An initial public offer, or IPO, is the first sale of stock by a company to the public. It allows the firm to raise funds and you to buy shares before the normal stock trade opens.

How to Invest in IPO The thought of an IPO can be intimidating at first.” But the steps are clear. What you need are the right accounts, sound facts and a set budget. This guide explains in India.

1. Open Demat & Trading Account

IPO Shares are held in electronic form in a demat account. You need it to get shares at the . You can apply through a broker and trade shares after listing through a trading account.

Keep ready an active bank account and UPI ID. Your name, PAN, Bank data and Demat data should be same . Wrong data can cause your bid to fail.

2. Locate an IPO Open for Bidding

Head to your broker’s app or site and the IPO tab. You can also check the site of NSE or BSE. Kindly note the open and close dates, price band, lot size and listing date.

Do not confuse an open IPO with a new listing. People may search for “ipo listing today” to track a stock on its first day of trading. At that point the bid window may be shut. First, see the status of the issue.

3. Read the Offer Paper

Before you bid, read the red herring prospectus. It tells you what the company does. It includes details of sales, debt, risks, key staff, legal cases and use of funds.

Ask stupid questions. How does the company make money? Why does it need the IPO money? What could upset its plans? Has it changed its trend of sales or profit?

Issue Type: Bug Output is incorrect Issue Type: Bug A new issue raises money for the company. An offer for sale allows existing holders to sell shares. Some IPOs combine both routes.

4. Plan Your Budget

IPO bids are often placed in lots. Much has a fixed number of shares. Take the size of your lot and multiply it by your bid price. That amount may be blocked.

Choose funds that meet your goal and risk level. Don’t bid off of hype, group chats or a tonne of bids. A stock can go up or down once trade begins. No listing gain fixed.

5. Submit your bid

Log into your broker’s app or website. Click the IPO tab. Choose a topic. Enter number of lots and your bid amount Add your UPI ID and send the form.

In a book built IPO, retail bidders have the option of cut-off. This means you agree to pay the final issue price in the band set.

You may also use ASBA on the net banking site of an eligible bank. ASBA stands for Application Supported by Blocked Amount. It holds the amount of your bid in your bank account.

Bajaj Broking does this job through its IPO page, app and website. You can view open and planned issues, check key facts, select lots, add a UPI ID and submit the bid online.

6. Approve UPI Mandate

After you place a bid, your linked app will receive a UPI request. Check the company name and amount. Grants the request within the time specified.

The bank freezes the money. It doesn't charge it immediately. If you get shares the due sum is deducted . If no shares are received, the block is dropped;

Use your own UPI Id, Bank account. Bid may fail due to 3rd party id or bank account.

7. Check Allotment of Shares

The registrar will decide the share allotment once the issue is closed. Check the result on the registrar's site, or on the exchange site or your broker's platform.

A bid does not guarantee shares. If the demand is high you might get less shares than you asked for, or no shares. Check your bank account and demat account after the allotment date.

8. Follow Listing Day

If you get shares, these are sent to your demat account before listing. On the listing day, the stock begins trading on the designated exchange.

Watch the opening price, volume and company news. Do not go first alone. Relate your choice to your goal, time horizon and risk plan.

Key Risks to Consider

IPOs have market risk. The share price could fall after listing. A company could also face weak sales, debt stress, legal risk, or sector shifts.

Conclusion

How to invest in IPO: Need to know Demat account, bank account and valid UPI ID. Read the offer paper Set a budget Place the bid Approve UPI request Allotment and listing to be monitored closely.

Bajaj Broking can help you to see IPO Facts and apply online. Every bid still has to be based on the firm’s facts, your goal, and your risk limit.

How to Invest in an IPO: A Step-by-Step Guide for First-Time Investors

Shares are held in electronic form in a demat account. You need it to get shares at the IPO.