Answer
You can apply for an Initial Public Offering (IPO) using online methods, but an offline option is also available.
How to Apply for an IPO?
Using UPI through Broker Apps (Most Popular):
- Log in to your stockbroker’s app (like Zerodha, Groww, etc.).
- Find the active IPO you want to apply for.
- Enter the details for your bid (the price and number of shares you want).
- Put in your UPI ID.
- A request (called a ‘mandate’) will come up on your UPI payment app (Google Pay, PhonePe, etc.).
- Approve this mandate. Your bank will then block the required money in your account.
ASBA via Net Banking:
This method uses your bank’s online platform.
ASBA stands for Application Supported by Blocked Amount. It is a system where the application amount is blocked in your savings account and only debited if you get the shares.
Steps:
- Log in to your bank’s net banking website.
- Go to the section for ‘IPO’ or ‘ASBA’.
- Select the IPO, and then enter your Demat account number, the bid price, and the quantity of shares.
- The bank blocks the amount in your account directly.
Through a 3-in-1 Account:
A special 3-in-1 account (which links your savings account, trading account, and Demat account together, offered by banks like ICICI or Axis) can be used to apply straight from that integrated platform very easily.
Submitting a Physical Form (Less Common):
- You can also fill out a physical application form.
- Get the form from your broker, a bank, or a Syndicate Member.
- Fill it and submit it at a bank branch or a broker’s office that is authorized for collections (a Designated Collection Center).
Important Points to Remember:
- Money Blocked, Not Deducted: Your money is only blocked in your account. It is only deducted if you are successfully allotted shares. If you don’t get any shares, the block is removed, and the money is unblocked.
- One Application Rule: You can only submit one application per PAN card. If you apply multiple times using different apps or banks, all your applications will be rejected.
- Must-Have Documents: To apply for an IPO, you must have a valid PAN card, a bank account, and an active Demat (dematerialized) account.