In the stock market, few events attract as much attention as an Initial Public Offering (IPO). It marks the moment when a company offers its shares to the public for the first time. An IPO allows you to purchase shares at an early stage, usually at attractive issue prices. After the stock gets listed on the exchange, you can either sell the shares shortly or hold them longer, depending on your goals. IPOs also add diversification by introducing newly listed companies into your portfolio.
Today, trading apps have transformed how you apply for IPOs. You can now complete the entire IPO application process quickly from your phone in just three easy steps. Get all the insights below.
Step 1: Open a demat account
Before you apply for an IPO, you need to open a demat account if you don’t already have one. Beyond being a requirement, having a demat account with a reliable trading app also offers added advantages like:
- Access to IPO details in one dashboard: Check out live and upcoming IPOs with their schedules, price bands, and lot sizes at a glance.
- Powerful decision-making tools: Compare offers using financial indicators such as revenue growth, profitability, and valuation ratios.
- Market intelligence at your fingertips: Track sector trends, check grey market premiums, and study subscription data across retail, institutional, and HNI categories.
- Stay updated in real time: Receive instant notifications on IPO openings, bidding deadlines, allotment status, and listing dates.
With a dependable trading app, you can open a demat account within 15 minutes using only your Aadhaar, PAN card, and bank details.
Step 2: Log in and go to the IPO section
Open your trading app and go to the “IPO” section. This section provides details of both upcoming IPOs and ongoing ones, with company names, issue dates, and price bands.
Step 3: Choose the IPO and place your bid
Click on the IPO that interests you to open its application page. Go through the Red Herring Prospectus (RHP), research reports, and other important information provided in the app, like financials and company background. Now, tap on “Apply”. Enter the number of lots you wish to bid for and confirm the price.
Now, provide your UPI details, after which you will receive a mandate request on your UPI app. Approve the request to block the necessary funds in your bank account. The money stays blocked until the allotment process finishes.
Note: One IPO application allows up to three separate bids. Every bid must be within the price range and in multiples of the lot size. Don’t forget to approve the mandate before 5 p.m. on the IPO closing date, as any delay may lead to rejection of your application.
If you get an allotment, the blocked amount will be debited from your bank account. The shares are credited to your demat account on the day of listing. If no allotment happens, the amount is unblocked and refunded to your bank account without deductions.
To sum up
Now you know how easy it is to apply for IPOs using a trading app. You only need to open a demat account digitally, log in and select the IPO that interests you, and approve the UPI mandate. These three steps are enough to complete the process from anywhere.
MO Riise by Motilal Oswal makes your IPO journey simple, efficient, and informed by offering all the essential tools and features in one powerful platform. Backed by a SEBI-registered public entity, more than 40 lakh users already use MO Riise. You can track live, upcoming, closed, and listed IPOs, access RHPs in one tap, download research reports, and even pre-apply. Real-time subscription updates, an FAQ section, and 24/7 assistance enhance your IPO experience even more.
Begin your IPO journey with MO Riise today!