In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. However, before we begin, let me tell you my experience of applying to an IPO’s through Zerodha Account.
I’ve been using Zerodha for over four years now and been a happy customer. This discount broker has helped me save a lot of un-necessary brokerage charges if I had used any other full-service broker instead.
Anyways, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard.
Prior to this recently launched facility, the Zerodha customers have to use ASBA (Application Supported by blocked account) on their net banking portal to apply for IPOs. However, this was not a simple one-click process unlike what most of the other traditional big brokers like ICICI direct, HDFC sec, etc offered.
Although I am not a regular investor in IPO’s and only invest if I find the new offer a lot appealing. Nonetheless, having a simple process to invest gives flexibility whenever the opportunity arrives. Nonetheless, investors can apply for IPO’s directly within Zerodha console. And the best part is that the process is really simple.
Before you apply for an IPO
Obviously, you’ll need a Zerodha account if you want to apply to IPO’s with Zerodha. If you haven’t opened your account with Zerodha yet, here’s a detailed blog post on how to open your Zerodha Demat and trading account. Else, you can use this direct link to open your account.
Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Bhip app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.
A Quick List of Upcoming IPO’s in 2020
|Stock||Date||Price range||Min. qty.|
|SBI Cards and Payment Services||02 Mar 2020 - 05 Mar 2020||750 - 755||19|
|Antony Waste Handling Cell||04 Mar 2020 - 06 Mar 2020||295 - 300||50|
|NSDL||To be announced||-||-|
|Indian Railway Finance Corporation (IRFC)||To be announced||-||-|
|Barbeque Nation||To be announced||-||-|
|National Commodity & Derivatives Exchange (NCDEX)||To be announced||-||-|
|Life Insurance Corporation (LIC)||To be announced||-||-|
|Computer Age Management Services (CAMS)||To be announced||-||-|
|UTI Asset Management Company||To be announced||-||-|
|Bajaj Energy||To be announced||-||-|
|Equitas Small Finance Bank||To be announced||-||-|
|Burger King India||To be announced||-||-|
|Chemcon Speciality Chemicals||To be announced||-||-|
Steps to apply for an IPO with Zerodha Account
1. Login to Zerodha Console. Here’s the quick link.
2. On the top menu bar, go to Portfolio → IPO.
3. On this page, you can find the list of the active IPO’s.
4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.
5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.
6. Next, enter your UPI id. Make sure to select the correct bank account.
7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.
For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.
8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.
9. Finally, recheck the details and click on ‘Submit’.
10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.
Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.
Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received payment request on my iMobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.
On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from exchange once your application is placed successfully.
If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited in your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.
That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.
Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using Zerodha account. Happy Investing!
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting