how to apply ipo in zerodha

Investing in Initial Public Offerings (IPOs) can be an exciting opportunity for investors to become part-owners of promising companies. Zerodha, one of India’s leading discount brokerage platforms, offers a convenient and user-friendly way to apply for IPOs. In this article, we will provide you with a step-by-step guide on how to apply for an IPO through Zerodha.

Step 1:

Open an Account with Zerodha: If you don’t already have an account with Zerodha, you will need to open one. Visit the Zerodha website and follow the instructions to create an account. You will be required to provide your personal and financial details, complete the KYC (Know Your Customer) process, and submit the necessary documents.

Step 2:

Complete the IPO Application Process: Once your Zerodha account is active, follow these steps to apply for an IPO:

1. Log in to your Zerodha account using your registered credentials.
2. Under the ‘Console’ tab, click on ‘IPO.’
3. You will find a list of available IPOs along with their details, such as the issue price, lot size, and dates.
4. Carefully analyze the IPO prospectus and decide if you want to invest in a particular IPO.
5. Click on the desired IPO and select the ‘Bid’ option.
6. Enter the number of lots you wish to apply for. Note that each lot size varies for different IPOs.
7. Choose the ‘Cut-off Price’ option if available. This means that you are willing to accept the price determined by the book-building process. Alternatively, you can specify the price at which you want to bid.
8. Review your application details and click on ‘Submit.’
9. Zerodha will validate your application and send you a UPI (Unified Payments Interface) mandate request.

Step 3:

Complete the UPI Mandate Process: The UPI mandate is a crucial step in the IPO application process. Here’s how to complete it:

1. Install a UPI-enabled app on your smartphone if you haven’t already.
2. Accept the UPI mandate request from Zerodha and authorize the payment by entering your UPI PIN.
3. Ensure that your UPI-linked bank account has sufficient funds for the application amount.

Step 4:

Check IPO Allotment Status: After the IPO application period ends, the allotment process begins. To check your IPO allotment status:

1. Log in to your Zerodha account.
2. Under the ‘Console’ tab, click on ‘IPO.’
3. Select the ‘Reports’ option to view the list of IPOs you have applied for.
4. Look for the IPO you want to check and click on the ‘Allotment Status’ link.
5. The status will indicate whether your application has been allotted or not.

Step 5:

Post-IPO Allotment: If your IPO application is allotted, you have successfully secured shares in the company. Here’s what you need to do next:

1. Pay for the allotted shares within the specified timeframe. Zerodha will provide you with the details for making the payment.
2. Once the payment is made, the shares will be credited to your Demat account.

Conclusion:

Applying for an IPO through Zerodha is a straightforward process that allows investors to participate in the exciting world of initial public offerings. By following the steps outlined in this guide, you can confidently apply for IPOs and potentially become a part-owner of promising companies. Remember to conduct thorough research on each IPO and make informed investment decisions.

Frequently Asked Questions (FAQ) – Applying for an IPO in Zerodha