPO GMP today (Grey Market Premium), which indicates demand for an IPO before listing.

You may also want to know the Non Allotment of Shares in IPO

Pre-Requisites for UPI ID IPO Application

To apply for an IPO using UPI, you need to ensure that your UPI ID is linked to your bank account. The bank account should be in the name of the person applying for the IPO. Additionally, the UPI ID should be registered with the same mobile number that is linked to your demat account. This ensures seamless transactions and avoids any discrepancies during the application process.

Before you start, make sure:

• Your UPI ID is active and linked to your primary bank account.
• The bank account is in your name and matches the details in your demat account.
• The mobile number registered with your UPI ID is the same as the one linked to your demat account.

Having these prerequisites in place will make the IPO application process smooth and hassle-free.

Step-by-Step Guide on How to Apply for IPO Online

Check the List of Upcoming IPO in India

• Visit financial news websites, NSE/BSE portals, or brokerage platforms.
• Analyse details like company background, issue size, and IPO price.
• Review IPO GMP today and grey market IPO trends.

Choose a Reliable Broker or Trading Platform

• Select platforms like Zerodha, Groww, Upstox, or traditional banks offering IPO services.
• Ensure they support how to apply for IPO online using UPI.

Ensure UPI ID is Linked to Your Bank Account

• Create a UPI ID using apps like Google Pay, PhonePe, Paytm, or BHIM.
• Link the UPI ID to your primary bank account for seamless transactions.

Log in to Your Broker’s IPO Section

• Open the IPO investment section in your trading app.
• Select the IPO you want to apply for and proceed.

Enter Bid Details and Choose Cut-Off Price

• Decide on the number of shares and the bid price, ensuring both fall within the specified price range.
• Choosing the “Cut-Off Price” option increases allotment chances.

Enter Your UPI ID and Submit the Application

• Ensure you enter the correct UPI ID linked to your bank account.
• Submit your IPO application and wait for a mandate request.

Approve the Mandate Request on Your UPI App

• Open your UPI app and check for the IPO payment request.
• Approve the mandate to block the required funds in your account.

Confirming and Tracking Your IPO Application

Once you have submitted your IPO application, it’s important to confirm and track its status. You can do this on the IPO website or through your UPI app. After submitting the application, you will receive a confirmation message on your registered mobile number, confirming its successful submission.

To track your application:

• Visit the IPO website or use your broker’s platform.
• Check for any updates or notifications regarding your application status.
• In case of any issues, contact the IPO helpline or UPI customer support for assistance.

Keeping an eye on your application status ensures you are informed about any updates or required actions promptly.

• Visit NSE/BSE or your broker’s platform to check allotment results.
• If shares are not allotted, the blocked amount will be refunded.

You may also want to know How to Find IPO Mandate on UPI Apps

Understanding IPO GMP (Grey Market Premium) and Its Impact

IPO GMP (Grey Market Premium) helps investors gauge the demand for an IPO before its listing. It represents the price at which shares are trading in the grey market IPO before the official market debut.

A high current IPO GMP indicates strong demand.

However, GMP is unofficial and can be volatile, so investors should rely on company fundamentals.

Common Mistakes to Avoid While Applying for an IPO

• Incorrect UPI ID: Double-check your UPI details before submitting.
• Wrong Bid Price: Selecting a non-competitive bid can reduce allotment chances.
• Delaying Application: Last-minute applications may fail due to technical issues.

Post-Application Process

After applying for an IPO, the next step is to wait for the allotment process to be completed. This process typically takes a few days. You will receive an email or SMS notification once the allotment is done.

Here’s what happens post-application:

• Allotment Notification: If you receive a share allotment, the bank will debit the amount from your account and credit the shares to your Demat account.
• Refund Process: In case you are not allotted any shares, the blocked amount will be refunded to your bank account.
• Status Check: You can check the status of your IPO application and allotment on the IPO website or through your UPI app.

Staying informed about the post-application process helps you manage your investments effectively and ensures you are aware of the next steps.

Conclusion

Applying for an IPO using UPI ID is a quick and hassle-free process. By following these 8 easy steps, you can successfully invest in upcoming IPOs and maximize your investment opportunities.

 Stay updated with IPO GMP today, research thoroughly, and use trusted brokers for a seamless experience. For expert guidance and real-time updates on how to apply for IPOs, trust Jainam Broking – your reliable partner in financial growth!

So, are you planning to apply for IPO? If yes, you are at the right place! 

Open a Demat Account with Jainam Broking Ltd. Now!