How to apply for an IPO with Angel one Demat Account?

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Company profile-
AngelOne or Angel broking ( former name) is one of the leading stock trading platforms in India, with its quality service and great management it has come up. Established in 1996, it is among the top 10 stock trading firms. Currently, Narayan Gangadhar serves as the CEO of the company. The company has over $1.6 billion under its asset management. The company provides a wide variety of services which includes broking services, investment advisory, margin trading facility, loan against shares, distribution of third party financial products and investor education. The company serves more than 3657550 active clients with a market share of 10.15%. Sustaining a long time in this field AngelOne has always adapted the latest technology and provided the best quality services to its clients.

What is an IPO?
IPO or initial public offering is a process in which a company raises funds by selling shares of the company. When a company is listing its shares for the first time in the market it is referred to as an IPO. There are a variety of reasons for an IPO, a company may need funds to fuel its expansion, repay loans, or diversify its business lines. Once an IPO is launched the company’s shares go public and then they are traded on the secondary market.

From an investor’s point of view, an IPO is a great chance to invest in a company and become a shareholder. You can’t directly invest in a company through an IPO, you first need to apply and then wait for allotment. Many investors want to invest but earlier this process was lengthy due to paperwork. But now with modern technology, it is easy to apply and see the status of your allotment. As an investor one needs to understand how to apply for an IPO online. And today’s article is for the same.

Eligibility for applying to an IPO:
According to law any person above legal age (18), who is permitted by law to enter into a contract can apply for the IPO of a company. But you surely need some other things to apply for an IPO which includes a Pan card and a Demat account to receive shares. If a person doesn’t have a trading account then also they can apply for an IPO as only a Demat account is necessary. But if you want to sell shares after their listing you would need a trading account. So it is advised to open a trading account with a Demat account when applying for an IPO. You can also, Click here to open a Demat account.

Things to know before applying for an IPO:
1] IPO is an invitation to offer and not offer. You only receive shares once your application is approved.

2] There are two varieties of IPO- Fixed price and Book Built IPOS. Under a fixed price, you can only apply for an IPO at that price. In book-built issues the company provides a price range and the final price is declared later through the book-building process. Nowadays most IPOs are through the book building method only.

3] Under IPO you can’t buy one or two shares. There is a fixed number of shares in the form of lots and you have to buy lots.

4] There are 3 different classes of IPOs- High net-worth individuals (HNI), Institutional investors and retail investors. Investment up to the amount of ₹2 lakhs falls under the category of retail investors.

5] There are two ways to bid for an IPO, one is through the offline method and the other one is through the online method. Under the offline method for applying to an IPO, one needs to fill out a physical form and submit it to their respective broker. In online mode, you go to your respective broker’s website and submit an online application. The advantage here is reduced effort as the broker already has your details, thus simplifying the process for you. The online method is preferred by most of the investors out there.

6] Under book- the building method the process goes on for about 10-12 days and you can sell the shares once they are credited to your account and the company gets listed.

7] One of the most important things to understand while applying for an IPO online is Applications supported by blocked amounts (ASBA). Under this system, you don’t have to pay any money before the allotment of shares. The amount to the extent of your application of shares gets blocked from your bank account and on the allotment day, your account is debited to the extent of the allotment you receive. For example, you apply for shares worth ₹10,000. Then your bank account would be blocked for ₹10,000 and on the day of allotment if you receive shares worth ₹5000, then only ₹5000 will be debited and the rest will be unblocked again.

Coming to the process of applying for an IPO through AngelOne:

If you have your Demat account with AngelOne and want to apply for an IPO then there are two ways- The online and offline methods.

The online method is very simple and feasible for anyone but if you want to apply for an IPO offline through your AngelOne Demat account you can. And here is the process below:

1] Go to your nearest AngelOne office or Nse/Bse website and download the IPO application form.

2] Fill in the form with required details such as your bank account details, Pan card number, cut-off price and Demat account details.

3] apply to the AngelOne office or a bank with ASBA.

Now coming to the online process for applying for an IPO:
This method uses UPI based payment method
1] You first need to login into your AngelOne app (mobile, web, or desktop) 2] Click on the Hamburger menu button:

3] Click on more, and you will find the IPO option:

4] Select the IPO you would like to invest and then you may click on the apply button:

5] After clicking on the apply button you would be asked to enter your UPI id.

6] Then select your investor type, order quantity and price.

7] If you apply under the retail category you would need to choose the Cut-off price.

8] Click ‘Apply’ to place your application for IPO.

9] The process doesn’t end here, A UPI mandate is sent to your UPI app which you need to approve for payment. This usually takes anywhere between 2 hours.

10] And now your application has been successfully submitted, you can check your IPO application status in the AngelOne app whenever you wish.

Steps to apply for an IPO through Applications supported by blocked amounts (ASBA)
1] Login into your respective bank app or bank website.

2] Go to the IPO section.

3] You would get a list of IPO of upcoming IPOs there. Choose the IPO you would like to apply for.

4] Now enter your AngelOne Demat account number.

5] Choose the investor type, then enter your order quantity and price.

6] If you apply under the retail category you would need to choose the Cut-off price.

7] Confirm your order and it has been successfully placed and the amount of your application would get blocked in your account.

Frequently asked questions:
1] How to check IPO application status?
Ans- You can check your application status in your app. Click on Menu> Trade> IPO section> Order status page.

2] Where can I see if I have been allotted shares?
Ans- The IPO’s allotment is published online by the registrar of the IPO on its website. It is not available within the Angel broking app. But you would receive a message when shares are allotted to you and deposited in your Demat account.

3] Where can I find upcoming IPOs?
Ans- You can find all the upcoming IPO and their company details in the AngelOne app.
1] Login into the app 2] Click on the menu.
3] Under investment opportunities select IPOs.

4] Can I apply for an IPO offline through AngelOne?
Ans- Yes you can also apply for an IPO offline. For the same, the process has been stated above.

5] Do I need to pay any extra fees if I apply for an IPO?
Ans- No you are not required to pay any extra fees for your application.

6] What are the eligibility criteria for an IPO?
Ans- Everyone is eligible. You just require a Demat account and pan card.

In conclusion – applying for an IPO with an Angel One Demat account is a straightforward process. As an existing customer, you can apply for an IPO through the Angel One trading platform. To apply for an IPO, you need to have sufficient balance in your trading account and ensure that the account is active and KYC compliant. It’s important to check the IPO details and the allotment status before applying for the IPO. The process for IPO application can vary depending on the issuer and the stock exchange, so it’s always a good idea to check the details on the issuer’s website or consult with a financial advisor. Overall, applying for an IPO with an Angel One Demat account is a convenient and efficient way to participate in the primary market.

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