StepbyStep Guide to Buying IPOs on Zerodha: Invest Smartly
Investing in an Initial Public Offering (IPO) can be an exciting opportunity to own shares in a company as it goes public. Zerodha, one of India’s leading discount brokerage firms, provides a seamless platform for retail investors to participate in IPOs. This detailed guide will walk you through the steps to learn how to buy IPO in Zerodha.
Prerequisites
Before knowing how to buy IPO in Zerodha, ensure you have the following:
1.Zerodha Account: An active Demat and trading account with Zerodha.
2.UPI ID: A valid Unified Payments Interface (UPI) ID linked to your bank account for seamless fund transfer.
3.Sufficient Funds: Ensure you have enough funds in your bank account to apply for the IPO.
Step-by-step Guide to Buying an IPO in Zerodha
1Log in to Zerodha Console
Visit the [Zerodha Console] (https://console.zerodha.com/) website.
Log in using your Zerodha ID and password.
2.Navigate to the IPO Section
After logging in, click on the ‘Portfolio’ tab in the top menu.
Select ‘IPO’ from the dropdown menu. This will take you to the IPO application page, where you can see the list of current and upcoming IPOs.
3.Select the IPO You Want to Apply For
On the Initial Public Offering page, you will see a list of ongoing IPOs. Click on the ‘Apply’ button next to the IPO you are interested in.
4.Enter UPI ID
A new window will pop up prompting you to enter your UPI ID. Make sure the UPI ID is active and linked to a bank account with sufficient funds.
5.Fill in Bid Details
Investor Type: Select the type of investor you are (Individual, HUF, etc.).
Quantity: Enter the number of shares you want to apply for.
Price: Enter the bid price per share. You can choose the ‘Cutoff Price’ option if you want to apply at the cutoff price decided by the company.
Amount: The total amount will be calculated based on the quantity and bid price.
6.Submit Your Application
Review all the details you have entered.
Click on the ‘Submit’ button to proceed. You will receive a mandate request on your UPI app.
7.Approve the Mandate on the UPI App
Open your UPI app (e.g., Google Pay, PhonePe, Paytm).
You will receive a mandate request to block the funds. Approve the mandate to block the required amount in your bank account. The funds will be debited only if you are allotted shares.
8.Confirmation of Application
Once you approve the mandate, you will receive a confirmation message on both the Zerodha Console and your UPI app.
You can check the status of your IPO application in the ‘IPO’ section of the Zerodha Console.
Important Tips and Information
Users need to know about important tips and information while learning how to buy IPO in Zerodha.
Check IPO Details: Before applying, thoroughly read the IPO prospectus and understand the company’s business model, financials, and risks.
Application Limit: Retail investors can apply for a maximum of ₹2,00,000 in an IPO. Ensure your application does not exceed this limit.
Allotment Status: The allotment process takes a few days after the IPO closes. You can check the allotment status on the IPO registrar’s website or through the Zerodha Console.
Refunds: If you do not receive an allotment, the blocked funds will be unblocked in your bank account.
Conclusion
The process of how to buy IPO in Zerodha is straightforward and involves a few simple steps. With the convenience of the UPI payment system and a user-friendly interface, Zerodha makes it easy for retail investors to participate in IPOs. By following this detailed guide, you can efficiently apply for IPOs and potentially benefit from investing in new and promising companies.
