IPO - Initial Public Offerings

What Happens after the IPO period?

Once the IPO subscription period is over, the shares are listed on the exchanges after a couple of days. After the listing, the shares are traded freely in the market during market hours.

What is the Process of Investing in an IPO Online?

We generally know the latest IPO calendar of a particular year beforehand. Investing in an IPO requires research as we may not have a lot of historical data on the performance, management and other crucial fundamental factors. This is when we compare that company to a listed company. Hence, determining the IPO that you want to invest in is an essential first step. Every company that launches an IPO, shares a prospectus with the public offering details about the company’s business and future plans. Go through this prospectus thoroughly and research the company before making a decision.

You need the following three accounts to invest in a new IPO and trade them in the secondary market eventually:

• Demat Account: This is where you store your shares in an electronic form.

• Bank Account: A bank account is required to fund your share market transactions. However, a bank account can come in handy to apply for an IPO as well. Almost all net-banking platforms have the facility to apply for IPOs through the Application Supported by Blocked Amount (ASBA) facility.

• Trading Account: Trading account is used to buy and sell shares. You can open a trading account with Groww.

The process is a little different. When you apply for a company's IPO, regardless of any method of application, the aggregate amount gets blocked from your bank account. It will show up in your balance but will not be available for use. Once the allotment is finalised, if you have received the shares the amount will get debited from your account. If you have not received any shares in the IPO, the amount will be unblocked and will be available for use.

How to apply for IPO on Groww?

• Once you have done the preliminary process of registering on the Groww app, opening a demat-cum-trading account and KYC verification, applying for IPO is an easy process
• Open your Groww App, scroll down on the stocks tab and click on the IPO section
• The next page will show a list of live IPOs, upcoming IPOs and IPOs that are already closed by now
• Pick the live IPO you want to invest in
• In the next page, mention the number of lots you want to apply for
• Here you will be asked for your UPI ID. After you complete the process on the UPI app, the money will get blocked from your account
• The status of your IPO application will show up next to your application number in the same section