How to apply for an IPO Zerodha Broker and essential things to know IPO

When flipping through the pages of a newspaper you will see a company's IPO ads for something. Are you one of those people who questions what this IPO is? Let’s look at the basics about IPO - Initial Public Offering.

What is an IPO?

  • An IPO is an acronym for Initial Public Offering. This is the first time that a privately owned, privately owned company has sold its shares to the public on the stock exchange.
  • The name of the company will also be listed on the stock exchange through the IPO issue.


DISCLAIMER, All contents provided by meant for EDUCATIONAL PURPOSE Only. Understand the Market Risk and Consult your Financial advisor before investing.

How does a company issue a type IPO?

  • Before a company issues shares publicly, it seeks the services of an investment bank to handle them. The investment bank and the company jointly generate the financial details for the IPO as specified in the Underwriting Agreement.
  • They then submit a report to the SEBI for registration with this Underwriting Agreement.  SEBI will allow you to research these details and, if they are correct, record them and announce the IPO release date.

Why does a company issue an IPO?

  • IPO issuance is the process of receiving money.  Any company will need money to grow, improve, expand or build better businesses or to repay debts or for other reasons.
  • If a company makes an IPO, listing its name on the stock exchanges will indicate that it has been successful enough.  This is something that can give pride and credibility to any company.

What to know before investing?

  • If you buy an IPO of a company, that company has growth, fall, and your investment. 
  • This investment, which is part of your investment plan, can give you huge returns or reduce the value of your investment without any symptoms. Remember that stocks are all subject to market risks.

Can I invest in an IPO?

  • Deciding whether or not to invest in a new company’s IPO is really challenging. Because it is honest to approach the stock market with suspicion.
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How to apply for an IPO and how to stay informed of new ones?

Open a  Demat Account Zerodha Broker Click Here. You can apply for an IPO through Zerodha using any supported UPI app. Once you install the BHIM UPI app (latest version) and register your UPI IDfollow the below steps to apply for IPOs:

1. Login to Console and select ‘IPO’ in the ‘Portfolio’ menu.

2. Select the IPO you want to apply for from the list of open issues.

3. Enter your UPI ID. The UPI ID is checked to confirm it's validity. However, we will not be able to check details of the bank account mapped to the UPI ID. You should make sure this UPI ID is mapped to your personal bank account. The IPO application is liable to get rejected if the person who is applying is different from the one whose bank account is used to apply.

4. Place your bid(s). Select the investor type for your application. While placing the bids, only quantity that is a multiple of the lot size is allowed. If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cutoff-price’. If you want to place a bid at a different price, you can do so by entering a price in the ‘Price’ field:

5. Once you’ve completed all these steps, click on the checkbox to confirm that you have read the RHP and other documents and click on submit:

6. Accept mandate request on your BHIM UPI App: 

At the end of the day after submitting the IPO bid, you will receive an SMS from the exchange confirming your application. Meanwhile, to check the status of your order you can select the IPO you have applied for and you’ll be able to see the last updated bids in your application.


1. You can check the list of banks and BHIM UPI apps supporting UPI ASBA here under the “UPI Apps and Banks live on IPO” section. 

2. You can check NPCI's explanation of the UPI ASBA process in the following languages:
a. Sindhi
c. Tamil
d. Hindi

3. You will receive an SMS from NPCI confirming your bid and requesting you to accept the mandate on the BHIM UPI app.

4. You should ensure that the application number on Console (or sent by the exchange EoD on the day of your bid) matches with the application number on the BHIM UPI app mandate.

5. Applications can be made/modified/deleted through Console during the IPO window (10 AM to 5 PM). 

6. Mandates cannot be canceled on the BHIM App. Once an application is deleted the mandate is revoked by your bank. 

7. If you have modified your bid, you will have to accept a new mandate on your BHIM App.

8. You can verify the bid details on the exchange's website one day after the placement of your application bid.

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