How to invest in IPO Online

Posted on 15th Dec 2016
by TopShareBrokers Team


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How to invest in IPO - Online

In this article, we will be discussing how to invest in IPOs online, which institutions support IPO investment, other ways than online to apply for IPOs, charges to apply in IPOs, checking allotment status online etc.

What type of account I need to invest in IPO?

To invest in IPO, you just need a bank account and demat account. To sell the stocks in your holdings you need Trading account which is post IPO allotment process.

How to apply in IPO?

You can invest in IPO via Online or Offline mode(Physical Form).

  1. With your Online Bank account directly.
  2. By submitting physical form to your bank branch.
  3. Online with Broker Site – Not valid any more after ASBA Process.
  4. By submitting physical form to your broker.

List of Current and Upcoming IPO's in India Stock Market

What is ASBA process and how its work in IPO investment?

Full form of ASBA is “Application Supported by Blocked Amount” Procedure. ASBA provides an alternative mode of payment in issues whereby the application money remains in the investor's account till finalization of basis of allotment in the issue.

Process flow how ASBA works:

Online IPO Investment-ASBA Process

  • IPO investor can apply in IPO using 2 modes, first mode is electronic application submission via ASBA form and second mode is physical form submission at SCSB branches.
  • After submitting application self-certified syndicate banks (SCSB’s) receive your application, they validate your application with reference to your PAN number and block the fund in investors account.
  • Now this application will upload to NSC/BSE system via SCSB.
  • After that NSE/BSE consolidate all the request and submit to registrar. After that registrar complete allotment process (T* + 9 Days)[T* = Issue close day] and instruct SCSB’s to
    • Success of allotment, transfer money to issuers account, and shares are credited to Investors DP account.
    • Rejected/Unsuccessful application – Release money to investor account.

How can I apply online in IPO with my bank account?

Most of the national banks in India provide forms to apply in IPOs. Under ASBA (Application supported Block Amount) facility for applying IPOs, investors can apply in any public/rights issues by using his online bank account.  The list of ASBA participating bank are provided in below section.

Lets see example how to apply IPO’s using ICICI online banking:

  • Login to ICICIbank.com with your net banking user id and password.
  • Then go to INVESTMENTS & INSURANCE > Invest Online
  • ICICI Bank Online IPO Investment

  • Then go to tab > IPO Online

    On this page you can see all open IPO’s,  select the IPO which you want to Invest.

  • ICICI Bank Online IPO Investment

  • You need to select your DP Type – CDSL or NSDL, Provide your DP Account#, DP Name, Quantity, Price in Rs and Cut Off Price check box and then click on Submit button.
  • ICICI Bank Online IPO Investment

  • Once you submit, this page you direct you to transfer fund in IPO account with the total amount of investment.
  • ICICI Bank Online IPO Investment- Fund Transfer

  • After performing fund processing, you can see status on Order Book. – E-IPO Order Book:
  • ICICI Bank Online IPO Investment- Order Status

Similar process is available with all major banks like SBI Online, HDFC Bank, AXIS bank -  online banking site under investment option.

Step by Step guide to apply in IPO using online bank account: >> Guide

How can I apply in IPOs by physically submitting application to bank branch office?

Applying in IPOs basically doesn’t need a broker. You just need a demat account with any broker. Under ASBA (Application supported Block Amount) facility for applying IPOs, investors can apply in any public/rights issues by using their bank account. 

The steps to apply in IPOs using your bank account is as follows:

  • Go to the NSE/BSE website and check if your bank is part of ASBA participating bankers to IPO. All major banks are part of this. The list of available ASBA participating banks branches is available on IPO detail webpage.
  • If your bank account is part of ASBA participating, then download blank IPO Application form. The form is available on same IPO detail webpage where you get the list of participating banks.
  • NSE Open IPO Forms Download

  • Fill the downloaded editable PDF with information like name of the applicant, PAN number, demat account number, bid quantity, bid price and other relevant details.
  • IPO Application Forms

    IPO Application Forms

  • Submit the application form at the designated branches of the bank in your town.
  • Find a sample form for applying in IPO. >>Download

Step by Step guide to invest in IPO by submitting physical application form: >> Guide

Which banks provide ASBA facility in India?

List of Self Certified Syndicate Banks (SCSBs) for Syndicate ASBA.

List of Self Certified Syndicate Banks (SCSBs) for Syndicate ASBA
Seq # Bank Name Branch Detail
1 Allahabad Bank Branches
2 Andhra Bank Branches
3 Axis Bank Branches
4 Bank of Baroda Branches
5 Bank of India Branches
6 Bank of Maharashtra Branches
7 Barclays Bank Branches
8 BNP Paribas Branches
9 Canara Bank Branches
10 Central Bank of India Branches
11 Citibank Branches
12 City Union Bank Branches
13 Corporation Bank Branches
14 DBS Bank Branches
15 Dena Bank Branches
16 Deutsche Bank Branches
17 HDFC Bank Branches
18 HSBC Branches
19 ICICI Bank Branches
20 IDBI Bank Branches
21 Indian Bank Branches
22 Indian Overseas Bank Branches
23 Indusind Bank Branches
24 ING Vysya Bank Branches
25 J P Morgan Chase Bank, N.A. Branches
26 Janata Sahakari Bank Branches
27 Karnataka Bank Branches
28 Karur Vysya Bank Branches
29 Kotak Mahindra Bank Branches
30 Nutan Nagrik Sahakari Bank Branches
31 Oriental Bank of Commerce Branches
32 output.txt Branches
33 Punjab National Bank Branches
34 Rajkot Nagarik Sahakari Bank Ltdx Branches
35 South Indian Bank Branches
36 Standard Chartered Bank Branches
37 State Bank of Bikaner and Jaipur Branches
38 State Bank of Hyderabad Branches
39 State Bank of India Branches
40 State Bank of Mysore Branches
41 State Bank of Patiala Branches
42 State Bank of Travancore Branches
43 Syndicate Bank Branches
44 Tamilnad Mercantile Bank Branches
45 The Ahmedabad Mercantile Co-Op. Bank Branches
46 The Federal Bank Branches
47 The Kalupur Commercial Co-Operative Bank Branches
48 The Lakshmi Vilas Bank Branches
49 The Saraswat Co-operative Bank Branches
50 The Surat Peoples Co-op Bank Branches
51 UCO Bank Branches
52 Union Bank of India Branches
53 United Bank of India Branches
54 Vijaya Bank Branches
55 Yes Bank Branches

To get the branch details in your city, please refer NSE Link or BSE Link.

How can I apply in IPOs online with broker site?

Note: This process is only valid with 3 in 1 account with broker, not valid with any other full service brokers who provide 2 in 1 service.

Most of the full service brokers in India offer IPO Investment facility online. The process to apply in IPOs online is extremely simple and fast. All you need is to have a trading account with full service brokers who provide online IPO Investment facility. If the broker is a 3-in-1 service provider i.e. bank +demat+ trading  account than that will be  even better because the transaction between the bank account and your online IPO account will be seamless.

Generally these are the basic steps you have to follow to apply for IPOs online:

  • Login to your account.
  • Go to the IPO page.
  • Select the IPO you would like to apply for.
  • Fill the quantity and price and then submit your request.
  • Allocate the required fund.
  • Check the order book for application no and status.

Why most of the Discount Brokers does not provide IPO Investment facility?

Discount Brokers run on low margin business. They try to cut down their operational cost as much as possible and transfer the benefit to their customers by charging very low brokerage in the form of flat fee irrespective of the size and volume of trade.

IPO investment facility needs a broker to be registered as a distributor of IPOs. They have to get license to be authorized distributor of IPO. The commission they get on each application submitted through them is so low that brokers won’t find it much interesting in terms of financial benefits to be a distributor of IPOs.

Discount Brokers like Zerodha, ProStocks, RKSV, SAS Online, TradeSmartOnline are among  a few who do not offer IPO investment facility.

I have an account with discount broker and want to apply in IPO , what is the best way to do so?

As you have trading and demat account with Discount Brokers like Zerodha, RKSV, Upstox, ProStocks, SAS Online, Trade Smart Online, SAMCO and So on, you will not get online IPO Investment feature with your broker portal, In such case, you can use your online banking to invest in IPO. Go to your bank online banking site, under investment option, invest in IPO with your discount broker demat account. After allotment, your shares are going to deposit in your give demat account and you can sell them from your discount broker account.

What are the charges to apply in IPOs through a broker?

Applying for IPOs through broker’s online platform is completely free. You do not pay any fee, charges or taxes to apply for IPO shares.

However you have to pay brokerage and taxes when you sell the shares allocated to you through IPO. The charges are same as you sell any shares bought directly from the stock market.

How can I check IPO allotment status on my broker’s website?

The IPO allotment status on broker’s website is updated only after the shares are transferred to your demat account (usually a day before IPO shares listing). The shares in your demat account will then be available to you to sell them on date of listing at the respective exchanges.

You can check the IPO Allotment Status directly on the broker’s website. Usually, the steps are as follows:

  • Login to your account.
  • Go to IPO page and look for order book column and click on it.
  • Enter the required fields. Click 'View' button.
  • Find the IPO Allotment Status.

Can I apply in IPOs using call and trade facility with my broker?

Mostly but not all the brokers provide call and trade facility to apply for IPOs.

It is better to check with your broker specifically on this without making any assumptions.

What is SME IPOs?

Stock Exchanges of India NSE And BSE provide separate platform for small and medium enterprises (SMEs) to go public by issuing IPOs  to raise equity capital for their growth and expansion.  These IPOs by SMEs are called SME IPOs.

Bombay Stock Exchange’s platform for SME IPO is called BSE SME Platform.

National Stock Exchange’s platform for SME IPO is called NSE EMERGE platform.

SME IPO's are not available online. You have to fill and sign the forms to apply in SME IPO's.

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  2016-12-15T17:28:23+00:00

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