IPO is Now Online!

Jan 10, 2020 10:45 AM 60547 views

Do you know why organizations go public? Did you know that procedure is called an Initial Public Offering (IPO)? "An IPO is the process of offering shares of a private corporation to the public in a new stock issuance." This allows organizations to raise capital from public investors. Until now individuals had to apply for an IPO through their banks however recent development from the SEBI now enables individuals to apply for an IPO online. Yes, you read that right! IIFL securities are now one of the leaders in allowing their users to apply for IPO’s through our web platform. Support form UPI 2.0 will eradicate the submission of a physical form and similar factors that consume excessive time. The online application is very simple, all you have to do is enter your UPI ID, enter a quantity and lastly a bid price. We have explained the same in detail below. 

Segmentation is as follows:

  • Retail customers - Below 2 lakhs (UPI based online application) 
  • HNI customers - Above 2 lakhs (ASBA, existing offline process) 

Note: The online process is only applicable for all applications having amounts below ₹2,00,000 (2 lakhs).

How to apply

First and foremost, it is integral that you login using your credentials and maintain a sufficient balance in your bank account to apply for an IPO as acceptance of your online application will block the amount on the UPI application. 
Note: Please ensure your bank account is mapped to your UPI ID. 

Upon clicking on the IPO tab you will be able to see the open issues section that indicates IPO's that are accepting bid applications.

After clicking on the apply button, you will be redirected to the following page. We are using CDSL's example in the images below.

Over here you will have to enter the following details UPI ID, bid price and quantity. Moreover, the open date, close date, issue size and lot size can be viewed on the top of the page. Remember, it is integral to look at the high and low price before making a bid. Clicking on the “cut off” box will ensure the price is entered automatically, dependent on the highest bid price. If the box is not clicked a user can select their own price as well. In addition, multiple bids can be placed for a singular stock. Acceptance will be determined by the exchange the stock is going to be listed on. 

Selecting your status on the top of the page plays a critical role in allocating shares. A shareholder may have the ability to get a higher number of shares allotted in comparison to an individual investor. 

After successfully filling in all the details and clicking on submit; a mandate request will appear on the UPI application (it may take up to 4-6 hours) shown in the image above. To accept this request you will have to login to the UPI application. Once the mandate request has been accepted the funds will be blocked in your bank account through UPI until the date of allotment, which is usually 48 hours prior to the listing. In the case, where you have received an allotment the money will be debited from your bank account and the shares will be added to your demat account. Blocked funds will be released on the end date or expiry of the mandate if an individual does not receive an allotment.
Note: An SMS confirmation will be sent out to the client's registered mobile number from IIFL as an acknowledgment in receiving your bid. 

Click here to get a greater understanding of how the allotment process takes place. 

Mobile App View for IPO

After logging into the IIFL Markets application in please click on the IPO section in the main menu. 


Once you click on the IPO section, you will be redirected to the following pages that will enable you to apply for the IPO. The steps mentioned above have to be repeated for mobile as well.

 

Upon clicking Pay Now a mandate request will appear on the UPI app (it may take up to 4-6 hours). Once the mandate request has been accepted the funds will be blocked in your bank account through UPI until the date of allotment. 

Please click here to place your IPO bid!

Tags: #Finance

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