How To Pre-Apply For Upcoming IPOs?

Given the way the current GMP or grey market premium for some of the upcoming IPOs is running say for instance:

Med Plus with issue opening between December 13-15 as against the IPO price of Rs. 796 commands a good enough GMP of Rs. 275. Similarly for Data Patterns the GMP is 460 as against the IPO price of Rs. 585. That said, if you are too optimistic on a particular share sale offering then other than adhering to the basic norms and tips for successful IPO shares allotment, you can also go about making a pre-IPO application.

What is pre-application for an IPO?

This facility of pre-IPO application is primarily addressing the IPO frenzy such that potential investors do not miss out on any lucrative IPO bid. Herein even before the IPO opens for public subscription, few of the platforms including Upstox, Groww, Paytm and some of the brokerages alike say for instance AngelOne allow to invest in the IPO in advance.

How does pre-application for an IPO work?

The system or the platform primarily stores and saves the pre-IPO application and at a time when the subscription for the IPO opens, it submits the application. So, in a way you are saved from the hassle of remembering the IPO offer period and can make an application much earlier.

Now on making a pre-order or applying for an IPO in advance, the investor shall be informed on each of the IPO process such as UPI mandate, request for blocking the IPO application money and finally on successful placement of the bid. Earlier, investors could apply for the IPO only during the IPO offer period that usually lasts for 3 business days.

How to pre-apply for an IPO via Angel One?

Step 1: If you are an existing demat account holder of Angel One, you could simply login to your account on the brokerage's mobile app.

Step 2: Under the discover menu, in investment opportunities you can easily find the IPO section.

Step 3: The complete list of currently active as well as upcoming IPOs shal be displayed. Say if I access the data as on today i.e December 12:

There are 2 IPOs currently running, one of CE Info Systems and the other one is of Metro Brands. The brokerage also mentions other details such as the date until when the issue will remain open. Overall subscription status, price band and even chances of oversubscription and listing gains.

Further down, you can then find the IPOs that will open probably next week i.e. Medplus (opening date - december 13), Data Patterns (December 14) and HP Adhesives (December 15).

Step 4: Whichever IPO looks an attractive deal to you, you can make an application for
Say for MedPlus -Minimum lot 1, maximum lot 13
Price band- Rs. 780-796
Cut off price-Rs. 796/ amount -Rs. 14,328 are all given out,
Simply you need to provide the lot size and the UPI Id and click on the invest button given right at the bottom.

Step 5: You will be again asked for a confirmation, which would pop up as Ready to invest? If you are sure. Press confirm

Step 6: Thereon after your pre-IPO bid is successfully placed, there will flash a UPI mandate message which will mention the date on which you will be receiving the UPI mandate notification for blocking the IPO bid amount.

There is also an option to delete the pre-IPO bid which can be done anytime before the IPO closes for subscription. The above process however does not guarantees successful allotment of IPO shares.

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