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Apply to invest in stocks listed in Primary Market
(Initial Public Offering) with just a few clicks.

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IPOs in focus

Upcoming IPOs

IPOs Name
Company Details

How to Apply for an IPO?

Login to your 5paisa account and select the issue in the current IPO section
Enter the number of lots and price at which you wish to apply for
Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
You will receive a mandate notification to block funds in your UPI app
You will receive a mandate notification to block funds in your UPI app

What is an initial public offering (IPO)?

Initial public offering (IPO) can simply be defined as the process in which a private company offers its share to the public for the first time, and in turn, becomes a publicly-traded company. Through this process of IPO, the company can raise its equity capital.

How does an IPO work?

1. Private companies that have achieved the ‘unicorn status’ in their growth trajectory, generally decide on ‘going public’.

2. In India, the process of IPO is regulated by the Securities and Exchange Board (SEBI), so the first step is to register with SEBI.

3. After submitting all the required documents and on receiving approval from SEBI, the company is required to determine the share price and the number of shares it plans to issue.

4. Following this, the company must choose between the two types of IPO issues- Fixed price IPO and Book Building IPO.

5. After IPO valuation, the company’s shares are made public.

Procedure for investing in IPO

The first step in investing in an IPO is choosing a suitable IPO. One can refer to IPO watch or IPO calendar for the list of latest IPOs. After choosing the IPO of interest, there are simple steps that need to be followed:

1. Acquire the application form, either physically from a broker, a distributor, or from an online portal like 5paisa.

2. Fill the form with all the required details including personal, bank, and Demat account details.

3. Provide details about the total investment amount.

4. The shares will be allotted to an individual within 10 days of closing of the offer.

Who is eligible for applying for an IPO?

An adult who is capable of entering into a legal contract is considered eligible for investing in an IPO. The individual can be a qualified institutional investor, anchor investor, retail investor or a high net-worth individual. Apart from this, some basic criteria for eligibility are:

1. The individual should have a pan card issued by the income tax department.

2. A valid Demat account

3. It is not mandatory to have a trading account for investing in an IPO but it is advisable to have one. A trading account will help an investor sell the stocks present on the IPO listings, in near future.

Steps to apply for an IPO from 5paisa

There are five steps to apply for an IPO from 5paisa

1. Login to the 5paisa account and select the issue from the current IPO section.

2. Based on the individual’s preference, one can select the number of lots and price for the desired IPO.

3. Enter the UPI ID, check all the details, and select submit. With this, the process is completed and the bid will be placed with the exchange.

4. Finally, the individual needs to approve a mandate notification received in their UPI app.

Frequently Asked Questions

What is an IPO?

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

What is book building?

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

Who can invest in IPO?

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

Qualified institutional investors (QIIs)
Anchor investors
Retail investors and
High net-worth individuals (HNIs)/Non-institutional investors (NII).

What is IPO subscription period?

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

What is the IPO application process?

Check: IPO Application Process

For details about the new IPO application process, click here.

How to apply for IPO on 5paisa?

To apply in an IPO with 5paisa:

Login to the 5paisa website or mobile trading app
Go to the Current IPOs section
Select the IPO you wish to apply for
Enter IPO details like price, quantity (lots) and your UPI ID
Check details and Confirm
Approve the UPI notification received on your phone (in BHIM App or your net banking app)

Where can I find the list of upcoming IPOs?

You can easily find it on 5paisa.com

Check: List of Upcoming IPOs in 2021

What are the important things that should be kept in mind before applying for an IPO?

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.