How to apply for IPO online from a private limited or LLP Company demat account?

An Initial Public Offering (IPO) application for a Company or HUF (Hindu Undivided Family) requires a manual, paper-based process, as online options are generally not available with most banks.

Key Points for Company/HUF IPO Applications:

• Demat Account Requirement: A company or HUF must have a Demat account to apply for an IPO.
• Application Category: A private limited company or an LLP (Limited Liability Partnership) applies under the NII (Non-Institutional Investors) category.
• The Paper Process: The standard method involves downloading, printing, signing, and physically submitting the paper IPO application form to the bank.
• No Online Application (Generally): Online ASBA (Applications Supported by Blocked Amount) applications are usually not possible because:

The online banking login for a company is often linked to an individual director’s name so the application form is pre-filled with the director’s personal details (name and PAN) instead of the company’s information.

UPI applications cannot be used since UPI IDs are assigned to individuals and not companies. For UPI IPO applications, the name linked to the UPI ID must match the name on the Demat account.

Exception: HDFC Net Banking is an exception for Minor, HUF, and Company accounts to apply for IPO shares online. For other banks, if they don’t offer an online option for these accounts, the paper application is mandatory.

Simplified Steps for Paper IPO Application:

1. Get the Form from official BSE or NSE website’s IPO section.
2. Download the blank ASBA form or use the e-Forms link.
3. Fill out the form accurately and print a hard copy.
4. Take the signed form to your bank branch.
5. Obtain the confirmation number from the bank.
6. The bank will then block the required funds (place a lien) and submit your application.

Important Notes:

• Bank Acceptance: All major banks, including HDFC Bank, ICICI Bank, SBI, Axis Bank, and Kotak Mahindra Bank, accept these paper IPO applications.
• Same Rules for HUF: The process and restrictions detailed above also apply to HUF accounts.
• No Third-Party ASBA: You cannot use a third-party bank account to apply. For instance, a personal bank account cannot be used to apply for shares against a company’s Demat account. The primary account holder’s PAN number in the Bank Account and Demat Account must be the same for the application to be valid (This rule came into effect on May 1st, 2022).
• UPI Limit: The UPI limit for an IPO application has been raised to ₹5 Lakh per transaction.