Know How to Invest in IPO (Initial Public Offering) - IPOGyan

1. Know How to Invest in IPO (Initial Public Offering) Ever since IPO investment is on the buzz, there is much talk about it in the town. As an investment consultant, it’s time to make the investors aware of how one can invest in IPO and its varied Investment opportunities in India. What is IPO after all? Initial Public Offering is well-known as IPO. When the private companies decide to go public through trading of shares to raise funds in the market, it is said to go IPO. The next big question arises, how to invest in IPO? Investing in IPO is no rocket science. Like any other decision of life, investing in IPO also needs planning. Decision-Making: You must know the credibility of the company you wish to invest in. Visit the SEBI’s (Securities and Exchange Board of India) website. You will get to know about the plan of the companies in shape. Arrange For Funds If you thought IPO investment was meant for only high-profile investors, you have mistaken. There are banks and non-financial companies who lend money for investment purpose. But, do check on the interest rates! Open Your Demat-Cum-Trading Account Opening a demat-cum-trading account will enable you to store the stocks and ease trading of financial securities. You need PAN card, Aadhar card, address proof, and identity proof. You can or ask your stockbroker to do the needful for you.

2. Apply For IPO Now that you are done at your end; it’s time to apply for IPO. It can take place thorough demat- cum-trading account. These days most of the transactions take place with the use of ASBA (Application Supported by Blocked Amount). Instead of demand drafts or cheques, ASBA authorizes the bank to keep that amount aside for investing in IPO. Thus, to use ASBA, bid the details of the amount along with your bank account number, PAN card details, and demat account number for the application. Your Chance To Bid Starts Now The company sets price band where the upper limit is known as a cap price and lower as a floor price. Bidding of shares takes place between the two limits. As per the lot size (the least number of shares for application in IPO) mentioned in the prospectus, an investor needs to bid. Tip to Ponder: Always keep the set money aside as blocked amount. Till the time the money is not in use, it starts fetching interest anyways. The Final Stage Of Allotment Application for IPO shares does not mean allotment of shares. Allotment takes place when you get a CAN (Confirmatory Allotment Note) after the closure of the IPO process. Book-built is the name of this process. On allotment of shares, they are credited to the demat account. You are good to trade once the listing of shares is done on stock exchanges for IPO Stock Market Investment. Hope this article has helped to solve the questions in your mind. Always trust the reliable source and agents for all the IPO investment needs. Investment opportunities in India with IPO are booming and are the right time to take advantage of this opportunity. Original Source: https://ipogyan.com/know-how-to-invest-in-ipo-initial-public-offering/