Initial Public Offering abbreviated as IPO is the first sale of a company’s share available to the public. There is IPO bidding on offered stocks and the stocks are allocated to successful bidders. The revenue generated is used by the company for its growth and expansion. Investors can bid for the upcoming IPO as it is a lucrative investment asset for wealth creation over a long period of time. The IPO is open for a period of 3-21 days to the public. This article will take you through the complete process of IPO bidding.
The first-time IPO investors are often clueless about the process of IPO bidding. It is recommended to do thorough research before bidding on a particular IPO. Just like a stock market investment, IPO bid timing is crucial when investing in IPO. You can bid for IPO through both online and offline methods. However, it is mandatory to have a Demat account to conduct both transactions. Here is a comprehensive process of IPO bidding:
1. Online IPO BIdding
2. Offline IPO Bidding
For an IPO of a prominent company, the demand for the stocks often exceeds the quantity available to the public. In such a case, you might get a lesser number of shares than what you initially bid for. There might also be a possibility that you might not get any share. Hence, the bank refunds your blocked amount.
In IPO bidding, if you have received full allotment, all the shares are credited to your Demat account. Moreover, you will also receive a Confirmatory Allotment Note (CAN) from a particular company after the IPO is closed.
No, you cannot make multiple applications for a particular IPO. You can apply it on behalf of your family member through different credentials.
Yes, according to SEBI, filing an Application Supported by Blocked Amount (ASBA) form is mandatory.
To check the IPO bidding status, you can visit the BSE website and fill in relevant details such as issue type, issue name, application no, PAN card no, and click on the search button.
Yes, an investor can revise the application details such as the number of shares and bidding price during the process of IPO bidding. However, this can only be done if the IPO is open for subscription.