How can one invest in an IPO?

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Usually, when any company comes out with an IPO, it advertises heavily in the media. This is because the company wants to gain maximum publicity in order to ensure that the issue is a success. It is through this advertisement that one gets to know about the upcoming IPOs. It is very important that before applying for any IPO investment, an individual goes through the company’s financial statements, its track record and management’s future plans.

Get an Application Form

An individual needs to fill up the application form which is easily available with the brokers or any agent who sells mutual funds. The forms come free of cost. Fill up the form as per the directions mentioned in the form. Also, attach a cheque for the amount of shares you wish to buy. There is a minimum number of shares one needs to buy for specific issues, which is specified in the application form. Submit the form within the mentioned time frame.

Online Option

Securities Exchange Board of India (SEBI) is an autonomous body which regulates the entire finance and investment markets in India. SEBI’s sole purpose is to provide transparency and protect the investor. Every IPO has to mandatorily register with SEBI and once it gets the approval, the IPO is ready to get listed on the exchanges.

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