How To Purchase IPO in Zerodha

Are you a Zerodha user but don’t know how to purchase an IPO in Zerodha? Well, this article has got you covered. Get the stepwise process to purchase IPO (Initial Public Offering) through Zerodha’s web and application platform. You can use both the UPI as well as the ASBA (Application Supported by Blocked Amount) method.

You must know what is an IPO before applying for one. Well, an IPO is the first time a company offers its equity shares to the public via stock exchange. You can apply to the IPO through your Zerodha Demat account.

How to Purchase IPO in Zerodha App through UPI

To purchase an IPO through the Zerodha website, follow the steps given below

Step 1	Open the Zerodha Kite App
Step 2	Tap on the Bids section
Step 3	Tap on IPO
Step 4	Select the IPO you want to apply for from the given list of IPOs. Tap on apply
Step 5	Tap on apply once more. Now enter the UPI ID.
Step 6	Enter the quantity and price. The quantity entered must be a multiple of the predetermined lot size. The price entered must be within the price bid range.
Step 7	Tap on the undertaking tick box and swipe the Submit button
Step 8	Accept the mandate on the UPI App

How to Purchase IPO in Zerodha Website through UPI

To purchase an IPO through the Zerodha website, follow the steps given below

Step 1	Log in to the Zerodha Kite web platform.
Step 2	Click on the Bids section.
Step 3	Click on IPO and select the IPO you want to apply for from the given list.
Step 4	Click on apply
Step 5	Click on the investor type and select your investor category
Step 6	Enter the UPI ID
Step 7	Now, enter the quantity and price. The quantity entered must be a multiple of the predetermined lot size. The price entered must be within the price bid range.
Step 8	Click on the Submit button.
Step 9	Accept the payment mandate on the UPI app. The UPI mandate can be accepted until 5 pm on the closing day of the IPO.

How to Purchase IPO in Zerodha through ASBA (Application Supported by Blocked Amount)

ASBA (Application Supported by Blocked Amount) is a method where the investor’s money for IPO application stays in their bank account but is temporarily blocked until the IPO shares are alloted. If the allotment is made, the money gets debited from the bank account; if not, the funds are unblocked. 

IPO application using online ASBA Method

• Log in to the Internet Banking portal
• Enter your Demat ID. Demat ID is a 16-digit number that is used to identify a demat account. It is unique to every account.
• Enter depository as CDSL
• Enter DP name as Zerodha

IPO application using offline ASBA Method

• Download the blank ASBA form from the NSE or BSE website.
• Take a printout of the form and fill out all the required details (demat account details, bid price, quantity, bank account details, etc).
• Submit it to the bank. The bank should be designated as a Self Certified Syndicate Bank.

Key Terms associated with IPO

Investors should know the terminology of IPO proceedings, such as. 

Price Band: It is the price range within which investors can place their bids.

Lot Size: It refers to the minimum number of shares you can apply your bids for.

Allotment: It is the process of distributing/allotting shares to investors.

Listing: This is when the stock starts trading on the stock exchange.

Final Thoughts

Applying for an IPO through Zerodha is easy and seamless through any of the discussed methods for purchasing IPO. It is up to the investor to decide which method of purchasing an IPO in Zerodha suits them.

The process of purchasing an IPO is similar for other discount stockbrokers as well. Applying through multiple demat accounts might increase your chances of getting an IPO allotment.

Meta Description: Know the stepwise process to purchase an IPO in Zerodha. Understand the offered methods for IPO purchase and key IPO terminology.

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