Do you want to know about IPO? If yes then you are on the right website. in this article I am going to give complete information about the IPO that happens in the share market. So do read this article till the end. Today in this article we are going to share What is IPO? What are the benefits of buying an IPO? How to check IPO allotment status? How to apply for IPO? Should you invest in IPO or not, and if you should invest then how to buy IPO from the share market. And also in this article, we are going to tell you about the upcoming IPO, which new IPO is going to be launched. So without wasting any time let’s start.
How to Apply for IPO?
First let’s understand the basics of IPO, The full form of IPO is Initial Public Offering. IPO means when a private company is listed in the share market for the first time and that share goes to sell for the first time. Apply for the IPO process is given below.
After releasing the IPO, the private company does not remain private, That company becomes public because it also involves public money.
Why does any private company come out with an IPO (Initial Public Offering) and sell its shares? To understand this, let me understand you with an example. Suppose I have a company of 100 crores, Which means its valuation is Rs. 100 crores. now I want to internationalize this company, for which I will need 25 crores. Where should I get it now for Rs 25 crore? If I take a loan of 25 crores from the bank, then it will suffer a lot.
If I take a loan from the bank, then interest will also have to be paid instead of 25 crores, due to which I will also suffer financial loss. So better get my company listed in the share market. After this, I will release the IPO (Initial Public Offering) of my company, after which people will buy the shares of my company and that money will come directly to me so that I can take my company further.
What are The Benefits of Buying an IPO?
Here are the Benefits of Buying Initial Public Offering
- Buy Cheap & Earn More
- Price Transparency
- More Groth Chances
Buy Cheap & Earn More – Whenever a company enters the share market, releases IPO (Initial Public Offering) , then the shares of that company are available at the lowest price in general and after some time the price of those shares increases by 2 to 3 times.
Price Transparency – Another advantage is that there is price transparency. That is, the price of that shares will be written in the auto document. So those who are small level investors and those who are Big investors will have the same information related to that shares.
More Groth Chances – The third advantage is that whenever the company releases the IPO (Initial Public Offering), then either the company is thinking of expanding itself or is thinking of getting a loan, then in a way the company is going to move forward. So there are a lot of chances for that shares to increase in price and that company to grow. So in short, there is a risk of sinking your invested money and there is a lot of chance that your money will be 2/3/4 times more.
Things to know before Apply for IPO
So if you yourself have taken the decision that you have to invest in IPO, then you have to keep all these things in mind before investing in IPO.
- So first you have to apply for and if you apply there is no guarantee that you will get allotment.
- In IPO, you cannot buy as many shares as you want, in IPO shares are bought according to the lot size , Like 25, 27, etc.
- There is also a limit to the maximum number of shares you can buy. Even if you want, you cannot buy more than a limit.
- It is not necessary that you will get the same number of shares you applied to buy, it depends on the availability and how many applications there are for that share.
If you want to invest in IPO then first you understand what is IPO and how is it work, If you want to invest to do proper research then invest. This article is just for information purposes only, Do your own research then invest.
Should we Invest in IPO?
To apply for IPO (Initial Public Offering), first, you need to have a Demat account. You can choose any Demat accounts, Such as Zerodha, Upstox, 5paisa, Angel Broking, Grow, etc.
The process of applying for IPO is slightly different for every Demat account. Let’s talk about Zerodha. How can you apply for IPO in Zerodha?
To Apply for IPO in Zerodha, you have to open the kite application of Zerodha. First of all, you have to open your kite application. After that, you have to click on your profile. then you will see the console, it is written IPO, click on IPO. after that IPO console page will open on your screen.
Now select any Initial Public Offering and click on Bid, Then enter your UPI id, Then select investment type – Individual, Then select quantity, how many quantities you want to buy. Like I told you earlier that you cannot buy shares according to quantity in I O. You have to buy according to lot size. Then you have to choose the price, With what price do you want to buy Initial Public Offering shares? Generally, people select the cutoff price, which means they buy the shares at the same price at which they are available.
After that you have to click on Undertaking, then you will see the payable amount, then submit. After submitting, you will get the notification of Payment in UPI id. Your orders are placed as soon as you make the payment.
If you have to apply for IPO shares you will get them, if you do not get those shares, then the money will be returned to your account.
How to Check IPO Allotment Status?
How to check IPO allotment status? That is, how will you find out that when you have to Apply for IPO in a company, then you have got shares allotted in it or not.
The 2 IPO register is quite popular in India, which handles the entire management of the I PO. One is linkintime and the other is kfintech. So how you can check your IPO allotment status from both these websites, explained in the details below. check it out
check IPO allotment Status
- Visit LinkinTime or KfinTech website.
- After visiting the website, you can check IPO allotment status in 3 ways
- By using PAN, Application No, DP Client ID
- Then select IPO , Which IPO allotment do you want to check.
- Now enter application number / PAN/ DP Clind id
- Then click on search button.
- That’s it, Your result will appear on your screen.
If your I.P.O allotment is not done then your money will be refunded to your bank account.
So, friends, that’s all in today’s article. I hope you have got the information related to IPO (Initial Public Offering). If you have any other queries related to I.P.O then you can tell us in the comment section below. Stay Tuned with us, Bye.
Note – I have shown a lot of hope that you can make 2/3 times your money from an IPO, Initial Public Offering, but you do not buy the IPO of any company blindly, it is very important to do your own research. Because many times the price drops shortly after the release of the IPO. In such a situation, there is also a chance of your loss. If you are going to invest in any company, then do good research about that company, lest you have to lose money instead of earning money.
This article is only for education porpoise, if you are thinking of investing in IPO Initial Public Offering then you have to make the decision yourself.