How to Invest in an IPO – A Complete Guide





Investing in the stock market may be very difficult, especially if you don't know much about the firm. The only option for private companies to go public is through an IPO, or initial public offering. You should surely understand how to invest in an IPO if you want to grow alongside a firm. We have therefore prepared a thorough guide on IPO in order to make it simple for you to comprehend how you may invest in it.

But first, let us go through the benefits of investing in IPOs before we get into the specifics of how to do so.

Why Invest in IPOs

The explanations for why you ought to invest in IPOs are as follows:

  • IPO investments are the best choice for someone looking to make long-term investments in the market.
  • You are eligible to acquire shares in a reputable and promising company that might see its value increase in the upcoming years if you buy in the correct IPO at an early stage.
  • IPOs are the finest investment option for those looking to make a sophisticated type of investment. This is due to the fact that all public investors may see and understand their price per security.
Trading account and a Demat account are requirements for the applicant
the mobile phone associated with the UPI ID for the bank account
We'll discuss investing in IPOs now. To discover more about IPOs, read this blog post all the way through.


How to Invest in an IPO?

Here’s what all you need to do while investing in IPO:

Choose the IPO You Want to Invest On

The first and foremost thing to do is select the IPO you wish to invest in. You can even shortlist some of the companies and then go through various companies’ prospectuses. To find these prospectuses, you can go to the Securities & Exchange Board of India’s website (SEBI). After going through the prospectus, you will have a fair idea of the company’s business purpose and plan.

Account for Demat-Cum-Trading

To store your stocks and financial securities electronically, you must do this. If you don't already have one, you can open one by providing your address, Aadhaar card, PAN card, and ID evidence.

Application Procedure for Investing in an IPO

The next step is an application procedure. Either a trading account or a bank account can be used to apply for an IPO. Ensure that you are familiar with the Application Supported by Blocked Amount (ASAB) function after activating your trading-cum-demat account. The ASAB is required for applications to the IPO. The ASAB application, which is available in both demat and physical forms, allows you to authorise your bank to block money in your bank account. With this, you are not need to use or request checks. Simply enter your PAN, bank account number, demat account number, and bidding information on the application.