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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

📘 Related Blogs to Explore:


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