How to Invest in IPOs Using Demat Account – Step-by-Step Guide (2025)

How to Invest in IPOs Using Your Demat Account – Step-by-Step Guide (India 2025)

Initial Public Offerings (IPOs) are one of the most exciting opportunities for investors to own shares in a company right from the start. With more Indian startups and giants going public, IPOs offer potential for strong listing gains and long-term value.

In this guide, you’ll learn how to apply for an IPO using your Demat account, the process involved, and important tips to maximize your chances of allotment.

📌 What is an IPO?

An Initial Public Offering is when a private company issues its shares to the public for the first time and gets listed on the stock exchange (NSE/BSE). Investors can apply for shares during the IPO window at a fixed or price band.

🧾 Prerequisites to Apply for an IPO

Before applying, ensure you have:

A Demat account (to hold the allotted shares)
A Trading account (if applying through broker platforms)
UPI-enabled bank account (for payment authorization)
Basic KYC completed with PAN, Aadhaar, and mobile number linked

📈 Step-by-Step Process to Apply for an IPO

Step 1: Log in to Your Broker or Bank IPO Portal

Popular options include Angel One, Zerodha, Groww, Paytm Money, and most private banks (ICICI, HDFC, SBI).

Step 2: Select the Ongoing IPO

You’ll see a list of live IPOs with details like price band, lot size, dates, and company info. Click on the IPO you want to apply for.

Step 3: Enter Bid Details

Select the number of lots (1 lot = predefined number of shares)
Choose your bid price (cut-off or specific price within the band)

Step 4: Enter UPI ID

Enter your UPI ID linked to your bank account. You’ll receive a payment request on your UPI app (Google Pay, PhonePe, BHIM, etc.). Approve it.

Step 5: Wait for Allotment Results

If allotted, shares will be credited to your Demat account on the listing day. If not allotted, funds will be unblocked automatically.

💡 Smart Tips for IPO Investors

Apply at the cut-off price for higher allotment chances
Use multiple UPI IDs (linked to different PANs in the family) for better allocation odds
Study the company’s financials and DRHP before applying
Don’t fall for hype—focus on fundamentals, not FOMO

📊 Where to Track IPO Listings and Performance

NSE & BSE websites for official IPO data
Chittorgarh & Moneycontrol for allotment status and listing gains

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