How to invest in an IPO online?

An initial public offering (IPO) is one way to buy shares of a company that is going public. It is a popular mode of investment because it has the potential to grow manifold in a short period of time.
Take the case of Matrimony.com. When the company decided to go public, they were oversubscribed 4.41 times, which means that there was over four times the demand for shares that were issued by the company. This is not uncommon as IPOs are an opportunity to make a quick buck. So, read on to know how to invest in IPOs online.
Decision
The first step is to choose the IPO that you wish to apply for. A great way to decide is by going through the company’s prospectus. You can find them on Securities and Exchange Board of India’s (SEBI’s) website.
01

Funding

You can use your savings to invest in an IPO. But worry not if you don’t have sufficient funds in your account. There are a few banks and non-banking finance companies that are willing to lend you money, at a certain interest rate. So, inquire about the interest rates before you take a loan.
02

Demat-cum-trading

A demat account is a prerequisite to apply for an IPO. A demat account is nothing but a facility to store your stocks and financial securities electronically. A demat account can be opened by submitting your PAN card, Aadhaar card, address and identity proofs.
03

Application process

Once you have activated your trading-cum-demat account, you need to be aware of Application Supported by Blocked Amount (ASBA) facility, which is compulsory for IPO applications. The ASBA is an application that authorizes banks to block money in your bank account.

Purchasing IPO Stock

Purchasing IPO stock depends on when in the process you buy it. In any case, you must work through a registered stockbroker. If the company is not yet public, go to its website and call the investor relations representative at the firm's contact number. Inquire if shares are for sale in a private offering and at what price. If possible, the representative will direct you to the firm's broker dealer to complete the sale by wiring funds to the firm.
They will then issue you stock certificates. If you want to purchase stock at the IPO or afterward, register with a stockbroker and wire funds to your brokerage account. When the IPO occurs, call your broker or go online, enter the stock symbol of the company and purchase the amount of shares you want. The company will issue you virtual certificates for the amount of shares you purchased.

Overview of the IPO Process

This guide will break down the steps involved in the process, which can take anywhere from six months to over a year to complete.
Below are the steps a company must undertake to go public via an IPO process:

Whether the project is a new home or a residential addition or significant remodel, you will need governing agency approval and permits. This is to ensure that the new structures will be safe to use.
Whether the project is a new home or a residential addition or significant remodel, you will need governing agency approval and permits. This is to ensure that the new structures will be safe to use.
Whether the project is a new home or a residential addition or significant remodel, you will need governing agency approval and permits. This is to ensure that the new structures will be safe to use.
Whether the project is a new home or a residential addition or significant remodel, you will need governing agency approval and permits. This is to ensure that the new structures will be safe to use.
Whether the project is a new home or a residential addition or significant remodel, you will need governing agency approval and permits. This is to ensure that the new structures will be safe to use.