Learn Everything About New Initial Public Offering (IPO)

new ipo investment

The world of Initial Public Offerings (IPOs) has presented alluring opportunities for investors, particularly given the backdrop of impressive success stories from previous years’ IPO offerings.

IPOs have emerged as potent avenues for profit generation. As we go through the various facets of how to invest in an IPO, this guide will help investors with pivotal insights and detailed perspectives on the IPO investment process.

IPO: A Public Transition

The IPO, or Initial Public Offering, signifies a pivotal transition of a company from being privately held to becoming a publicly traded entity. In an new IPO, company owners seeking to go public embark on a journey to list their entity on stock exchanges, such as BSE or NSE. They do so while making a portion of the company’s shares accessible to public investors to invest in. 

On the other hand, investors subscribe to these shares during the IPO window, anticipating profitable listings and fruitful returns.

Pre-requisites for IPO Investment

Engaging in IPO investments necessitates certain foundational elements:

Demat Account:

An online account that holds your shares post-allotment.

Trading Account:

A mandatory account enabling online IPO applications, obtainable from any SEBI-certified Depository Participant.


Essential for payment, either by utilising an existing UPI ID or creating a new one through the BHIM app.

Bank Account:

Ensuring a hassle-free payment for shares applied through the ASBA (Application Supported by Blocked Amount) system simplifies the payment process by blocking the bid amount in the bank account, deducting only upon allotment.

Eligibility for IPO Application

Investing in an IPO, while relatively straightforward, demands adherence to specific eligibility parameters. This includes being a SEBI-approved investor, possessing requisite Demat and Trading accounts, holding a valid Permanent Account Number (PAN) and more. 

Online and Offline Investing

Navigating through how to invest in IPO encompasses understanding both online and offline investment pathways:

Online Investment through Brokers:

Account Login:

Begin by logging into your brokerage account or establishing one if you don’t have one.

IPO Selection:

Navigate to the IPO section, selecting the desired IPO from the list.

Bid Placement:

Input your bid quantity and price, preferably opting for the cut-off price to enhance allotment chances.

UPI Transaction:

Submit the UPI ID, approve the transaction on your UPI app, and await mandate notification. The bid amount remains blocked until allotment.

Online Investment through Internet Banking:

Banking Portal Access:

Log into your Internet banking account.

ASBA Navigation:

Locate and click on the ASBA tab, followed by ‘Apply IPO’.

Application Details:

Input applicant name, PAN, bid quantity, and price, submitting the bid for processing.

Offline Investment:

Investors who are not comfortable with online applications can opt for offline applications through brokers or bank branches, involving filling out the ASBA application, providing necessary KYC details, and blocking funds until allotment.

Advantages of Online IPO Applications

Online IPO applications offer convenience, speed, and accessibility. Investors can apply for Initial Public Offerings seamlessly, track applications in real-time, and benefit from demat accounts for efficient electronic securities storage and trading.

Efficiency and Time Conservation

Online IPO applications have significantly condensed the temporal aspects of investment, ensuring that investors can partake in IPOs without being burdened by time-intensive processes. The digital platforms allow investors to apply for an IPO from the comfort of their homes or offices, eliminating the need for physical submissions of applications and thereby saving precious time.

Seamless and User-friendly Interface

Investors are greeted with intuitive, user-friendly interfaces when applying for IPOs online. The platform guides them through each application process step, ensuring they can complete their applications accurately and efficiently, even if they are relatively novices in IPO investments.

Interest Accrual on Blocked Funds

A distinctive feature of online IPO applications is utilising the ASBA (Application Supported by Blocked Amount) facility. The application amount remains blocked in the investor’s bank account until the allotment process concludes. Notably, if the blocked funds are in a savings account, they continue to accrue interest during this period, ensuring that the investor does not lose out on potential earnings.


With their allure, IPO investments offer investors a pathway to earn lucrative returns. Whether opting for the contemporary ease of online applications or adhering to the traditional offline methods, the essence lies in prudently choosing a SEBI-authorised broker and conducting thorough research to optimise the investment journey.

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