IPO Investing 101: How to Apply for Upcoming IPOs Using an IPO Listing App
Investors have always regarded Initial Public Offerings (IPOs) as one of the avenues through which they can partake in the growth stages of companies best described as ‘going private to public.’ It is no longer difficult to apply for upcoming IPOs: an IPO listing app simplifies that entire process.
Understanding IPO Investment
IPO investment is comparable to the purchase of shares of a company made public for the first time. The shares become available to the public via a listing on a recognized stock exchange. Investors apply for such shares through registered intermediaries or financial platforms. However, before doing so, the investor must go through the company’s draft red herring prospectus (DRHP), which depicts financials, business models, risks, and offer objectives.
The Key Steps for Applying for Upcoming IPOs
1. Open a Demat Account
To buy shares online, you need a Demat account, which is where these shares are electronically maintained. Many IPO listing apps also have an option for opening a Demat account through their app. The investor has to complete the KYC verification process by submitting identity proof, address proof, and a PAN card.
2. Find a Genuine IPO Listing App
The upcoming IPOs and their associated subscription information, offer price band, issue size, and listing dates appear in an IPO listing app. Such apps generally link with a brokerage platform/financial institution. Further, they may include integrated payment options, UPI mandates, and allotment status updates.
3. Explore Upcoming IPOs
Once you log into the app, you can explore it for IPOs. Here goes the profile of each IPO, which contains the company’s business overview, lot size, issue open and close dates, and price band. It is important to check the above parameters before making another application.
4. Select the IPO and Place Your Bid
Choosing the chosen IPO and applying comes next. Then enter the number of lots and set a bid price, or opt for the “cut-off” price that’s available for retail investors. It has a user-friendly bidding interface that auto-fills the essential fields.
5. Complete the Payment
You complete payment for IPO applications through the UPI mandate or ASBA (Application Supported by Blocked Amount). If using UPI, the app triggers a payment request from the app to the linked bank account. Investors must approve this request since the application process is considered complete after this. The blocking will remain in the bank account until the allotment is finalized.
6. Check Application Status
After the post-application, with the IPO listing app, you will be able to track its status. Investors will come to know if the UPI mandate was approved successfully, if the application was submitted to the exchange, and, much later, the status of the share allotment.
Advantages of Using an IPO Listing App
Investors can invest in IPOs using manual forms or net banking portals, as there is an integrated interface of essential services through IPO listing apps. The applications provide a notice of the newly opened IPOs, new subscriptions, and warnings on the close deadlines and live subscription data, which informs investors on demand from the different investor categories: Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs).
Besides, many IPO listing apps offer access to research reports, DRHP summaries, and expert views to help the investor become aware. Alerts and notifications would thus enable timely actions and minimize the chances of losing out on an IPO.
After The IPO Allotment
Investors will receive information about the outcome once the allotment process is complete. Shares, if allotted, appear in the account’s Demat account before the share is listed. If no shares are allotted, then the amount blocked is released. The IPO listing app provides the status of allotment and refund.
On listing day, that stock gets listed on the exchange, and trading starts. Post listing, it is then up to the investor to either hold shares or sell them. The IPO listing app normally includes market tracking features to follow price movements post-listing.
Conclusion
IPO investments have become a part of almost everything digitally, with IPO listing apps paving the way to better access. These apps also help users efficiently apply for upcoming IPOs by including all the critical steps like IPO discovery, bidding, payment, and status tracking in one centralized platform.
Pranab Bhandari is an Editor of the Financial Blog “Financebuzz”. Apart from writing informative financial articles for his blog, he is a regular contributor to many national and international publications namely Tweak Your Biz, Growth Rocks ETC.
