Best way to invest in IPO to get sure allotment

What is IPO?

IPO stands for Initial Public Offer. Investing in IPO can be a profitable opportunity for investors, but getting allotment is difficult. Due to increasing demand in IPO investment, especially those in which listing gain are expected very high, demand are higher then the supply. Here in this article, I will show you the best strategy for investing in IPO to increase your chances to get allotment.

Steps to invest in IPO

For investing in IPO you require Demat Account where you can store the shares and Trading Account for trading these shares. Demat is a decentralised account for hold shares and securities in digital way. In Demat account you can store Shares, Bonds, Government Securities, Mutual funds and other financial instruments. Damat account is very safe and secure for store financial instruments. For selling and purchasing shares or other financial instruments you require trading account.

Depositories for demat account in India

1. National Securities Depository Limited (NSDL)
2. Central Depository Services (India) Limited (CDSL)

Your demat account will be opened by 1 of these depositories.

Steps for opening demat and trading account for Free of Cost

1.  Click here and you will redirect to play store.
2. Download the Upstox app
3. After downloading the app, your have to enter your Mobile number and Email id.
4. Enter the other personal information like Aadhaar number and other details (you can also connect digilocker for documents)
5. Upload the required documents.
6. Take live selfie and do the digital signature.
7. Review and Confirm the application
8. Submit your application
9. You will receive your user ID and password within 24 hours after reviewed by Upstox team.

Application process for IPO in Upstox app

1. Open your Upstox app

     2. Click on the discover page

    3. Scroll down and click on IPO icon in quick access section.

    4. Now you will see the ongoing IPO list

    5. Choose your IPO and click on that

    6. After click on the IPO you will find the all required information about the IPO

    7. After reading the all details about the IPO you have to click on the “Apply”

    8. Now you will see the IPO application page where you have to submit the information about bidding Lot, Investor type, Price.

    9. After entering all the details you have to click on “apply at cutt of price and process”

    10. After this you have to enter your UPI id and accept the term and condition and submit.

IPO through ASBA (Application Supported by Blocked Amount):

ASBA is a investing method for IPO used by investors to apply for Initial Public Offerings (IPOs) in India. This is introduced by SEBI (Securities and Exchange Board of India), In ASBA money is not deducted from the account till the allotment received.

How ASBA works

1. Blocking of Funds: When you apply for an IPO by ASBA the amount is blocked as per the application or applied lots value for IPO.
2. Interest Earned: You will received the intrest on blocked amount from blocking of amount to allotment or refund (in case of non allotment) of IPO.
3. Allotment: If the shares are allotment then the exact amount will deduct from your bank account as per allotted shares, remaining funds will unblocked. In case of non allotment all blocked amount will be unblocked.

Steps to Apply for an IPO through ASBA:

Note : I'm using SBI to apply in below screenshots (Steps maybe different with other bank's process)

    1. Login to Your Bank Account: Login to your bank account by net banking. Ensure that you bank is ASBA enabled, most of the banks in India provide ASBA facility.

    2. Navigate to e-Services: Find out the option of e-Services in menu bar section and click on that.

    3. Find out the Demat and ASBA: In the selection list you have to find out the "Demat and ASBA service option as per shown in the below screenshot.

    4. Select the IPO (Equity / Rights) : In the ASBA service section you have to choose the IPO (Equity / Rights) option to get the list of the equity IPO's. Follow below screenshot.

    5. Select the IPO from the list: Now you will find the list of the current running IPO’s, You have to choose the best IPO for you and proceed. To choose IPO you have to do some research about the company before applying.

    6. Undertaking by ASBA investor: After the above process you will redirect to the Undertaking part. This under taking is all about the you have read all the details of share, Red Hiring Prospectus etc. You have to accept this for next process.

    7. Selection of Investor Category: Process after taking the Undertaking is to select the Investor catagory. Select your relevant catagory I'm choosing Individual here. For employees catagory only employees of the IPO offering company can apply.

    8. Select the Registered Applicant: After this you have to select the Registered Applicant. If you didn't create you as registered applicant you have to do this in below steps.

• Go to My Accounts and Profile section
• Then Click on the profile section
• Manage IPO Applicant
• Click on Add IPO Applicant details
• Now you have to provide some information

• Applicant Name
• PAN number
• CDSL or NSDL Demat Account number

    9. Submit Application: After filling all the required information, you have to submit your application by entering OTP. After submitting you will receive a acknowledgement receipt stated that your lien has successfully marked and after this your amount will be blocked till allotment.

    10. Confirmation: After some time you will receive confirmation message from the bank that amount is blocked.

Conclusion: The ASBA method for investing in IPO is more secure, easy and more convenient. By using ASBA you will receive the interest on the blocked amount till not debited. By using ASBA facility your chances to get the allotment is very high and there is no chance to get mandate failed, in UPI mandate fail is very common. Many investors first choice to invest in IPO is ASBA method. I personally recommend this because I have tested this, when I was using UPI mandate I have not received any allotment out of 7 application and after changing my method to ASBA I received 2 allotments out of 5 IPO application. To get 100% IPO allotment you can use your family members demat and trading account for sure allotment.