Personal Finance

How to Apply for an IPO?2 min read

February 2, 2021 2 min read
How to apply for IPOs through Paytm Money

How to Apply for an IPO?2 min read

Reading Time: 2 minutes

Indian companies reportedly raised over Rs. 30,000 crore in 2020 from 12 successful Initial public offerings (IPOs) including Mazagon Dock, Rossari Biotech, SBI Cards, Happiest Minds, Burger King, and Chemcon Specialty. According to NSE’s data, Happiest Minds was oversubscribed by 150.98 times and Rossari Biotech 79 times.

2021 is believed to be the year of hope and is expected to bring in bumper IPOs. Indian equity markets are likely to see some of their biggest IPOs ever in 2021 with big unicorns of India Inc coming to the stock markets.

An IPO allows companies to raise equity capital from public investors for capital expenditure, clearing debt, or giving primary investors the option to exit. Investors are drawn towards IPO for listing day gains and to become a long term investor and to grow with the company.

Earlier investors had to physically give cheques while applying for IPOs, which can be quite cumbersome at times. Paytm Money has launched an IPO feature on its high-tech app and website which enables investors to quickly apply for upcoming IPOs from UPI linked to their respective bank accounts to instantly complete the process.

How to apply for IPO on Paytm Money

1. Log in to the Paytm Money app and complete your KYC to open a Demat account.

2. Once given details are verified, your Demat account is opened, select the IPO section on the home screen.

3. Select the IPO you wish to apply for from the list of open issues.

4. Place the lot size and bid amount for IPO. (Maximum 3 bids are allowed)

5. After submitting the application request you have to enter UPI ID. You will receive a one-time mandate request on your UPI app.

6. Once you accept the mandate request, your IPO application will be submitted successfully.

Your money will be blocked until the allotment date and if IPO shares are allotted on the allotment date, then the amount will be debited from your bank account. In case shares are not allotted, the amount will be unblocked and can be withdrawn by you. Once IPO shares are allotted then it will get credited into your Paytm Money Demat Account.

Conclusion

The fully digital application process of investing in IPOs is now hassle-free for the investors with Paytm Money. It also provides an interface to help users change, cancel or resend the bidding application within the IPO window.

The platform has a wide range of features to help investors to track all the upcoming IPOs, check the historic IPOs performance, view the company’s brief history and details, and download the draft prospectus. To make a peaceful investing journey in IPOs, simply download the Paytm Money app on your phone.