In this article, you will discover the exact process of how to buy an IPO with a Zerodha account. However, before we begin, let us learn and understand the basics know-how.
Since its inception in August 2010, Zerodha is the most extensive stock brokering corporation in India. Its highlight is the low-cost brokerage for trading.
Zerodha, the premium broker, contributes to depository services and mutual funds. It is the most innovative stockbroker of modern times. By spending a large amount of capital on technology- Zerodha is attempting to make trading better. They are making investing accessible, reliable, quick, and extremely affordable.
Zerodha has developed an in-house exchanging platform, trading instruments, back office, partner portals, discussion forums, specialized interpretation tools, and API for integrating its exchanging platform to other application developers.
Zerodha is amongst very rare brokers who accepted the challenge to make tools from scratch to feed to the need of high-frequency trades-men, algo traders, retail periodically stock market investors, and amateurs. It does not charge any brokerage for equity & mutual fund expenses. It requires a flat ₹20 per trade for intraday, F&O, currency, and commodity contracts across NSE, BSE, and MCX.
What is an IPO?
It stands for Initial Public Offering.
An IPO is a process by which a private company issues its first shares of stock for public sale. This is also known as ‘Going public.’
An initial public offering (IPO) refers to the process of offering shares of a private company to the people in a different stock issuance. Public share issuance enables a firm to increase capital from public investors. The shift from a private to a public organization can be an extraordinary chance for private investors to wholly receive profits from their investment as it typically involves share premiums for current private investors. Meantime, it also enables public investors to join in the offering.
The Purpose of an IPO
The two main goals for a firm to launch an IPO is to boost its capital and to enhance previous investors. Those are not independent.
By going public, a firm gets its way to the entire experience of the potential investments. This can give it a passage to considerably more funds than most firms can get by individual shareholders or investment financiers.
Typically a firm might begin in IPO when it reaches a degree in whatever it can achieve through private capital and will apply to the funds to develop or remain growing.
Before You Apply For an IPO
Clearly, you will require a Zerodha account if you want to apply to IPOs with Zerodha.
Next, you need a UPI account. And this is nothing unusual. These days everyone uses UPI to get quick and stable payments.
Zerodha offers Online IPO Applications.
Zerodha clients can apply for an IPO using UPI (Unified Payment Interface). While the method is not as simple as the ASBA IPO application through the 3-in-1 account, the Zerodha UPI IPO application allows an alternative to Zerodha customers to apply in IPO online.
Zerodha started its Online IPO application services on August 6, 2019. After that, it became the largest broker by the amount of IPO applications being applied.
Zerodha IPO Steps
The Zerodha IPO application method step by step guide is explained below:
1. Download a UPI application
You can use any enabled app to apply for an IPO through Zerodha. Install one of the supported UPI applications and follow the subsequent steps to apply for an IPO in Zerodha.
2. Login to Zerodha
Login to Console and select ‘IPO’ in the ‘Portfolio’ menu.
3. Pick your IPO
Choose the IPO you desire to apply for from the menu of open issues.
4. Insert your UPI
The UPI ID is verified to authenticate its validity. Although, they will not be able to review the aspects of the bank account connected to the UPI ID. You should make sure this UPI ID is linked to your own bank account. The IPO form is likely to get denied if the person who is implementing is distinct from the one whose bank account is utilized to apply.
5. Place your bid(s)
Pick the investor type for your application. While putting the bids, the only amount that is a multiple of the lot size is allowed. If you want to apply at the cut-off price, simply click on the checkbox next to ‘Cutoff-price’. If you need to place a bid at a varying price, you can do so by opening a price in the ‘Price’ field
6. Provide documents and submit
Once you’ve accomplished all these measures, click on the checkbox to prove that you have understood the RHP and additional documents and click on submit.
7. Accept mandate in UPI
Accept the mandate request on your UPI Application.
8. You will receive a text of confirmation
After submitting the IPO bid, you will get a text message from the market confirming your application. Meantime, to monitor the status of your order you can choose the IPO you have applied for and you will be able to view the last refreshed bids in your application.
Zerodha is continuously developing to provide a more reliable investing and dealing facility to its consumer. The process of how to buy an IPO with Zerodha is a lot easier now. You should surely check it out. Moreover, contact investallign if you meet any challenges in applying for IPO using the Zerodha account.