IPO or Initial Public Offering is the process of releasing shares in public. IPO helps to gather capital from investors by issuing some shares. At the start, a company grows with its stakeholders, founders, and investors. At a point, when management realizes that the company has reached a stable position and needs more money to achieve new heights they offer a few shares to the public via IPO.
IPO is the first process to list a company in securities and exchange. There are multiple sources for applying for an IPO. I am using Groww in this blog. I will cover the full process from start to end so that you can apply for IPOs easily.
So let’s start!
- Go to Groww’s Official Website visit
- Register if you are a new user or log in If you are an existing user.
- On the below page, there will be a section on “Product and tools”. Click on IPO. IPO is the section where all new IPOs will be listed.
- There will be two sections here i.e., Open and Closed. Under open, those IPOs are listed where you can apply now or bidding is open. Under closed, those IPOs are listed, and that Bidding date is ended. Here if You want to Apply for Innova Captab IPO, click on the “Apply” Button.
- On the Right Hand Side, a Table will be opened. There is a dropdown here after Regular.
If you are a retail Investor, You can apply via two methods: As a regular or High Networth Individual.
Regular Investors are those individuals, NRIs, or HUFs who invest up to Rs. 2 lakhs in an IPO. There is a separate reserved quota for Retailer in Bidding.
High Network Individuals are those investors who are allowed to invest from Rs. 2 lakhs to Rs. 5 lakhs. These Investors fall under NII(Non-Institutional Investor). This is a separate quota for NII in IPOs.
Here, I am selecting as Regular. You can select High Network Individuals as per your choice. Click on Done.
- You can apply for IPO in lots. A lot is a bunch of shares. Like here 1 lot contains 33 shares. So you can buy IPO in lots i.e., 2 lots = 66 shares. The bid price is the price at which you are applying for an IPO. As you check the “At cutoff price” means you are applying for IPO at the uppermost price mentioned in the IPO description. It is advised to apply at the cutoff price while applying for IPO.
So 1 lot is taking Rs. 14,784. Click on Continue.
- Now, you have to mention your UPI ID. Then check for ‘Accept terms and conditions’. Click on “Apply for IPO“.
It will send a mandate request on your UPI App. Check the App and authorize the mandate request.
You will receive your mandate required in the market hour(9:15 AM to 3:30 PM). You can trace the progress of your application under the ‘status’ tab in Groww Platform.
There are certain features that groww offers to investors:
- 100% paperless IPO Application Process.
- Zero brokerage in IPO Investment.
- You can check the Information of all the latest IPOs including including details like lot size, listing date, open and close date, issue size, price band, DRHP, and RHP.
- Groww provides a tracker feature to get the latest updates about your application
