Investing In Ipos: Zerodha's Step-By-Step Guide

Investing in an IPO through Zerodha is a simple and convenient process. It requires a Demat account, a trading application like Zerodha, and a Unified Payment Interface (UPI) ID on the BHIM app. The UPI is a banking system for money transfers on payment apps like Google Pay and PhonePe. The first step is to create a UPI ID on the BHIM UPI app. Next, log in to the Zerodha Kite app or website and go to the 'Portfolio' section, then select 'IPO' and choose the IPO you want to invest in from the list of open issues. Enter your UPI ID, ensuring it is mapped to your personal bank account, and enter the lot size. Tick the cut-off price box to increase your chances of allotment, as this indicates your willingness to subscribe to shares at any price within the band. Finally, accept the mandate request on your UPI app.

How to create a Zerodha account

To create a Zerodha account, you can follow these steps:

• Visit the Zerodha website.
• Click on the "Sign Up" button.
• Enter your mobile number and confirm the OTP sent to your phone.
• Verify your email address by entering the 6-digit OTP sent to your email.
• Enter your PAN number and date of birth, then click "Accept and Continue".
• Pay the account opening fees using UPI, Net Banking, Debit or Credit Card.
• Sign in to your DigiLocker account to share your Aadhaar details with Zerodha.
• Enter your bank account details and background information.
• Read all the instructions and tick all the checkboxes, then continue.
• Write the displayed OTP on a piece of paper and hold it in front of a camera to complete the online In-Person Verification (IPV).
• Upload all the required documents, including a copy of your PAN card, a proof of signature, a copy of your Aadhaar card, a bank statement or cancelled cheque, and proof of income (if you wish to trade F&O).
• Complete the e-sign with Aadhaar.
• Verify your email address by entering your security code.
• Review the account opening form and click "Sign Now".
• Enter your Aadhaar number and the OTP sent to your registered mobile number, then submit.

If you are an NRI, you cannot open an account online and will need to fill out a PDF application form and send it to Zerodha's designated office along with the necessary documents.

How to apply for an IPO using the Kite app

To apply for an IPO using the Kite app, follow these steps:

• Log in to the Kite app and select 'IPO' in the 'Portfolio' menu.
• Select the IPO from the list of open issues.
• Enter your UPI ID. Ensure that your UPI ID is mapped to your personal bank account. The application is liable to get rejected if the person applying is different from the one whose bank account is being used.
• Place your bid. Select the type for your application. When placing the bid, only quantities that are a multiple of the lot size are allowed. If you want to apply at the cut-off price, simply click on the checkbox next to 'Cutoff-price'. If you wish to place a bid at a different price, enter a price in the 'Price' field.
• Once you've completed all the steps, click on the checkbox to confirm that you have read the terms and conditions, and click on 'Submit'.
• Accept the mandate request on your UPI app.

At the end of the day, you will receive an SMS from the exchange confirming your application.

How to apply for an IPO without a UPI ID

Zerodha offers an easy way for its customers to apply for IPOs online. However, it only offers UPI-based IPO applications. If you do not have a UPI ID, you can create one for free through a few simple steps.

Alternatively, you can apply for an IPO using net banking. This provision is available with SBI, Kotak, HDFC, Axis Bank, and ICICI.

• Open an instant account with Zerodha and start trading today.
• Log in to the net banking portal provided by your bank.
• Download the blank ASBA form from NSE or BSE.
• Print the forms and fill in your information, including personal details and demat account details.
• Submit the form to the bank. The bank must be designated as a Self-Certified Syndicate Bank (SCSB).

How to check your IPO application status

To check your IPO application status, you can follow these steps:

• Check your registered email address for IPO allotment status notifications.
• Visit the IPO Registrar's website.
• Click on the Public Issues/IPO Subscription/IPO Status.
• Click on the IPO from the drop-down list.
• Enter either your PAN Number/Application number/IFSC code/Account Number/DP ID or Demat Account number.

You can also check the status on the NSE, BSE, and the Registrar and Transfer Agents (RTA) websites. To do this:

• Log in to nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp.
• Select the symbol from the drop-down options.
• Enter the application number.
• Visit mock.bseindia.com/investors/appli_check.aspx.
• Enter the application number or the PAN.

Tips before buying an IPO in Zerodha

• Make sure you have a Demat account, a trading application like Zerodha, and a Unified Payment Interface (UPI) ID on BHIM, Google Pay, or PhonePe.
• Fill in the IPO application form correctly to avoid rejection on technical grounds.
• Make your bid at the highest possible limit of the price band. Retail Individual Investors (RIIs) can also make cut-off bids, which will secure your bid at the discovered price.
• Make as many applications as possible with different Demat accounts by asking family members to apply or by using multiple Demat accounts.
• Apply early to gather data based on bids already submitted, but don't wait until the last moment to avoid making hasty decisions.
• The IPO window in Zerodha is open from 10 am to 4:30 pm. You can apply or modify your application during this time. To delete your application, cancel between 12 pm and 4:30 pm.
• Zerodha does not charge any fees for applying for an IPO, and there is no brokerage fee when selling allocated IPO shares through Zerodha. However, you will still need to pay government taxes and Demat debit transaction charges.

Frequently asked questions