How To Buy And Bid For An IPO Online?


Initial Public Offering (IPO) refers to the process of issuing fresh, existing or convertible shares by a company for the first time to the general public. IPO is the way to raise capital for companies. An IPO company is not obligated to repay the raised capital to the investors. After this first issue, the company’s shares get listed on stock exchanges. It is the process when a private or unlisted company changes its status to a public company. They can be traded on public stock exchanges after the successful process of IPO.

IPO is a great opportunity for investors. They can get high returns on their IPO investments, provided it is an informed decision. Investors are entitled to get a stake in the company. It completes its IPO allotment and participates in its growth. In turn, the company pays them a part of its profit in the form of dividends. 

If an investor looks for significant gains in the long run, they can stay invested in their capital for the long term. Otherwise, they can sell them on the public stock exchanges for short-term gains. 

IPO Investment Procedure – How to Bid and Buy

An IPO can be a Fixed Price IPO or book building offering. Under Fixed-Price IPO, the issuer company determines the share price before it goes public. and it is mentioned in the offer document to the SEBI. Under the Book Building Offering, the company offers a bidding range for investors. and the final share price is decided later by the company. 

Online IPO Bidding Process

Interest on the blocked amount will continue to be credited to your bank account. You can even withdraw the IPO bidding with the help of your broker in case you need your money urgently.

Offline IPO Bidding Process

Since returns and risks go hand-in-hand in the stock market so a retail investor should weigh the benefits and risks associated with an IPO. 

Thus, to invest in IPOs conveniently, so get ready with your online demat account.

Read also:- What Types of Broker Financial Services Are Available?

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