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How to Apply for the Best Upcoming IPO and Check its Allotment Status
19 Jun 2023

With the slew of initial public offerings from companies lined up, you might be tempted to invest in one or all of them. However, before you make a decision on whether you wish to invest in an IPO or not, it is crucial for you to learn how to apply for the best upcoming IPOs. Additionally, you also need to know how to check whether the shares that you’ve applied for have been allotted to you or not. Continue reading the article to find out more. 

How to apply for an upcoming IPO

There are two primary ways to apply for an initial public offering of a company - via trading account or via ASBA. Let’s take a quick look at both of these methods. 

Via Trading Account 

If you have a trading and demat account with a stock broker, you can quickly apply for the public issue of a company. All that you need to do is follow the steps outlined below. 

  • Step 1: Log into your trading account using your user credentials. 
  • Step 2: Once you’ve done that, make your way over to the IPO section of the trading account.
  • Step 3: Then, choose the IPO that you wish to invest in. 
  • Step 4: Fill the IPO application form by entering details like the number of lots that you want to apply for and the IPO price. 
  • Step 5: Enter your UPI ID at the bottom and submit the application. 
  • Step 6: You will receive a UPI mandate request for an amount that’s equivalent to the number of lots that you applied for multiplied by your IPO bid price. 
  • Step 7: Approve the UPI mandate request via a UPI app. 

That’s it. You’ve successfully applied for an upcoming IPO. 

Via ASBA

If you don’t have a trading account with a stock broker, but possess a demat account, you can still apply for the best upcoming IPOs. ASBA, also known as Application Supported by Blocked Amount, is a method devised by the SEBI to make it easier for individuals to apply for a public issue using their bank’s internet banking system. Here’s what you would have to do. 

  • Step 1: Log into your bank’s internet banking portal using your credentials.
  • Step 2: Navigate to the ASBA section. 
  • Step 3: Select the IPO that you wish to apply for.
  • Step 4: Fill the IPO application form by entering details such as your PAN, number of lots and the bid price. 
  • Step 5: Submit the application form. 

When you apply for an IPO via the ASBA method, the requisite amount will be blocked by the bank. If the shares are allotted to you, the amount will be withdrawn from your account. If not, the blocked amount will be released by the bank and can be used by you.

How to check the IPO allotment status?

Once you’ve applied for an upcoming IPO, you might want to know whether the shares that you applied for have been allotted to you or not. Fortunately, determining the IPO allotment status is very easy. The steps that you would have to follow for the same have been outlined below. 

  • Step 1: Visit the website of the registrar of the IPO that you applied for. 
  • Step 2: Navigate to the ‘IPO allotment status’ section of the webpage. 
  • Step 3: Select the company whose public issue you subscribed for. 
  • Step 4: Enter your PAN or the IPO application number in the relevant field and submit. 

The IPO allotment status will be displayed instantly. If you have been allotted shares, keep an eye on your demat account to ensure that the shares are credited in a timely manner. 

Conclusion

Now that you know how to apply for an upcoming IPO and check its allotment status, go ahead and give it a try. Investing in an IPO has the potential to give you stellar returns in the long-run. That said, keep in mind that you need to first open a demat account before you invest in an IPO. If you don’t have one, get in touch with Motilal Oswal today to open it for free. 

 

Related articles: 5 Tips for Investing In IPOs | What's the big deal about IPOs | Clearing the confusion from IPOs | IPO in India- The future looks bright | Upcoming IPO

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