“How to Apply for an IPO in Zerodha?” is a question among every new Zerodha user, and it's pretty simple once you know the steps. In this post, I will explain how to apply for an IPO in Zerodha.
What is an IPO?
IPO stands for initial public offering, and in simple words, initial public offering is a way of selling the shares of a company to institutional and retail traders to fund the various operational needs of the company. It's also the first step towards listing a company on a stock exchange.
What is so special about IPOs among investors?
IPOs are launched at a discounted price to attract investors fast to raise funds for the company. If the company has the potential to grow, the stock price will skyrocket in the coming days. Hence, the best time to invest is when the price is still low. If one misses buying the IPO, it can be difficult to buy it later since the price may be pretty high.
How to Apply for an IPO in Zerodha: Essential Steps
One question bound to cross your mind is how to track upcoming IPOs on Zerodha. You can do it by visiting zerodha.com/ipo.
To apply for an IPO in Zerodha, you must use Zerodha's Kite app and any supported UPI application. You can find out what UPI applications are supported by visiting NPCI site. Zerodha doesn't charge any additional fee for IPO applications.
Here are the steps you need to follow to apply for an IPO in Zerodha:
- You can begin by logging into your Kite app or the Kite website.
- Next, you can click on Bids and then click on IPO.
- Next, select the IPO from the IPO list and click Apply.
- You will need to click on Apply again and enter your UPI ID.
- Next, you will have to enter the quantity and the price.
- After that, you must tap on the undertaking tick box and swipe the Submit button.
- Next, you should accept the mandate on the UPI app.
One important thing to bear in mind is that the UPI mandate will be accepted until 5 p.m. on the IPO closing day.
Even though buying IPOs seems quite intriguing, many new Zerodha users don't know how to apply for an IPO in Zerodha. That's the reason why they have the fear of going wrong. However, the process has only gotten simpler than before with the Bids tab on Zerodha's Kite application. After reading this post, you should be confident about buying IPOs on Zerodha.
How to Apply for an IPO in Zerodha: FAQs
What is an IPO, and why is it important?
An IPO, or initial public offering, is a process where a company sells its shares to institutional and retail investors to raise funds and become publicly traded on a stock exchange. It's crucial for companies to secure capital for their operations and offer investors an opportunity to buy shares in a potentially promising company.
Why are IPOs special among investors?
IPOs often debut at discounted prices, making them attractive to investors seeking potential growth. If a company performs well post-IPO, its stock price can rise significantly, offering early investors substantial returns. Missing out on an IPO can make it challenging to buy shares later.
How can I track upcoming IPOs on Zerodha?
You can track upcoming IPOs on Zerodha by visiting zerodha.com/ipo. Zerodha provides information about the IPOs that are open for subscription.
What do I need to apply for an IPO in Zerodha?
To apply for an IPO in Zerodha, you'll need the Zerodha Kite app and a supported UPI (Unified Payments Interface) application. Ensure your UPI app is on the list of supported partners at www.npci.org.in/what-we-do/ipo/live-partners. Zerodha does not charge any additional fees for IPO applications.
What are the essential steps to apply for an IPO in Zerodha?
Here are the steps to apply for an IPO in Zerodha:
- Log in to your Kite app or the Kite website.
- Click on “Bids” and select “IPO.”
- Choose the desired IPO from the list and click “Apply.”
- Click “Apply” again and enter your UPI ID.
- Specify the quantity and price.
- Tick the undertaking box and submit your application.
- Accept the mandate on the UPI app.
Is there a deadline for accepting the UPI mandate for IPO applications in Zerodha?
Yes, the UPI mandate for IPO applications in Zerodha must be accepted by 5 p.m. on the closing day of the IPO. Ensure you complete this step within the specified timeframe.
Does Zerodha charge any additional fees for IPO applications?
No, Zerodha does not charge any additional fees for IPO applications. You can apply for IPOs through Zerodha without incurring extra costs.
Why do many new Zerodha users find it challenging to apply for IPOs?
Many new Zerodha users may find it challenging to apply for IPOs due to a lack of familiarity with the process. However, Zerodha has simplified the process with its Kite application's “Bids” tab, making it more accessible to users.
How can I gain confidence in buying IPOs on Zerodha?
After reading this post and following the steps, you should feel confident about buying IPOs on Zerodha. Familiarizing yourself with the process and using the Kite application can simplify the application process.
What are the potential benefits of investing in IPOs through Zerodha?
Investing in IPOs through Zerodha allows you to access promising companies early and potentially benefit from their growth. Additionally, Zerodha does not charge extra fees for IPO applications, making it cost-effective for investors.