IPO investments are one of the very few events in the stock market that gain so much attention from new and professional investors alike. IPO investments, or Initial Public Offerings, are the first time a company publicly makes its shares available in the market. An IPO release is considered to be one of the most exciting times for investors. This is mainly because in today’s age, you can easily apply for an IPO with a few taps using your smartphone. Earlier, applying for an IPO used to be an extremely time-consuming process. Who likes filling out lengthy physical forms and standing in long queues at the bank, right?
However, with the rise of trading apps in India, applying to any IPOs has become an extremely easy process. Just search ‘trading apps India’ and you will get multiple options to choose from. But let’s first understand what an IPO is exactly and why an IPO release is considered to be one of the most exciting times in the share market.
What is an IPO?
An IPO stands for Initial Public Offering. And, as the name suggests, it is the first time a company makes its shares live to the public. It gives you the chance to become an early shareholder of a potentially high-growth company. However, the process of applying to IPOs is slightly different from regular online share trading. You need to apply for the IPO within the correct timeframe in order to get an allotment from the company.
In today’s digital age, you can complete the entire application process in just three simple steps:
Step 1: Open A Demat Account:
The very first step to apply for an IPO investment is to create a demat account and a trading account. The demat account helps to store your shares electronically, and the trading account allows you to buy and sell shares and participate in stock trading.
Step 2: Check For Upcoming IPOs
Once your account is active, open your trading app and navigate to the IPO section. You’ll find details such as:
- Company name
- Price band
- Opening and closing dates
- Minimum investment amount
- Lot size
Review the company’s financials, business model, and risk factors before applying. Many online trading apps also provide IPO analysis to help you decide.
Step 3: Apply Through UPI
Today, most of the IPO applications are processed through UPI payments. You simply select the IPO you want to apply for, enter your bidding details (number of lots you want and the price), add your UPI ID and approve the payment in the UPI app of your choice. Your designated amount of money will remain blocked in your account until the allotment results are announced.
Now, you simply have to wait until the allotment results are announced. If the shares are allotted to you, then they will be automatically transferred to your demat account. If the allotment was unsuccessful, then the blocked funds from your bank account will automatically be released.
Applying for IPO investments using trading apps has simplified what was once a complicated process. With the right stock market app, a valid Demat account, and a few simple steps, you can participate in India’s growing IPO market right from your phone. Whether you’re a new investor or a seasoned trader, this digital convenience lets you seize early opportunities and grow your wealth smarter and faster.
No Responses