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How to Apply for an Initial Public Offering (IPO)?


The process of selling new shares to investors is called Initial Public Offering (IPO). Companies issue IPO to investors in order to raise capital to expand the business or modernize the present business.


One can obtain application from Syndicate member (Stock broker), Collection centers, Registrar to the issue (RTI), Self Certified Syndicate Bank (SCSB), Bankers to the issue or from the websites of the Stock Exchanges.

How to Apply for an Initial Public Offering (IPO)?

You are entitled to receive abridged offer document along with application form. You can obtain full Offer document from Company, SEBI or from the websites of Company, Stock exchanges.

Please read the offer document carefully before investing. Do not invest on tips or market sentiments. The offer document is also called as Prospectus.

The application, duly filled, can be submitted to Syndicate member / SCSB, whose contact details will be provided in the offer document/ abridged offer document.

Before submitting the application, kindly verify the following details and ensure that they are filled correctly:

1. Status of the Applicant
2. Name of the applicant
3. Age of the applicant (age of first holder, in case of application, is by joint holders
4. Depository participant name
5. DP Account number
6. Category of the investor
7. Details of the payment (Cheque or Demand Draft number, Bank name) or Signing the undertaking authorising the bank to mark lien of the funds
8. PAN
9. Signature of applicant


If you are making payment by Cheque/Demand Draft, always mention the application form number on the reverse of the draft / cheque. Do not make payment by cash/ postal order / money order.

The shares will be allotted or unblock of the amount in your bank account (in case of ASBA applications) with in 12 working days. If payment is made by Cheque/Demand Draft, registrar will dispatch the refund orders with 12 working days.

Point to remember: The shares allotted will be available for sale only on or after 12th working day from the closure of the issue. Please do not sell the allotted shares before listing.

Source: SEBI

Story first published: Saturday, May 23, 2015, 13:05 [IST]
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