Yes, it is. A correct PAN number is always verified before getting shares into your account. So, investors should cross-check the PAN number and other details while filling up the IPO form. Any error in the same can lead to a cancellation of your IPO application.

When a company files for an IPO to get funding from the public, it determines its total number of shares that will come in a lot. A lot can be multiple of any numbers, say 5, 10, 20, or 100. So, as the name suggests, Minimum Lot Size refers to the minimum number of shares or number of lots an investor can apply for.

If a buyer wants to purchase more shares than the prescribed quantity in the Minimum lot size, he will have to apply in the multiples of IPO market lot size. The minimum order quantity refers to the minimum shares an investor has to buy to invest in the company.

Suppose a company specifies that 20 is the minimum order quantity and an investor wants to purchase 200 shares, then the order can be placed in multiples of 20 only. Hence, the investor can apply for multiple of 20 shares, i.e., 20, 40, 60, 80, or 100.

Here, in this case, 20 shares are the minimum order to be placed, and 10 lots (200/20) are the number of lots investors are looking to purchase.

What is the Difference between Book Building Issue and Fixed Price Issue?

When a company declares an IPO, it can be made through the fixed price issue or book building issue, or a combination of both.

Fixed Price Issue Method

The company that files to issue an IPO to the public determines a fixed share price to offer shares to the investors. This method helps investors to know the exact cost of the company’s stock before it goes public. After the last date of the IPO issue, the investors can access the demand and the corresponding stock price. In this method, investors have to make complete payments of the shares they want to acquire. If the number of allotted shares is less than what the investor had applied for, the excess funds get transferred to the investor’s registered bank account.

Book Building Issue Method

In the book building issue method, the company does not determine a fixed or final price. Only an indicative price range is provided to the investors. The lowest price in the band is known as the ‘floor price,’ and the highest price is considered the ‘cap price.’ As investors are unaware of the exact price, they can bid for their desired number of shares at the rate he is willing to pay. The final price is determined after the bidding is closed. When the bids are finally registered, the company prepares its book and comes to the share's final price.

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Yes, you can sell shares during a special pre-open trading session, allowed by BSE and NSE for IPO shares on listing day. It is applicable only for the first day of their IPO issue. The pre-open session lasts only for 45 minutes, between 9:00 AM to 9:45 AM. One can enter, modify and cancel the order during this period.

Follow the steps to sell IPO shares in the pre-open market on a listing day:

Call our customer care number +91 7667273344, or go online on our XTS trading app from your mobile or laptop and place the sell order at the price you would like to sell.

Things to note are that if a listing price is equal to or more than the sell order price in the pre-open time, your shares will be sold at the listing price.

If it goes the other way, if the listing price shows a price less than your sell order price in the pre-open market, your order will be cancelled.

Yes, you can invest in an IPO/Mutual fund units/insurance through the same product.

IPO or Initial Public Offering, as the name suggests, is the first time issue of a company’s shares to the public by listing in a stock exchange. IPO has the potential to offer very high returns to investors. One can apply for an IPO through two different modes: online & offline.

Applying for an IPO is very simple, but in the back end it involves a tough process as IPO order cannot be placed directly through the broker. The investor has to place the order through his bank that provides ASBA facility.

What is ASBA?

Application Supported by Blocked Amount (ASBA) is the safest way to apply for an IPO. When an investor places an order through ASBA, the funds get blocked in the bank account for the same. In some cases, the demand is much higher that the number of shares listed for fresh issue. In that case, the amount gets debited from your bank account only when the shares are allotted on your name.

Here’s all you need to know about how to apply for an IPO with ATS. For you to apply for an IPO with ATS, you should have these three things:

1. Demat Account – Opening a Demat account is a must have to apply for an IPO. Click here to open a DEMAT account with us.
2. The second thing is to set up your UPI ID. Google Pay, Paytm, Phone Pe, BHIM are the examples of UPI. UPI account with enough balance is a must for you to apply for an IPO, amount would only be blocked and not debited until you are allotted delivery of shares.
3. Once you have both demat account and one of the UPI app installed on your phone you are now ready to place bids.

Key Steps to Apply for an IPO Online

• To apply for IPO, you need to click on the home page top button. You will be redirected to our IPO window. Click on “Apply Here”.
• In the next window, enter your client ID and hit login. Now enter 6-digit OTP that is sent to your registered mobile number and click on submit.
• In the next window, you will see a list of IPOs that are active. Select the IPO that you want to place a bid on.
• Enter the UPI ID that you have created and click on submit. With this your bid will be placed with the exchange.
• Enter the Number of lots and price at which you wish to apply for.
• You will receive a notification to block funds in your UPI app. Approve the request.
• Upon the successful approval, the required amount will be blocked in your bank account.
• During allotment, the blocked amount will be deducted from your bank account and the numbers of shares are credited into your Demat account. Any excess amount to the extent of shares applied but, unfortunately couldn’t be allotted, will be unblocked by the bank later.

While applying for an IPO, one has to mention his bank account details. The bank blocks the amount applied for IPO in the account. However, this process is time consuming . Therefore, to save investor’s and exchanges time, SEBI has now investors to use their UPI (Unified Payment Interface) ID as a payment option.

Once you place an IPO order, the bank requests its authority to block funds equivalent to amount applied for. An intimation of this request is sent to applicant on his registered mobile number. Subsequent debit of funds happen in case of allotment of shares. Any excess amount to the extent of shares applied gets released if shares are not allotted.

Clients can submit application forms in nearest stock broking office. IPO application forms are available for free. Filled application can be submitted to our nearby office.

Yes, you can buy or apply for an IPO through ATS, using its user-friendly XTS App. Here’s all you need to know about how to apply for an IPO with ATS. For you to apply for an IPO with ATS, you should have these three things:

1. Demat Account – Opening a Demat account is a must have to apply for an IPO. Click here to open a DEMAT account with us.
2. The second thing is to set up your UPI ID. Google Pay, Paytm, Phone Pe, BHIM are the examples of UPI. UPI account with enough balance is a must for you to apply for an IPO, amount would only be blocked and not debited until you are allotted delivery of shares.
3. Once you have both demat account and one of the UPI app installed on your phone you are now ready to place bids.

Key Steps to Apply for an IPO Online

• To apply for IPO, you need to click on the home page top button. You will be redirected to our IPO window. Click on “Apply Here”.
• In the next window, enter your client ID and hit login. Now enter 6-digit OTP that is sent to your registered mobile number and click on submit.
• In the next window, you will see a list of IPOs that are active. Select the IPO that you want to place a bid on.
• Enter the UPI ID that you have created and click on submit. With this your bid will be placed with the exchange.
• Enter the Number of lots and price at which you wish to apply for.
• You will receive a notification to block funds in your UPI app. Approve the request.
• Upon the successful approval, the required amount will be blocked in your bank account.
• During allotment, the blocked amount will be deducted from your bank account and the numbers of shares are credited into your Demat account. Any excess amount to the extent of shares applied but, unfortunately couldn’t be allotted, will be unblocked by the bank later.