IPO Application
The IPO (Initial Public Offering) application represents the process through which investors can obtain company shares from a publicly listed company. During the subscription period of the IPO investors can submit their applications to place their bids.
The guide includes comprehensive information about IPO applications by describing the procedures along with bidding options, categories and charges, and ways to check status. The application meets all necessary SEO requirements to produce clear content for users seeking IPO investment details.
IPO Application Process
An investor needs to choose between two key application procedures to participate in an IPO.
- Investors may apply for an IPO online through net banking or stockbroker platforms where they can use either UPI payment or ASBA (Application Supported by Blocked Amount).
- Investors need to deliver IPO application forms to either bank branches holding authorization or brokers through conventional channels.
IPO Application Procedure
- Visit the IPO application portal maintained by your broker or your banking platform.
- Choose the IPO from the list of available issues.
- Users should fill in their PAN information together with their Demat account number and specify the bid quantity along with the price.
- Users need to select between UPI and ASBA Net Banking as their payment option.
- Review and submit the application.
- By using UPI you must confirm the mandate agreement before it takes effect or by using ASBA you need to check bank account balance is sufficient.
IPO Application Categories
Investors must select the appropriate category before applying. Each category has specific investment limits and allocation rules:
Important Rule: An investor cannot apply under multiple categories using the same PAN. However, an individual can apply under the Employee and Shareholder categories simultaneously, along with Retail or NII.
IPO Bidding Options
An investor can submit multiple bids within an IPO application. However, only one IPO application per PAN is allowed in a category. Here’s a summary of the bidding options:
IPO Application Time
An IPO functions with an opening period lasting between 3 days to 10 days. The application submission window is:
- The application opening initiates at 10 AM on the Issue Opening Date.
- The Issue Closing Date information will be officially accepted until the specified 5 PM cut-off time.
- The ASBA Bank cut-off schedule for IPO submissions varies between financial institutions such as State Bank of India utilizes 2 PM while ICICI Bank implements 3 PM, HDFC Bank operates at 3 PM, Axis Bank uses 3 PM and Kotak Bank performs at 2 PM.
IPO Application Charges
The IPO application process comes without any cost for investors to participate. Banks and brokers do not impose costs to clients but they accept payments from issuing companies as commissions.
Shareholders must expect to pay brokerage fees when they choose to sell shares acquired in an IPO although the cost amount will depend on the broker's specific charges.
IPO Application Form & Number
- The two-page IPO application serves as a necessary document for offline applications.
- The IPO application number functions as a special tracking code that helps monitor IPO application statuses and allocation data.
IPO Application Rules
- One PAN holder should submit only one application for each category of IPO.
- The money for the transaction needs to come directly from the investor's account.
- Applications from one PAN will be refused unless they relate to employee/shareholder categories.
- Most applications from third parties are prohibited.
IPO Application Status
Both NSE and BSE websites as well as broker platforms, allow investors to check application status through PAN, Application number, and Demat account number.
- PAN Number
- Application Number
- Demat Account Number
Frequently Asked Questions
1. Where can I check my IPO application status?
You can check the status on the NSE/BSE website or your broker’s platform.
2. Where to get an IPO application form?
IPO application forms are available on the NSE/BSE websites, at broker offices, or at designated bank branches.
3. How to fill out an IPO application form?
You need to enter your PAN, Demat account details, bid price, and quantity. Ensure accuracy to avoid rejection.
4. Can I apply for an IPO in the HNI category?
Yes, if your application amount exceeds ₹2 lakhs, you fall under the NII (HNI) category.
5. Can I apply for an IPO with different bank accounts?
No, the payment should be made from the same bank account registered with your Demat account.
6. Can I apply for an IPO after market hours?
Yes, online applications can be submitted 24/7 while the IPO is open, but they will be processed the next day.
7. Can I apply for an IPO with a different Demat account?
No, the IPO application must be linked to the investor’s own Demat account.
8. Can I apply for an IPO through a credit card?
No, IPO applications require payment through UPI, ASBA, or net banking.
9. Can I apply for an IPO without a Demat account?
No, a Demat account is mandatory to apply for an IPO.
10. What is the DP name in an IPO application?
The DP name refers to the Depository Participant (broker) where your Demat account is held.
11. What is the DP ID in an IPO application?
The DP ID is the unique identification number of the Depository Participant where your Demat account is maintained.
12. How to apply for an IPO offline?
You need to fill out a physical IPO application form and submit it at the designated bank or broker’s office.
