From Start to Finish: A Beginner’s Journey through IPO Subscription

Investing in Initial Public Offerings (IPOs) can be an exciting opportunity to become an early shareholder in a company. To successfully participate in an IPO as a first-time applicant, you need a clear understanding of the process and requirements. This guide will provide a step-by-step approach, including accessing the current IPO list and opening a Demat account online.

Step 1: Accessing the Current IPO List

• Research IPO News: Stay updated with financial news sources, websites, and newspapers that regularly publish information about upcoming IPOs. This will help you identify companies planning to go public.
• Visit IPO Websites: Government agencies and stock exchanges often maintain dedicated sections on their websites listing upcoming IPOs. These sources provide detailed information about the companies, their financials, and the IPO schedule.
• Consult Brokerage Firms: Contact brokerage firms or financial advisors who can provide insights into the latest IPO offerings. They can also assist you in the application process.
• Financial News Apps: Utilise financial news apps and websites that offer real-time updates on IPOs, including subscription opening and closing dates.

Step 2: Opening a Demat Account Online

• Choose a Depository Participant (DP): Select a reputable Depository Participant, an institution that facilitates the holding and trading of shares in electronic form. Verify they offer online Demat account opening services.
• Visit the DP’s Website: Go to the website of the chosen DP and locate the section for opening a Demat account.
• Fill in the Application Form: Complete the online application form with accurate personal and financial information. Ensure you have the necessary documents, including proof of identity, address, and a passport-sized photograph.
• Verification Process: The DP will verify your documents and information provided in the application. This may involve in-person verification or video KYC.
• Receive Your Demat Account Details: Once the verification is successful, you will receive your Demat Account details, including the Demat Account Number (DP ID) and Client ID.

Step 3: Applying for an IPO

• Access the IPO Application Form: Keep an eye on the IPOs you wish to apply for. The application forms are available through various channels, including your DP’s website, physical application forms from designated centres, and online trading platforms.
• Fill the Application Form: Provide accurate information in the IPO application form, including your Demat account details. Specify the number of shares you want to apply for and the bid price per the IPO’s guidelines.
• Payment: Make the payment for your IPO application. This can typically be done through net banking, UPI, or a bank cheque, as specified in the IPO’s prospectus.
• Submit the Application: Submit the completed application form to your DP or through the designated channels. Ensure you meet the application submission deadlines specified in the IPO’s prospectus.

Step 4: Checking Allotment Status

• Wait for Allotment: After the IPO subscription period ends, wait for the allotment process. This typically involves a random lottery system if the IPO is oversubscribed.
• Check Allotment Status: You can check your IPO allotment status online through the IPO registrar’s website or the DP’s online portal. You will need your PAN (Permanent Account Number) and application number to check the status.
• Refund or Shares: Depending on the allotment, you will either receive the shares in your Demat account or a refund of the application money in case of non-allotment.

Step 5: Post-Allotment Actions

• Dematerialisation: If you receive IPO shares, they will be credited to your Demat account. Ensure your Demat account is active and ready to receive the shares.
• Monitor Share Price: Keep a close eye on the share price once the IPO shares are listed on the stock exchange. Decide whether you want to hold or sell them based on your investment strategy.
• Pay Taxes: Be aware of the tax implications of your IPO investments. Consult with a tax advisor if necessary.

Participating in IPOs as a first-time applicant can be a rewarding experience when approached with diligence and careful planning. Start by staying informed about the current IPO list through reliable sources, and consider opening a Demat account online to manage your electronic shareholdings.

Remember to fill out IPO application forms accurately, follow the payment guidelines, and check your allotment status post-subscription. IPOs provide an opportunity to become part of a company’s growth story, but it’s essential to conduct thorough research and stay informed throughout the process.