In this session, we will learn step by step how to apply for IPOs through HDFC Bank net banking -all by using live examples.
Filling the application incorrectly is the number #1 reason for rejection of IPO application so make sure you watch this video completely and follow the instructions carefully.
As you know, there are two types of IPOs – Book Building and Fixed price.
Book building IPOs are the ones where there is a price range and investors are asked to place their bids at their best price
Fixed ones have just one price point.
Let’s start with the most common one:
Book building IPO
I will be applying for the IPO of HDFC Asset Management Company, who manages HDFC Mutual Funds. I am sure you would have heard about them.
Ok, lets get going…
First, let me login to my HDFC Bank net banking.Then on the left, hit the ‘Request’ tab.Scroll down a little and here is the “IPO Application” option.
Click on it and continue to the IPO system.
I am redirected to the HDFC Securities page.What you will find in this page is the list of all the open IPOs at the time. So if there are 5 IPOs open at the same time, you see them all listed here.
As of now there is just one IPO but different 3 separate applications – one for general public like you and me, other for their employees and third for HDFC’s shareholders.
I will select General.
Now we are at the order placement page.
Alright, start paying attention because you should know exactly what to fill in every field:
SelectInvestor Statusas IND RETAIL, unless of course you are an HNI. HNI is “High Networth Individual, means someone with a lot of money.
As soon as I do that, I get a little pop-up.
This is basically a message saying that the amount equal to the IPO bid amount will be blocked in my bank account and will be debited from the bank account only if I receive an allocation.So if I do not get any allocation of share, the block is removed. If I do get the allocation, money will be debited from my account.
Bottom line is that the money stays in the account and there is not hassle of refund. It was a big problem until SEBI came up with this new process of applying for IPOs.
Before filling this form out, you need to check the lot size. The lot size of this IPO is 13 shares so that means I can only apply in the multiples of 13.13, 26, 39, 52 ….all the way to 169- which is the upper cutoff. (because max amount can not be more than 2 lakh)
Now, let’s see the price band. It is between 1095 to 1100. It means my bid has to stay in this range.
Bid Details –
I can enter up to 3 bids.
Notice when I give 13 that is 1 lot and price as 1095, system automatically calculates the total amount as 14,235 rupees- that’s the price of 1 lot.
Let’s say I want to enter two more bids. Second bid of 2 lots, meaning 26 shares, and the price for this bid is , let’s say, 1096. Notice how the application amount just went up?
Let’s see what happens when I place the third bid at the cut off price. It automatically picks up the highest price that is 1100.
Notice that the application amount will always be the highest of the 3 bids. It will not be the total of all three bids because at the end of the day, only 1 bid will be accepted. It’ a very common misconception.
Alright, I hope you’re clear how the bids work. If you have any confusion about how bids are placed or strategies for getting IPO allocations, do checkout the video linked in the description below. We have covered a lot of commonly asked questions about IPOs.
OK, since I want to give my application the best chance of getting allocated, I will just place the bid for 1 lot at the cut off price.
This is the applicant details section. The first applicant’s name and PAN# are already filled out. If you want, you can add second or third applicant as well but that is completely optional.
Next is the Date of Birth. Fill it out real quick.
Father’s/Husband’s name is optional so I will just skip it.
OK, this is the most important section of the application because here’s where most people make mistakes. So, pay close attention.
You need a DEMAT account in order to apply for an IPO. Why? Because it would be like asking someone electronically transfer money to you when you don’t have a bank account. Where will they send the money?
DEMAT account is like a bank account for your shares. That is where your shares are stored. If you get the IPO allocation, this is the account where your shares will be sent.
Now, some of you ask “ sir, I have an account with Zerodha or Sharekhan or Kotak secuities…is that my demat account?” If you’re asking this question, it means you don’t understand the difference between DEMAT and Trading account. Do checkout the video in the description below that explains with a live example.
Anyway, you will need your Demat account number.
If you are a Zerodha customer, it’s easy.
Just go to Kite-> Backoffice-> Profile -> and there on the right hand side check out the “DP ID FOR IPO APPLICATION”. That’s your DEMAT account. OK, got it?
For others, just call your broker, tell them that you’re applying for an IPO and that you need to know 2 things:
A-> Who is the provider of DEMAT account – NSDL or CDSL? These are the only two providers of demat accounts in India.
And B-> What’s your DEMAT a/c number
Your DEMAT account will be a 16 digit number which is formed by putting together two IDs:Depository ID (8 digits) and Beneficiary ID (8 digits).
Depository ID is the ID of your broker. Sharekhan, etc,,.
Client ID is your ID with that broker.
If your broker has DEMAT account with CDSL, it would look something like this. All 16 digits will be numbers.
If account with NSDL, first two would be letters “IN” and remaining 14 will be numbers.
Ok, now that you have your demat account number and you know who provides it, you have to enter the information out very very carefully.
Depository is the provider of your DEMAT account.
For my Zerodha account it is CDSL. So, I pick it from the drop down.Next field is the DP name, DP means Depository Participant, which is just a fancy term for broker. My broker is Zerodha.
You will notice that when you pick CDSL, the DP ID field gets grayed out. It is because for CDSL, the whole DEMAT account number – the 16 digits- has to be filled out in the “Beneficiary Account number” field. Let me do that.
If your DEMAT is with NSDL, the 8 digit Depository ID will go here and the 8 digit Client ID will go here- got it?
From here onwards, it will be a very easy.The Bank details will be automatically populated, as you can see.Just hit “proceed”
You will get this little confirmation message,…let me click “confirm”
Nothing is happening? Why?
Here is where sometimes people get stuck.
If you are having the same problem, don’t worry; your popup blocker is preventing the next screen to show up.All you have to do it is turn OFF your Pop up blocker and retry. This is a very common mistake guys, so make sure your pop up bloker is turned off even before you start the application.
After that, you will get this long disclaimer. Just scroll down and accept.
Ok ..now…it says “There is a cash short fall of Rs 14300 for this order”. Don’t worry …all this message is asking for permission to block funds for the IPO.
No problem, I will hit submit.
Your bid has been successfully placed.
It means your IPO application has been submitted. Awesome.
Follow the steps mentioned in this video and if you have any question, feel free to ask in the comments section. Alright guys take care.
Here's how the process looks like:
Register for UPI on Google Pay app & link your HDFC Bank Account with “okhdfcbank” handle. Enter your UPI ID on the IPO application form and submit it. You will get a fund block request on Google Pay app. Approve the request in the Google Pay App to block the amount for the IPO.
- Login to your online account with the broker. ...
- Locate the IPO tab and go to the current IPO section. ...
- Enter the lot size or the number of stocks you want to bid for. ...
- Type your UPI ID in the next step and hit the submit button. ...
- Wait for the mandate notification in the UPI app.
Nowadays, Banks also give options to their customers for purchasing IPOs through net banking. However, investors need to remember that the acquired securities will be credited in the dematerialised form; and therefore, a Demat Account is necessary to buy IPOs.Which UPI is best for IPO? ›
|Sr. No.||UPI Apps live on IPO||Handle|
|26||Nxt - Union Bank of India ( iOS and Android )||@unionbankofindia, @uboi and @unionbank|
|27||Paytm (Android & IOS)||@paytm|
|28||Phone-Pe (Android & iOS)||@ybl, @axl, @ibl|
|29||SIB Mirror+ (only Android)||@sib|
Now you can use your UPI ID as a payment option while subscribing for IPO on National Stock Exchange(NSE) & Bombay Stock Exchange(BSE). Simply tell your broker to use UPI ID as the payment option while filling the IPO application.What are the 7 steps to getting an IPO? ›
- Choosing an Underwriter. Before starting any of the other IPO process steps, a company first has to connect with a reputable underwriter or group of underwriters. ...
- Due Diligence. ...
- SEC Review and Road Show. ...
- IPO Pricing. ...
- Launch. ...
- Stabilization. ...
- Transition to Market Competition.
Never Bid at a Lower Price Than The Cut-Off Price
So, if the price band of an IPO is 100 to 120, the cut-off price is 120. To increase the chances of IPO allotment, you must bid at the cut-off price. If you see the IPO is oversubscribed, it means everybody has bid at the cut-off price.
To invest in IPO shares, you must first open a Demat account as well as a trading account. Only Demat accounts are typically required to purchase shares in an IPO. However, if you wish to sell those IPO shares to a secondary market in the future, you will need to both open a Demat account and a trading account.Can I apply for IPO after 5 pm? ›
IPO orders can be placed anytime between 10:00 AM on the issue opening day and 4:30 PM on the issue closing day.How do I know if IPO is allotted in HDFC? ›
Steps to check IPO Application Status in HDFC Securities:
Log in to HDFC Securities account through web or mobile app. Go to IPO/OFS. Click on Order Book. Check the status of your IPO application.
IPO orders can be placed anytime between 10 AM on the issue opening day and 4:30 PM on the issue closing day.What is DP name in HDFC IPO application? ›
Simply put, a DP name is the name of the depository participant. It is the stockbroker with which you have a Demat account. Depository, DP ID, and DP account precede the DP name.Can I use third party UPI for IPO? ›
No, the 3rd Party UPI IPO Application is not valid. When applying in an IPO using UPI as a payment option, both the demat account and bank account should belong to the same person as the primary account holder.Can we buy IPO without demat? ›
Although investors can apply for IPO without a Demat account, they need a Demat account and trading account to place trades.How can I know my HDFC UPI ID? ›
For HDFC Bank Customers
E.g. your Mobile no as your UPI ID like 98XXXXXX21@hdfcbank. Select HDFC Bank account number to be linked to UPI ID. Generate 4 digit UPI PIN using debit card details & UPI registration is done.
For that, today, NIC ASIA Bank has become the public's first choice and has been given the tag as the no. 1 bank in Nepal. Also, NIC ASIA Bank provides the easiest way to clients when it comes to applying for IPO through its MoBank App. Customers now can directly apply IPOs without remembering the CRN no.Can I use GPAY for IPO? ›
IPO Mandates let you use Google Pay as a form of payment in buying IPOs. You can apply for IPOs in advance, which places a hold on the money in your bank account.What is UPI ID in HDFC Securities? ›
A UPI ID is a unique identification for a bank account that can be used to send and receive funds. UPI PIN is a 4-digit personal identification number that must be entered to authorise the transfer of money via UPI. The PIN can be chosen by the account holder.How can I activate UPI ID in HDFC Bank? ›
- Download HDFC Mobile Banking App. To Download click here.
- Login using your Customer ID and Password.
- Click on Menu/Pay/UPI Payment from your registered mobile number.
- Enter the UPI ID you desire.
- Add your Bank Account to start your UPI Payments.
In the case of individual accounts, any UPI ID in the applicant's name can be used to apply for IPOs. In the case of joint accounts, the applicant should be one of the bank account holders. UPI IDs of bank accounts where the applicant is not an account holder cannot be used to apply for an IPO.
If you are looking to buy a stock on the day of its IPO, do so because you expect to invest for a long term because, in the short term, it might not turn as much profit as you hope it would. If it's a good company, in the long term, you can be certain of a decent profit.How long IPO process takes? ›
The IPO process is complex and the amount of time it takes depends on many factors. If the team managing the IPO is well organized, then it will typically take six to nine months for the company to complete its public debut.What makes a good IPO candidate? ›
Strong revenue growth that is sustainable and visible. Strong margins, cash flow generation and a path to profitability. An experienced, “public company ready” management team. Robust financial, operational and compliance controls supporting KPI reporting.What is the trick to get IPO allotment? ›
- Avoid big applications. ...
- Apply via more than one account or multiple accounts for the same ipo. ...
- Bid at cut off price / higher price band. ...
- Avoid last moment subscription: ...
- Fill the details properly. ...
- Buy parent or holding company shares.
Bid price is lower than the issue price
During oversubscription, the company decides the final issue price based on the bids investors offer. You will not receive an allotment if your bid price is lower than the issue price.
If the company declares a higher issue price than the amount an investor bids on the application, the investor will not receive an allotment.How much money do I need to buy an IPO? ›
What do I need to know? First, you'll need to meet at least one of the following eligibility requirements for participating in an IPO: Either $100,000 or $500,000 in household assets (depending on the IPO; this amount excludes institutional or annuity assets, such as 401(k), 403(b), and annuity contracts), or.What is the minimum amount to invest in IPO? ›
2 lakh. A minimum of 35% of the IPO is reserved for the RII category. Investors from this category can bid at the cut-off price.Can I sell IPO immediately? ›
Can you sell an IPO immediately? IPO trading starts when the market opens on the listing day. You cannot sell the share prior to it. They can only be sold at or after the market hours begin.Can I bid IPO on Sunday? ›
Yes, you can apply for an IPO application on Sunday as well but through an online application.
Open Instant Account and start trading today. The bidding for IPO shares at the stock exchange is open from 10 AM to 5 PM when the IPO is open for the public. But most banks do not accept IPO bids on the last day till 5 PM.What if IPO is not fully subscribed? ›
It is an initial public offering in which the demand from investors is less than the number of shares offered by the company. If an IPO is undersubscribed, it may be cancelled or postponed.Is IPO allotted to everyone? ›
No, the IPO allotment doesn't happen on the basis first come first serve. The allotment process totally depends on how the IPO got responses from the investors. If the IPO is undersubscribed, then the investor may get allotted all the lots for which they have applied.What if I have less than 25 shares of HDFC? ›
Shareholders having lesser HDFC Ltd shares, the amount will be credited back to them. For example, if you hold 30 HDFC Ltd shares, you will receive 42 HDFC Bank shares against 25 HDFC Ltd shares.Who checks IPO allotment status? ›
As mentioned above, bidders can check their application status online by logging in at the BSE website — bseindia.com or at the registrar's website. The official registrar of the IPO is Link Intime Private Limited and its official website is https://linkintime.co.in.Can I apply for IPO 2 times? ›
No, one person cannot apply multiple times through multiple applications for an IPO. It's a rule and if you apply in an IPO though multiple applications with same name or same demat account or same PAN Number, all of your application will be rejected.Do I need to pay while applying IPO? ›
No, you don't require to pay any fee for investing in an IPO. You just need to provide your bank details while applying in an IPO. The investment amount is debited and shares are credited automatically when you get an IPO allotment.What is DP ID and Client ID? ›
Usually, the first 8-digits of your Demat account number is your DP ID where the last 8-digits of your Demat account number is the customer ID of the account holder.What is DP ID and Client ID in HDFC? ›
In either case, the first eight digits of your Demat Account number will represent the DP ID. The latter eight digits represent the client ID. The client ID or the customer ID is unique to every trader.How can I know my DP ID and Client ID in HDFC Securities? ›
The first 8 digits are the Depository Participant ID, and the last 8 digits are the client ID with the DP. You can find it on the eDIS authorization screen on the web portal as well as the mobile app.
You can apply in up to 5 IPO applications using one bank account. The 3rd Party IPO application is available only in a few banks like SBI, Bank of Baroda, RBL, Axis, and IndusInd Bank.How can I get LIC IPO from HDFC Securities? ›
Simply log into the HDFC Securities website, to the IPO and Order Book and you can check the status of your IPO application from here. Lastly, you can also visit any of our nearest branches and apply for the LIC IPO then and there itself. Click here to open an Account.What is UPI limit for IPO? ›
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If I Buy Shares of an IPO on the First Day of Trading, Can I Sell Them the Same Day? Generally, yes. If you are an investor who buys shares in the open market on the day of the IPO, then you can buy and sell at will.Is UPI mandatory for IPO? ›
The Securities & Exchange Board of India (SEBI) has made it mandatory for retail investors applying through registered brokers, DPs (depository participants) and RTAs (Registrar and transfer agents) to invest in IPOs through the UPI route. This makes the entire process secure and straightforward.How many IPO can I buy from Demat account? ›
You can make an application in both shareholder and retail categories for an IPO (unless specifically disallowed by the company in the Red Herring Prospectus) using the same demat account. However, you can make only one active IPO application by selecting the category you want to apply for through Kite.How do I find out my IPO UPI mandate? ›
If you have applied for an IPO on Console with your Google Pay UPI ID, you will receive a notification from Gpay. Alternatively, you can find the mandate in Google pay by navigating to your Profile>Autopay. Select the profile option on the top-right corner of the home screen; scroll below to find Mandates.How do I initiate a UPI mandate for an IPO? ›
In case of a technical decline, you need to reinitiate the payment process from the IPO Portal. The transaction can be re-initiated by approaching the the same intermediary to which you had submitted the application form.How can I know my HDFC Bank mandate? ›
You may view your transaction history by logging into your PayZapp for Business login account and looking at your Account History.Why have I not received a UPI mandate request for my IPO application? ›
Applied during market hours after bidding starts: UPI requests can take up to 24 hours. Please check your UPI app after some time. In case you do not receive a UPI request within 24 hours, you may opt to cancel and apply again.
The UPI mandate might fail after the IPO is alloted due to technical issues from the bank. The registrar sends the allotment file to the bank based on which the funds are debited. The shares credited to the demat can be sold even if the funds are not debited.Can I accept IPO mandate after 5 pm? ›
You could accept or revoke the UPI IPO mandate for blocking the funds till 5 PM of the issue closing date.What if IPO mandate failed? ›
Your UPI mandate may fail sometimes despite receiving the IPO allotment, due to technical issues from your bank's end. Your funds are debited from your account based on an allotment file which the registrar shares with the banks. In case of any technical issues, the bank will re-attempt to debit the funds.Can IPO be filled without UPI? ›
You can apply for an IPO through netbanking ASBA service provided by your bank if you don't use UPI. You will need to enter the following details for your application: Demat ID - This is a 16-digit number used to identify your demat account. It is unique for every client.Can I apply for IPO through GPAY? ›
IPO Mandates let you use Google Pay as a form of payment in buying IPOs. You can apply for IPOs in advance, which places a hold on the money in your bank account.Can we use third party UPI for IPO? ›
No, the 3rd Party UPI IPO Application is not valid. When applying in an IPO using UPI as a payment option, both the demat account and bank account should belong to the same person as the primary account holder.What is mandate limit amount? ›
₹1 lakh is the maximum limit per day for mandates through eNACH. To transfer more than ₹1 lakh in a single day, the transfer should be done manually.What is e-mandate maximum amount? ›
What is the minimum & maximum limit amount set for Mandate? Minimum amount for Mandate is Rs 5000 and Maximum is Rs 1cr. This amount can be edited and increased as well, however it cannot be reduced.How do you verify e-mandate? ›
- Authentication - Login with Mail ID. Once you click on Online E-Mandate Registration Authentication, a new screen will open. ...
- Enter Security Code. ...
- Create a Mandate. ...
- Authorise and Confirm. ...
- Log-In to Net Banking Account. ...
- Final Status.
An investor's application can be rejected and eliminated if the investor furnishes incorrect details regarding the Demat account number or PAN number. In case of a mismatch in names and numbers on PAN cards and bank accounts, an investor's application will be disregarded.
Some common reasons are:
- The company receiving multiple IPO applications using the same PAN number. ...
- Incorrect or invalid information filled on the IPO application form.
If the bid is uploaded on BSE iBBS platform then the investor will get the bid id against each bid. The Investors is required to put combination of his application no. and pan no. and to select Issue name to check the status of his application.