IPOs or Initial Public Offerings are top rankers of the stock market trends. In India, we see various companies going public and releasing new IPO. So why is it important for you to apply for the IPO application? <\/p>\n\n\n\n
So, let\u2019s look at the requirements for the application of an IPO. <\/p>\n\n\n\n
Demat Account<\/strong><\/p>\n\n\n\n If you purchased company shares, you\u2019d receive a physical certificate of the share, which you could trade later. But today, companies allot shares in electronic format. Thus, you need an electronic vault to keep your shares. Therefore, a Demat account is necessary, and you can\u2019t participate in an IPO without a Demat account<\/mark><\/a>.\u00a0<\/p>\n\n\n\n Note – You can open a Demat account easily on the Shoonya app, a zero brokerage Multi-asset trading platform.\u00a0<\/em><\/p>\n\n\n\n Two depositories manage Demat accounts, i.e., National Securities Depository Limited and Central Depository Service Limited (NSDL and CDSL). <\/p>\n\n\n\n Once you open a Demat account, your broker sends you a CMR or Client Master Report file. This CMR file has two important components. <\/p>\n\n\n\n IPO Application Process<\/strong><\/p>\n\n\n\n You can apply for an IPO through net banking. Most banks like Axis bank, ICICI bank, HDFC bank etc., offer IPO application services in their net banking option. <\/p>\n\n\n\n Here, you\u2019d find two different categories, namely retail and HNI. <\/p>\n\n\n\n Retail applicants are the applicants whose investment is less than 2 lakhs in an IPO. <\/p>\n\n\n\n As the name suggests, HNI applicants invest in big amounts. Their investment is more than 2 lakhs. <\/p>\n\n\n\n You can select your bidding price for the IPO if you are a retail investor. HNI, on the other hand, always has to bid on the highest price.<\/em><\/p>\n\n\n\n After selecting the bidding price, you must choose the number of lots you want to buy. A lot size is the minimum number of shares you need to purchase in an IPO. <\/p>\n\n\n\n After filling in the details of the share, you also need to fill in the depository details. These details are <\/p>\n\n\n\n Finally, after this, you can submit your application. Your bid amount is put on hold until the last day of the IPO. When the results are declared, the company either allots you shares or refunds your amount.<\/p>\n\n\n\n Conclusion<\/strong><\/p>\n\n\n\n The IPO application process is easy. First, must have a Demat account and apply for IPO online. Then, you need to fill in all information correctly to save your application from getting overruled. You can check, Shoonya<\/mark><\/a>, the best website for IPO information.<\/p>\n\r\n\n
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