#ipos online

[ritashahus]

Upcoming IPO 2020: Investing in new upcoming IPOs can be a clever thing for informed investors. Get insights on the latest upcoming IPO list in just a few clicks. Invest in IPO online and keep a track of new, closed and upcoming IPOs at Motilal Oswal. Open demat account and start investing in IPOs today!

[reenadass]

IPOs online | Looking for New IPOs in the market? Invest in IPOs online with Motilal Oswal. Also get a detailed report on the latest IPOs listed in both NSE and BSE stock Markets.

[ikshitija]

How to Apply for IPO Using UPI ID?

As a wise investor, you want to buy a stock at the right price; essentially, because if you purchase the asset at the right price, then only you maximize your earnings by holding it for a long time and then eventually selling upon price rise. But how would you know the right price of a particular share? The best method to find that is via an Initial Public Offering (IPO).  

When the shares of a private company are traded on the stock exchange for the first time, it is known as an IPO. You can participate in IPOs online using your Unified Payments Interface (UPI) ID. Yes, the same ID that you use to transfer funds and shop online can also be used for a new IPO application.

Here is all you need to know about IPO with UPI ID:

What is UPI?

UPI is an immediate, real-time payment platform developed by the National Payments Corporation of India (NCPI). UPI allows the transfer of funds between two bank accounts in no time. However, to use this facility, you need to create a UPI ID. You can use a UPI-enabled bank application or an authorised third-party app like BHIM app, PhonePe, Google Pay, Paytm, etc. to create your UPI ID.

How can you use your UPI ID to apply for IPOs online?

To make the IPOs online more secure, transparent and straightforward, the Securities Exchange Board of India (SEBI) has made it mandatory for retail investors to invest in new IPOs online through their UPI ID. You can select your UPI ID or instruct your broker to use this ID as the payment medium on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). 

You can use these steps below to apply for IPO with UPI ID:

Download any UPI 2.0 enabled application

Generate a UPI ID and mPIN for your bank account associated with your trading account

Login to your broker’s application and select an open or upcoming IPO

Opt for the IPO you wish to participate in

Read all terms and details of the IPO, including opening and closing dates, total issue, lot size, etc. 

Enter the valid UPI ID associated bank account and subsequent trading account

Mention the number of stocks you wish to buy

If you want to buy at the cut-off price, tick the checkbox below. In case you wish for a different price, enter the new price

Read the full agreement and submit the document

Upon successful submission, a mandate request is sent to the UPI app

Once you accept the mandate received, your linked account will be blocked by the total funds required to purchase the number of lots specified in the application

If your IPO bid is successful, the blocked funds are deducted from your bank account, and your Demat account is credited with the number of shares

In case shares are not allotted, the blocked money is released on the date of new IPO allotment

SEBI launched the facility to apply for IPOs online using UPI ID in 2019 to make use of its increasing regional penetration and simple user interface. The introduction of UPI in the IPO arena has enhanced the reach of public offerings.