The initial public offering is sharing of stock in a company that is sold to the general public on a security exchange for the first time. Because of this process, a private company transforms into a public company. A trading and stockbroker firm like Angel One provides a simple and hassle-free way to apply for an IPO.
An IPO is also called a Stock Market Exchange. Initially, offerings made by the public are used by companies themselves to raise money for expansion. For applying for an IPO, there are lots of sites and apps on the internet. Customers of Angel One can apply for an IPO in two ways which are:
Steps For Applying IPO Through Angel One App
- Log into the Angel Broking app on mobile or the website.
- Here you will see the ‘Menu’ button at the top left corner; click on the button.
- Click on ‘Investment Opportunities.’
- Select IPOs and FPOs.
- Choose an IPO to which you want to apply by selecting the ‘Apply‘ button.
- Enter your unique personal interface ID, the investor, the quantity of the order, and the price, and tap Invest.
- Confirm your details to proceed ahead and with your order.
- Choose your payment option and make the payment.
- And you are all done.
- You can track your order on the APP itself (Visit IPO order book page and track).
Steps For Applying IPO Through Angel One Web
- Log in on the website and click, ‘More.’
- Select an, ‘IPO.’
- Before you choose any IPO to apply, you may look at the ARQ IPO predictor to see the minimum and maximum price and lot.
- Click, ‘Apply’ and choose an IPO you want to apply for.
- Here, please enter your Demat account number in which you want your IPO stocks credited in the future, and other asked details.
- Tap, ‘Invest’ to proceed.
- Congratulations! Your order is placed.
- Now, there is one step which is pending, i.e. payment. You may proceed with the payment using UPI, Netbanking, or any other option.
- Authorize your payment in order to block your funds for IPO.
- It’s done.
Note: In case, the stocks are not allotted then the amount will be sent back to your bank account.
IPOs come in two varieties which are Fixed Price IPOs and Built IPOs. In Fixed Price IPOs, the company fixed the IPO price advanced as the sum of the par value. Whereas in Built IPOs, the company will only provide the indicative price range. The IPOs have the potential to offer very high returns to investors.
Always remember to read the terms and conditions thoroughly before placing the bid. ASBA is mandatory for IPO bidding, according to the Securities and Exchange Board of India.
The basis of the allotment is finalized within 10-12 days. And after that Demat account also activates within a couple of days. Once the stocks or shares are listed in the exchange, you can sell them.