How to Apply for IPO in Angel Broking? The procedure through which corporations raise capital from the market is known as an Initial Public Offering (IPO). For a variety of reasons, businesses require capital.
They may need money to grow their capacity, diversify into new business lines, extend their presence in India and overseas, or repay high-interest loans. All of these fundraising needs can be accomplished through an initial public offering (IPO).
What you need to know as an investor is how to apply for IPO in Angel Broking and, more significantly, how to buy an IPO online.
Who is qualified to invest in an initial public offering (IPO)?
In theory, any adult who is able to enter into a legal contract is eligible to participate in a company’s initial public offering (IPO). Of course, you must have a valid PAN card issued by the Income Tax Department as well as a valid Demat account.
Remember that in the event of IPOs, a Demat account is adequate instead of a trading account. However, if you wish to sell the shares after they are listed, you will need a trading account.
When you apply for an IPO for the first time, brokers will suggest you to open a trading account in addition to a Demat account. This is a crucial aspect to keep in mind! It is an invitation to offer, not an offer when you apply for an IPO.
It only becomes an offer when the IPO issuer offers you shares.
How to Apply for an Initial Public Offering (IPO)
There are two major issues to address here: how to apply for IPO online and how to apply for an IPO.
Here’s everything you need to know about applying for a company’s initial public offering (IPO):
- Fixed Price IPOs and Book Built IPOs are the two types of initial public offerings. The corporation establishes the IPO price in advance as the sum of the par value and the premium in a fixed price IPO. At that price, you can only apply for IPO in Angel Broking.
The firm will only propose an indicative price range for the IPO in a Book Built issue, and the actual price will be determined through the book building process. Currently, the majority of IPOs are conducted only through the book-building route.
- There are three types of IPOs: retail, high-net-worth individuals, and institutional investors. Retail investors are those who invest up to Rs.2 lakh in an IPO. Investing in the retail quota is advantageous since SEBI established the allotment technique to guarantee that as many retail investors as feasible receive allotment.
As a result, your prospects of receiving an allotment are substantially better in this instance. The allotment is proportionate in the case of HNIs, but discretionary in the case of institutions.
- You can bid for initial public offerings (IPOs) either offline or online. The form is filled out in physical form and submitted to the IPO banker or your broker using the offline approach. In an online application, you can access the application immediately through your broker’s trading interface.
The benefit of an online IPO is that the majority of your data is immediately entered from your trading / demat account, eliminating your clerical effort. The process of filling out the online IPO application form is greatly simplified as a result. In fact, applying for an IPO online is the preferable method.
- With the book created approach, the basis of allotment is finalised in 10-12 days, and the demat credit is completed a few days later. You can sell the shares once they are in your demat account and the stock is listed on the exchanges. To sell these shares, you’ll need a trading account, as previously specified.
- When it comes to applying for IPOs, there is one very vital point to remember. The ASBA service has now been made available by SEBI (Applications Supported by Blocked Amounts).
An ASBA IPO has the advantage of not requiring you to write a check or pay any money until the allotment is made. The sum of your application is blocked from your bank account, and the amount will be deducted only to the extent of the shares granted on the allotment day.
That is, if you applied for shares for Rs. 1.50 lakhs and were allotted only Rs.60,000, your account will only be debited for Rs. 60,000, and the block on the remaining amount will be removed from our bank account.
Angel Broking is a full-service broker in India that is both safe and reputable. Excellent management, cutting-edge technology, simple brokerage programs, and offline networks are all advantages of this company.
Angel Broking’s ARQ technology is fully algorithmic and does not require any human involvement. We hope you found our post on Angel Broking Account Opening Charges to be informative!