How Can I Apply For An IPO Online, And Which Platform Is Best?

Applying for an Initial Public Offering (IPO) online is a simple process that can be done through several platforms. The Securities and Exchange Board of India (SEBI) has made it easier for retail investors to participate in IPOs by allowing online applications, mainly through ASBA (Application Supported by Blocked Amount), which helps prevent the misuse of funds and ensures transparency.

Here are the steps to apply for an IPO online:

1. Eligibility:

Ensure that you are eligible to apply for the IPO. You need a Demat account and a Bank Account linked to it, along with an active PAN card.

2. Choose an Online Platform:

You can apply for an IPO through your stockbroker’s platform, a banking platform, or through the BSE and NSE websites. The platform should support ASBA (Application Supported by Blocked Amount), a SEBI-approved process.

3. Steps to Apply:

Log In: Access the chosen platform (e.g., your stockbroker’s app or bank’s trading platform).

Select the IPO: Browse the IPO section and select the offering you wish to apply for.

Enter Details: Fill in your personal details (e.g., PAN, Demat account number, etc.) and the quantity of shares you want to apply for.

Bid Price and Quantity: You will need to choose a bid price (if the IPO has a price band) and the number of shares you want to purchase.

Payment: ASBA will block the amount in your bank account for the shares applied. The amount will only be debited if the IPO is allotted to you.

Confirm Application: After reviewing the details, submit your application. You will receive a confirmation of your application.

4. Best Platforms to Apply for IPO:

There are multiple platforms where you can apply for IPOs online, but here are some of the best options:

Stockbrokers and Brokerage Firms:

• Zerodha: Zerodha’s Kite platform is a popular choice for IPO applications due to its user-friendly interface and seamless process.
• Upstox: Known for its quick and easy IPO application process, Upstox allows investors to apply directly through its platform.
• Angel One (formerly Angel Broking): A leading platform for IPO applications, Angel One offers a simple process for applying through both the mobile app and website.

Banks:

Many banks also provide IPO application services:

• HDFC Bank: HDFC Bank offers an easy IPO application process through their NetBanking platform or mobile app.
• ICICI Bank: ICICI Bank offers IPO applications through their ICICI Direct platform, which is integrated with their banking services.
• Axis Bank: Axis Bank allows investors to apply for IPOs via AxisDirect, a trusted platform for retail investors.

BSE/NSE Website:

You can also apply directly via the official BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) websites. Both exchanges offer a direct link to IPO applications through the ASBA mechanism.

5. Advantages of Applying Through These Platforms:

• Convenience: You can apply from anywhere at any time using your computer or mobile device.
• Real-Time Updates: Most platforms provide real-time updates about the IPO, including the status of your application and the allotment process.
• ASBA Facility: ASBA ensures that the amount is only blocked in your bank account, and no actual payment is made until shares are allotted.

6. Tracking Your Application:

After applying, you can track your IPO application status on the platform you used. Additionally, after the IPO allotment, you will be notified about the number of shares allotted to you, if any. If not allotted, the blocked amount will be released back into your account.

Example:

If you want to apply for an IPO, you can log in to your Zerodha account (a popular stockbroker), go to the IPO section, select the desired IPO, fill in the details, and submit your application. The funds will be blocked in your linked bank account via ASBA. Once the allotment is done, the shares will appear in your Demat account.

In conclusion, applying for an IPO online is easy through platforms like Zerodha, Upstox, and Angel One, or through banks like HDFC and ICICI. All these platforms facilitate the ASBA process, making it secure and efficient.